IPA shortage lifts the prices in India – 10 Jun 2014

Short supply of IPA due to domestic turnarounds and limited availability of imports have lifted the price of IPA in India. Consequentially, the bulk price for the chemical has leaped from levels of Rs. 106-108 to Rs. 120 a kg Ex- Kandla, prices are exclusive of all taxes. This review captures the current market sentiment for the chemical from traders and buyers across the country.

Deepak Fertilizers and Chemicals is the sole manufacturing unit for IPA in India with installed capacity of 70,000 MTPA, however, recently, the company has ceased its plant operation due to maintenance purposes.

While there is a short supply of imported IPA in the market, the demand for the chemical has been moderate to strong across various trading hubs in India.

A prominent trader added, " Most of the import shipments of the chemical are expected to hit Indian shores within a couple of weeks, until then no respite in the price is expected in the market".

According to the websites price database, the price of IPA reached as high as Rs. 117 per kg Ex- Kandla in the month of May, 2014, on account of temporary short supply situation.

At current price range, most of the traders in the market note curtailed buying momentum from the buyers end. "Most buyers are not willing to purchase the chemical at current prices. Buyers are aware of the current short supply situation and expect the prices to come down in the short run once fresh imports flood the market and Deepak Fertilizers resumes operations", a trader from Ahmedabad informed the website.

The barrel prices of the chemical have gained considerable momentum in various cities. In Chennai market the barrel price has escalated from levels of Rs. 115 per kg (exclusive of all taxes) to current level of Rs. 140 per kg (exclusive of all taxes) while in Delhi market, the price has escalated from trading level of Rs. 145 per kg (exclusive of VAT) to Rs. 150-152 per kg (exclusive of VAT).