Propanol Prices Explained

Propanol prices leveraged the increased demand from the household sector. The commodity posted a 2.2% incline in South Korea. Pharmaceutical and cosmetic product sales in the Asia Pacific region remain elevated due to the rising consumer focus on health and wellness. Also, orders from agrochemical industries, coupled with regular purchases from the herbicide and insecticide manufacturers surged because of the planting season. 

On the supply side, feedstock prices remain firm due to the increase in upstream OPEC+ crude oil prices and the geopolitical tension in the Middle East affected supply routes, spiking freight rates.

Why are propanol prices fluctuating?

1. High Demand

When there is greater demand than supply for propanol, producers raise propanol prices to boost their profitability. Normally, this happens when there aren’t many or any propanol substitutes on the market and customers show a willingness to pay at any price rate

For instance, its Asian propanol prices fluctuated in the first half of 2023 due to the rising demand from the metallurgical and downstream chemical sectors. Additionally,  the decrease in demand and a rise in stocks influenced its varying costs.

2. Weather Conditions

August 2023 experienced a change in propanol prices in North America because of Hurricane Idalia’s effects that caused low upstream costs, greater product availability, and decreased demand. The hurricane obstructed the supply chain which temporarily dropped propanol prices before rising once more toward the end of the quarter.

3. Transportation Costs

Propanol constantly faces fluctuations in transportation costs due to changes in fuel prices during long-distance transit which impacts its product prices. For instance, a decrease in water levels along the Mississippi and Ohio rivers affected its U.S. costs as delayed shipping routes took hold of the upstream propanol supply.

4. Raw Material Costs

The price of raw materials like acetone or propylene affects the total manufacturing cost of propanol. Additionally, it fluctuates along with variations in the cost of other basic ingredients. For example, propanol prices increased in Europe due to supply dynamics in the region.  As a result, several producers raised the pricing of all propanol derivative products.

Which variables impact the price of propanol?

• High Demand
• Weather Conditions
• Transportation Costs
• Raw Material Costs
• Geopolitical Events
• Regulatory Changes
• Global Economic Factors

Where does propanol come from?

Propanol is a colorless liquid with diverse applications across various industries. Commonly known as isopropyl alcohol (IPA), it is usually obtained from petrochemical sources through a series of manufacturing processes.

Additionally, this versatile substance serves multiple purposes in different industrial sectors. There are two different propanol, one is n- propanol and another is isopropanol.

1. N-Propanol – This is classified as a main alcohol since it is produced by hydrating propylene, a byproduct of the petroleum refining process. Also, it is created during the process of producing propylene and water reacting in the presence of a catalyst.

2. Isopropanol – As an alternative, indirect hydration of propylene oxide is another way to produce isopropanol. The process begins with the generation of propylene oxide and ends with the reaction of isopropanol with water.

What are the uses of propanol?

Primarily, it is used as a solvent in cosmetics and pharmaceutical industries. Compared to ethanol, propanol evaporates quickly, leaving zero oil traces.

Its widespread use around the world is largely due to its reduced toxicity when compared to other solvent options. Some of the major industrial applications of propanol include:

1. Solvent – It’s a good option due to its softer and more pleasant smell than higher alcohols. Moreover, it tends to absorb less water than lower alcohols. As a result, it is primarily used in printing inks, specifically flexographic ink, and is also added to metal degreasing agents and floor polishes in the cleaning agent industry.

2. Medical Use – Propanol is used in many medical situations, usually taking the place of ethanol in inhalation products, particularly nebulizers.

3. Cosmetics – Its acetate version is used as a mild remover for nail polish and synthetic nails. Additionally, it’s included in moisturizers, spray scents, soaps, hair care products, and hand sanitizers.

4. Fuels – It is a highly flammable liquid with higher octane numbers that can be used as fuel in internal combustion engines.

5. Cleaning Products – Cleaning solutions and disinfectants usually contain N-propanol and isopropanol, which are essential for getting rid of germs and viruses.

6. Surface Coatings – To enhance the coatings’ drying and application qualities, it is used in surface coatings such as metal and wood finishes.

7. Adhesives and Sealants – It is added to adhesive and sealant formulations to improve thickness and flow characteristics that guarantee the best possible application and bonding.

What is the future price of propanol?

One of the main drivers of this market is the growing need for isopropyl alcohol, mainly due to the manufacturing of pharmaceuticals and chemical intermediates. The increasing need for sectors like printing, cosmetics, and pharmaceuticals fuels Asian markets like China and India.

Another factor expected to drive demand for adhesives, paints, coatings, and industrial machinery is the anticipated increase in infrastructure spending in emerging economies. The North American and European construction and automotive industries drive marketability in the propanol market. For instance, the International Organization of Motor Vehicle Manufacturers (OICA) increased vehicle production by 2.2%.

Furthermore, the development of bio-propanol by Italy (Eni company) and Germany (BASF) will provide a price boost in the propanol market. Thus, the price of propanol will be $2092.32 per metric ton in 2028 and its global market is expected to reach $6.25 in 2030 with a CAGR of 6.6%.