Currently, there are three production technologies for isopropyl alcohol in China: acetone hydrogenation, propylene hydration, and isopropyl acetate hydrogenation. Among them, the acetone method accounts for the majority of production capacity. According to Jinlianchuang data monitoring, the acetone hydrogenation method accounts for about 59% of the national total production capacity, while the propylene method, which was dominant in previous years, has gradually decreased its share, currently accounting for only 22% of the national total production capacity.

　　At the beginning of the large-scale construction of acetone-based isopropyl alcohol plants, operators mainly considered the large domestic acetone production capacity. Acetone hydrogenation to produce isopropyl alcohol is a low-pressure hydrogenation process with low reaction temperature, low energy consumption in the reaction and refining process, simple process flow, small equipment investment, and short payback period. However, in previous years, the cost advantage of the acetone method over the propylene method was not obvious. This year, however, the acetone method for producing isopropyl alcohol has emerged as a leader in the industry.

　　From the theoretical profit charts of the two processes this year, it can be seen that at the beginning of 2018, the profits of the two processes were both around the cost line, starting almost equally. However, thereafter, the profit situations of the two processes showed a two-pronged trend. Acetone-based isopropyl alcohol plants made substantial profits, while propylene-based isopropyl alcohol plants struggled below the cost line. With the cost disadvantage becoming increasingly apparent, many propylene-based isopropyl alcohol plants have chosen to halt operations and wait and see.

　　Furthermore, through the calculation of the linear correlation between the East China isopropyl alcohol market, the Shandong propylene market, and the East China acetone market data for each month of 2018, it has been shown that this year the correlation between isopropyl alcohol and acetone is higher. So what will be the future of the isopropyl alcohol market?

　　Currently, with the resumption of some previously shut-down phenol-acetone plants and high port inventories of acetone, the acetone market is unable to continue rising, and the cost support for the isopropyl alcohol market will weaken. It is heard that the Shandong Dadi Supu isopropyl alcohol plant is planning to start up later this month, which will increase the supply of isopropyl alcohol. Therefore, it is difficult for the market to continue its upward trend; instead, it is likely to consolidate and fluctuate.