The Asia cumene market is moving into a period of increased volatility as shipping prices skyrocket and China heads into a pivotal decision regarding the extension of anti-dumping duty on imported acetone. These trends are likely to impact regional trade flows, demand patterns, and prices for cumene, a predominant intermediate in the manufacture of phenol and acetone.
Over the past few weeks, world freight rates have seen an abrupt surge, especially on transpacific routes. Transport rates from Shanghai to the US West and East Coasts have surged over xxx and xxx respectively on account of increasing demand, constrained vessel capacity, and resumption of hitherto suspended services. Container prices per xx-foot unit have seen their highest weekly rise since xxxx, greatly increasing logistics costs for Asian chemical exporters such as cumene.
This increase in freight prices has coincided with the time when China, being...
