Asia-Pacific region to witness a positive impact in the Cumene market
- 29-Apr-2022 6:42 PM
- Journalist: Xiang Hong
Cumene prices showcased an upward movement in the Asian market in the week ending 29th April. Despite the soaring COVID cases and lockdown restrictions, prices were seen going up in China. The primary factor for the increasing price trend in Cumene have been rising crude values, soaring demand, and weak supply.
According to the ChemAnalyst database, the Cumene prices in the Asian region witnessed an upward trend due to inflation in the ongoing Russia-Ukraine war. This intensified conflict has caused the already skyrocketing crude oil to ride further. Moreover, the fuel costs are climbing on a day-to-day basis, affecting the shipping trade activities, which had a positive impact on the Cumene price trend.
While Cumene is the main feedstock used in the production of phenol, acetone, and its derivatives, the healthy demand for these products is driving the growth of the Cumene market. Particularly, the growth of automotive and construction industries in developing countries like India, China, and Japan showcased increased requirements for phenolic resin and bisphenol A, which boosted the Cumene prices.
In China, COVID cases have been found to drop in Shanghai amidst the government's ease of lockdown restrictions on 22nd of April. The tight supply of the products in the domestic market started easing due to the relaxation in port congestion, which encouraged the manufacturers to ramp up the resumption of their production. As a result, the Cumene prices in China inflicted to USD 1060 per MT on 29th April.
Since Japan is one of the major exporters of Cumene in the Asia Pacific region, the trade disruption and geopolitical tension with increased raw material prices have forced the manufacturers under cost pressure. Additionally, phenol production increased in Japan due to the rising requirement for Phenolic resin in the developing construction and wood industry, which could enhance the Cumene market.
According to ChemAnalyst, "The growing demand for phenol and its derivatives might continue to trace upward in the coming weeks. Expected ease in China's lockdown restrictions and resumed production could increase the Cumene values. Furthermore, raw material prices are likely to continue an upward movement due to the ongoing geopolitical tension."