Various factors are Pushing the Asian Cumene Market
- 22-Jun-2022 5:05 PM
- Journalist: Motoki Sasaki
The Cumene price trend continuously ascends in the Asian market due to diverse regional tensions. Rising COVID cases, trade disruption, and increasing demand have driven the Cumene market. The raw materials values also play a significant role in the Cumene price change.
The continuation of COVID testing in Beijing and the port hub of Shanghai has been creating havoc in the local market. The sudden outburst in Beijing brought back the tension across the affected area just as the local market was resuming after the lockdown eased. As consumer demand rises, the increased pressure on regional sellers prompted them to raise cumene pricing. Moreover, the continuous rainfall in China resulted in a severe flood alert. One of the suppliers informed our team that the flood warning raised by the manufacturing hub might result in the disruption of the supply chain.
In India, the demand for the product from the downstream derivative phenol and acetone manufacturers has been increasing, triggering the Cumene price to move in an uptrend. Furthermore, the healthy requirement for the product from the other downstream paints, rubbers, irons, and steel sectors also pushed the Cumene market. Besides, the fluctuating raw material prices due to the Russia Ukraine war and the sanctions on Russian imports affected the Cumene price trend. After witnessing the marginal increment in the Indian market, the price of Cumene rose by approximately 1 per cent from 10th June to 17th June.
Whereas in South Korea, the trade disruption caused by the trucker's strike dramatically affected the buying and selling activities due to hampering supply. The demand from the regional market coupled with the poor export activity affected the Cumene market. Thus, the aforementioned scenario was another reason for the Cumene price change in the Asian market.
According to the ChemAnalyst, "The price of Cumene is expected to increase in the coming weeks. The natural calamity in China is likely to affect the supply chain, resulting in the limited availability of the product. The demand from the downstream sectors might rise, further increasing the Cumene values. In addition, healthy buying sentiments from the regional market are expected, which may impact cumene pricing.