For the Quarter Ending March 2022
North America
In North America, prices of Cumene showcased mixed sentiments during the first quarter of 2022. Initially, the prices rose marginally in January and February due to the surging raw materials and their derivatives aftermath of the Russia-Ukraine war. High freight, transportation, and feedstock charges also aided the market trend of Cumene in the US market as it is primarily imported from Japan. Prices of Cumene in the USA rose by about 3.3% and settled at USD 1240 per MT in February. Later in March, prices witnessed a slight drop due to the ample availability of the product and drowning demand from the domestic market.
Asia Pacific
During the quarter ending March 2022, Cumene witnessed a continuous rise in the Asian market. Rising demand for the commodity in the downstream automotive and chemical sector and excessive increase in crude prices resulted in the price hike of Cumene. Later, even though there was no significant increase in inquiries, manufacturers were forced to pass on the cost pressure to consumers in order to protect their margins. Furthermore, soaring freight and transportation charges due to high fuel prices also severely impacted Cumene values. Thus, Cumene's CFR prices in India were assessed at USD 1415 per MT in March.
Europe
Cumene prices observed a mixed sentiment in the quarter ending 2022. In the month of January and February, prices rose marginally due to increased demand for Cumene from the regional market, Cumene prices rose with an inclination of 3.1% from January to February and settled at USD 1320 per MT in February. Prices began to drop in March due to the sanctions from certain countries that disrupted the trade activities after the Russia- Ukraine war. High inventory levels and a decrease in demand resulted in the price drop in late-Q1 2022.
For the Quarter Ending December 2021
North America
In North America, prices of Cumene after witnessing continuous surge turned feeble due to the seasonal slowdown in demand for derivatives Phenol and Acetone. Traders reported of limited enquiries from buyers as they were already filled with stocks for fetching consumer demand in the near term. By the end of Q1, demand supply gap for Cumene further narrowed following the plummeting demand from solvent industry. No scheduled turnarounds in the region in Q1 further strengthened the supply of various petrochemicals. Amidst ample material availability, Cumene FOB prices in USA averaged at USD 1040 per MT in Q4 2021.
Asia
Cumene prices witnessed a downward trend backed by weaker Propylene markets and dull market dynamics in Asia. Lackluster demand was reflected in the downstream Phenol and Acetone market amid the progression of the final quarter of 2021. Enquiries for Cumene were observed to be low as traders restrained to indulge in any bulk contract purchases in the whole of December. Besides high output of feedstock Benzene amidst the stagnated demand gave manufacturers room to reduce pressure upon buyers. Cumene CFR prices in India were assessed at USD 1355 per MT in December. In late-November, Shell, a renowned petrochemical manufacturer based in Singapore underwent a fire accident due to which the cracker went offline for around week, the accident temporarily caped the supply of Propylene to Changchun’s Phenol and Mitsui’s Phenol unit.
Europe
In Q4 2021, European market witnessed a continuous drop in the prices of Cumene following its increased supply from France and Finland following the resumption of several plant operations. Feeble demand for derivatives Phenol and Acetone sent ripples to the prices of Cumene throughout the quarter. On the other hand, extended energy crises and firm values of crude led to a rise in plant operating cost which restricted manufacturers margins as they were unable to transfer the cost pressure upon buyers due to lackluster demand.
For the Quarter Ending September 2021
North America
The market price of Cumene witnessed a significant hike in the North American region during the third quarter of 2021. In terms of demand, it remained bullish in the US market from the downstream building and construction sectors throughout the quarter. however, surging cost and low availability of upstream raw materials, i.e., benzene and propylene, resulted in a snug supply of the material across the region. Several manufacturing units increased their production rates along with strong inquiries from the Phenol manufacturers. Therefore, the price trend of Cumene witnessed an uprise in the third quarter.
Asia Pacific
In Q3 of 2021, the overall market outlook of Cumene experienced an upward trajectory in the Asia Pacific region followed by consistent demand from the downstream manufacturers. In India, Cumene prices continued to climb up during September, backed by the improvement in demand from the domestic market. Ex-works prices in West India maintained an uptrend by escalating from USD 1489/MT to USD 1762/MT in Q3. Consistent increment in upstream Benzene prices during the quarter pressured Cumene plant operations, which also affected its downstream Acetone and Phenol supplies. Additionally, improved industrial activities in the country with effective decline in new pandemic cases provided firmness in offtakes by downstream users.
Europe
During the third quarter of 2021, some tightness in Cumene supplies was observed in the European region which was backed by bullish demand from the downstream construction and paint and coatings industry. The price chart of Cumene experienced an uptrend in Q3 which was compelled by the tight supply of raw materials and global inflation in upstream Benzene. Demand remained healthy in Q3 from the downstream Phenol producers as offtakes improved QoQ from the end-consumers.
For the Quarter Ending June 2021
North America
In the second quarter of 2021, Cumene supplies in North America improved owing to the pick-up in manufacturing activities after the industry recovered from the devastating impacts of the polar winter storm Uri. Several manufacturing facilities ramped up the production rates along with strong enquiries from the Phenol manufacturers. Downstream demand remained robust amidst seasonal hike in enquiries for Cumene derivatives from the building and construction sector. Taking cues from the global surge in raw material rates, the prices gained in the first half and then stabilized in the latter half of the second quarter. Cumene FOB Texas discussions were heard around USD 1810 per tonne in June.
Asia Pacific
The Cumene demand outlook in Asia Pacific region showcased mixed sentiments during the second quarter of 2021, as several downstream Phenol manufacturing units were on a turnaround during the May-June period. The turnaround of South Korean Kumho P&B line 3 and Mitsui Chemical’s Phenol unit in Japan proportionally impacted the offtakes of the Northeast Asian region. Whereas despite the second wave of COVID in India, the Cumene market remained balanced. Cumene prices in India maintained an uptrend, with price discussions in June hovering around USD 1292 per tonne.
Europe
During the second quarter of 2021, Cumene supplies in the European region remained tight due to turnarounds at several manufacturing facilities in the first half of the quarter. However, several plants resumed operations with better rates in the later half due to rising import demand from the US. Downstream demand observed marked uptrend from the construction sector which led to surge in offtakes from the paints and coatings industry. Cumene prices showed strong gains during the quarter buoyed by the tight supply and global inflation in upstream Benzene.
For the Quarter Ending March 2021
North America
During the first quarter of 2021, Cumene supplies were tight, however during the first half of Q1 the market lost balanced in all prospects due to the severe freeze weather conditions in the US gulf region led to the plant outages is several major facilities, triggering supply shortages of feedstock Benzene. The demand of Cumene slumped amid the damages occurred in plants due to the polar winter storm which shut down several Phenol and Acetone units for several weeks in a row. The spot buyers struggled in strong competition to procure Cumene stocks in domestic as well as overseas market in middle of surged prices in the North American region.
Asia-Pacific (APAC)
The supplies in Asia Pacific, during the first quarter remained tight since several major plants went for maintenance turnaround and were operating at low efficiencies due to feedstock shortages. ENEOS Corp production plant in the Miyagi prefecture, Japan shut down its aromatics unit for several weeks due to the 6.1 magnitude earthquake in February, followed by the low inventories levels after some plants went for turnaround during the Chinese lunar new year holidays. The demand was driven by the restocking practices to fill the inventories, followed by surged consumption from the Phenol-Acetone manufacturers. High demand and sluggish supplies throughout the quarter hiked the prices of Cumene in India which were assessed around USD 1202/ton.
Europe
The supplies of Cumene in the European region remained constrained in first half of Q1, as the several plants reduced their production due to the limited availability of the feedstock as the industrial and commercial activities were restricted amid the lockdown in several region. The supplies were further dented by reduced imports from the USA due to plant outages in several producing facilities. The demand however surged from the downstream sector as the Borealis acetone and phenol unit ended their turnaround during ending of previous quarter. Widened supply-demand gap led to surge in the prices of Cumene throughout the European region.
For the Quarter Ending December 2020
Asia
Cumene supply remained balanced in the fourth quarter of 2020, pressured under subdued demand from the downstream Acetone and Phenol manufacturers. However, prices showed a significant QoQ rise with escalating crude futures and rising optimism over the news of roll-out of Covid-19 vaccines and an anticipated economic rebound in China and India. An upward pressure on the pricing curve was further supported by raw material pass-through following a net increment observed in feedstocks Benzene and Propylene. Ex-Depot prices in India jumped from USD 1049 per tonne levels in October to USD 1090 per tonne levels in December. Supply remained short in South Korea as LG Chem shut its 400 KTPA Cumene plant after its Yosu cracker complex caught fire early in November.
North America
Production rates showed slight recovery from the spate of seasonal Hurricanes and pandemic-induced lockdowns. Outlook remained hindered due to soft demand for the derivative Acetone while Phenol derivatives awaited the much-needed revival in the key automotive and construction sectors. While demand outlook remained stable for largely the entire quarter, Cumene supplies were largely affected by constraints from the upstream refinery-grade propylene (RGP) and Benzene. Prices reported an uptrend on the back of strong Benzene due to a range of factors, including low imports from South Korea and depressed refinery operating rates. Major US producers of Cumene are CITGO, INEOS Phenol, Marathon and Shell.
Europe
As the economic recovery took hold in Europe during Q4, Cumene demand witnessed considerable growth. However, import volumes remained restricted, refraining to show any major movement before the first quarter amid rising fears of extended lockdowns over the new coronavirus variant. Sentiments were risen as the news of vaccine distribution hit the downstream markets. Supply lengthened by the end of the quarter as Borealis declared force majeure at its Phenol and Acetone production site in Finland. With no major turnarounds expected in the Cumene production units during the first half of 2021, the European Cumene market is likely to stay amply supplied in the near term.
