The global cumene market is expected to face challenges in the coming months as feedstock costs continue to increase and downstream demand remains flat.
With global crude oil prices pushing up on feedstock benzene and with feedstock propylene prices increasing in the US because of supply tightness and gasoline alkylation values, production costs for cumene are expected to continue increasing.
However, downstream demand for cumene, polycarbonate (PC), nylon, epoxy resins and methyl methacrylate (MMA) – hrough phenol/acetone production – is expected to remain stable to slightly higher, not enough to support the increases in upstream chemical costs.
This is because continued global economic concerns, as well as a soft construction industry in the US, is expected to push consumers to cut back on spending for electronics, automotives and new homes or remodeling projects.
This potential disconnect could lead to volatility in the cumene market, especially as US and European producers look to build up some inventory ahead of the expected shutdown of Sunoco’s 545,000 tonne/year Philadelphia cumene unit in Pennsylvania.