The US cumene contract price increased by 35% in the first quarter of 2012 from the fourth quarter of 2012.
US cumene prices ended April at 65-67 cents/lb ($1,433-1,477/tonne, €1,103-1,137/tonne), up by 17 cents/lb from January’s contract of 48-50 cents/lb.
Surging feedstock benzene and refinery-grade propylene (RGP) costs were the biggest reason for higher cumene prices.
Premiums over feedstock costs for cumene were steady during the quarter, as lower operating rates at downstream phenol-acetone plants were balanced out by expected supply shortages.
Sunoco announced that it would permanently shut down its Philadelphia refinery in Pennsylvania, including a 545,000 tonne/year cumene unit, in July.
Sunoco then announced that the deadline had been extended because the company entered talks with The Carlyle Group to form a joint venture to keep the refinery running.
Cumene supply was slightly long during the quarter, but buyers looked to build some inventories in case Sunoco shut down.
Updated to mid-May 2012