US July cumene expected to rise on benzene

HOUSTON (ICIS)–US July cumene contract prices are expected to rise, sources said on Wednesday, tracking higher benzene.

Buyers said they are expecting an increase of 1.0-2.0 cents/lb ($22-44/tonne), as upstream benzene values rose 1.9 cents/lb.

The other key cumene feedstock, refinery-grade propylene (RGP), was down slightly month on month.

US cumene contracts typically track feedstock movements very closely on a month-to-month basis, with adders generally stable.

Although cumene supply was tight in July because of delivery issues, sources said there was no discussion of an increase to adders.

Sources said cumene deliveries to phenol/acetone plants had issues because of high water on the Colorado River, but tightness has eased throughout the month and the market is close to balanced.

Demand has been largely steady, with downstream margins still on the thin side, limiting the incentive for spot production and extra cumene demand.

June cumene contracts were assessed at 26-27 cents/lb on an FOB (free on board) basis.

Major cumene producers include CITGO, Flint Hills Resources, INEOS Phenol, Marathon, Philadelphia Energy Solutions and Shell Chemical.