US August cumene contracts settled higher

02 September 2016 23:01 Source:ICIS News

HOUSTON (ICIS)--US August cumene contracts moved up on Friday, tracking increasing feedstock costs.

August contracts were assessed up 3 cents/lb ($66/tonne) at 31-32 cents/lb on an FOB (free on board) basis.

Cumene contracts are typically strongly tied to same-month moves for feedstock benzene and refinery-grade propylene (RGP).

Both feeds moved up in August, although the late-month increase in RGP is likely to be felt for cumene producers in September as well.

Cumene producers are expected to have little trouble passing higher costs down to phenol/acetone producers, as demand in that sector is steady.

Supply of cumene is also balanced to healthy, with sources saying there is no supply overhang, but that rates could ramp up if needed.

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

By John Dietrich