The Global Cumene Market Follows a Negative Trend During August

Continuous fall in upstream Crude prices and the poor demand from the downstream sectors have negatively impacted the Cumene market globally. Furthermore, the drop in buying and selling activities in the international markets is also falling. The European energy crisis and the fear of global inflation influence the Cumene values. 

The deepening energy crisis in Europe resulted in skyrocketing electricity charges, leading them to implement solar energy. The use of solar power has been easing the current situation and not letting the Cumene price increase. Moreover, the limited availability of Natural gas led the European government to force the manufacturing plants to reduce their production, conserve gas, and save the citizens from the upcoming winter. As the production was crippling, the demand from the regional markets was weak, resulting in the declining price trend.

The huge import of Cumene from Singapore and Japan in the Chinese domestic market led to product stockpiling. The price of the imported cargoes was also slumping as the manufacturers were hurrying to sell off the existing products. Additionally, the upstream Crude oil prices were below $100 per barrel, resulting in the declining cost of the feedstock Benzene, which has been pulling down the Cumene market. Also, the purchasing activities from the domestic market remained poor due to the weak consumer demand. Therefore, the price of Cumene in the Chinese market plunged by approximately 2% on 12th August.

The terminal end demand was weak in the USA, which led to the declining price trend of Cumene. The downstream Phenol and Acetone market is also showcasing a downtrend in the regional and international markets, affecting the requirement of Cumene. The end-use automotive, construction, and chemical sectors are backing off from purchasing Cumene as they have sufficient product availability.

According to the analysis from the ChemAnalyst team, the Cumene market might gain strength in the coming weeks. Using Crude as an alternative to Natural gas will likely put inflationary pressure on the upstream Crude prices. In addition, the freight charges might skyrocket as the European water level is falling due to the heat. The raw material prices might increase, and the downstream derivatives could regain their strength. An expected rise in the end-use sector's production activities coupled with escalating demand.