US formula-based cumene prices for August increased by 3% during the week ending 5 August, tracking higher feedstock costs and stable demand.
August contract prices increased by 3 cents/lb ($66/tonne, €47/tonne) from July levels, a buyer said.
The biggest driver pushing cumene prices higher was the increase of 44 cents/gal in the US August benzene contract.
Demand for cumene for production of phenol remains strong. With margins for phenol strong because of rebounding export values in China and strong domestic consumption, phenol producers are running full-out, requiring as much cumene as possible.
Acetone margins are shrinking, sources said, mostly because of weaker demand domestically and for exports. However, the fall in acetone margins is outweighed by phenol margins, so producers have not been encouraged to lower production rates, keeping cumene demand strong.
Supply of cumene is healthy, sources said, and fully restored after the shortage of the first quarter.
Cumene exports are limited by the lack of excess supply and the lacklustre demand, but deals were heard within the posted range.
Feedstocks
Benzene values fell to 405-415 cents/gal from 430 cents/gal a week earlier, tracking lower energy values from the sagging US economy,
Spot prices for refinery-grade propylene (RGP) were flat during the week, moving higher at the start before tumbling along with weaker energy values at the end of the week.
($1 = €0.71)
This week on ICIS ( www.icis.com ):
05/08/2011 15:53 Braskem to explore US propylene supply options
05/08/2011 14:43 US employment improved in July with 117,000 new jobs added
04/08/2011 21:11 US August cumene prices increase by 5% on higher feedstocks
04/08/2011 18:52 US weekly chemical railcar traffic rises 4.9% year on year
04/08/2011 17:12 INSIGHT: Negative numbers raise renewed recession risks in US
