European Cumene Market Declines Amidst Weak Demand and Labor Strikes

Antwerp (Belgium): The Cumene pricing dynamics in the European market continued to move downhill amidst the declining demand for the commodity from the downstream and Cumene derivatives sectors such as phenol, acetone, MMA, Phenolic resins, and many more. The decline in the Cumene prices can be directly linked to the deteriotating demand sentiment. The Cumene manufacturers and retailers in the European market constrained themselves from increasing the prices as the number of inquiries was limited from the end-use manufacturing units.

Moreover, the supply chain for Cumene in the European market is restricted as the workers are planning to execute the strike. The employees are concerned because their employers have refused to make any concessions, instead citing their economic difficulties and competition with foreign ports. As of the week ending June 14th, Cumene market prices were reported at USD 1241 per metric ton, CFR Antwerp, with a decline of 3.1%.

In France, labor unions representing dockworkers and other port employees have staged several one-day strikes and numerous four-hour work stoppages this month in opposition to pension reforms that have raised the official retirement age.

More 24-hour strikes are planned for June 21 and 25, along with four-hour walkouts on three days each week at different European ports. The strikes could continue into July if the unions do not receive a satisfactory response from the government to their demands.

Meanwhile, the European gas storage is expected to reach full capacity by the end of September 2024 and remain at that level until the end of October 2024, with an additional 4 million tonnes per year of floating storage also accumulated.

The demand for Cumene from the construction sector remained on the lower edge and according to the most recent Statistical Report from the European Construction Industry Federation (FIEC) compiles data about the sector across the region and by individual countries. This report arrives during a challenging period for European construction, with housebuilding predicted to decline by 5.7% in 2024, following a 2.6% decrease the previous year. Construction Briefing has summarized the comprehensive report into four charts to provide an overview of the performance of the European construction industry.

The cost of producing Cumene is largely influenced by the price of its main raw material, propylene, in the domestic market. As a key chemical commodity, propylene often experiences global price fluctuations driven by changes in crude oil prices. According to ChemAnalyst forecasts, Cumene prices in the European market are anticipated to remain stable in the coming weeks, supported by consistent production levels and moderate demand.