September 2024: Cumene market dynamics continued to decline in the European market wavered by the weak demand outlook for the Cumene from the downstream sectors such as phenol, bisphenol and other solvent sectors. Cumene producers and retailers in the European market have refrained from raising prices due to limited demand from end-use manufacturing sectors. With a lower volume of inquiries from these industries, suppliers chose to maintain current pricing levels to avoid further dampening market activity. This cautious approach reflects the ongoing efforts of Cumene manufacturers to balance supply and demand while navigating subdued market conditions.

In September, manufacturing activity across the eurozone experienced its sharpest decline of the year, reaching a nine-month low, as per recent industry data. Indicators such as production output, new orders, employment, and purchasing activity of petrochemicals, Cumene and other globally traded commodities showed faster rates of decline.

The drop in output was attributed to worsening demand conditions, which continued to deteriorate during the month. Germany saw a deepening industrial slump that overshadowed gains made by other economies, such as Spain, where growth momentum in manufacturing offered some relief but had little impact on the broader eurozone trend.   Conversely, the UK manufacturing sector demonstrated resilience in September, showing solid growth amid a more favorable economic environment.

This divergence highlights the differing economic trajectories of the eurozone and the UK as manufacturing continues to play a critical role in both regions.

Cumene manufacturers, retailers and traders can also witness the change in the price and the market dynamics. The forthcoming EU transshipment ban on Russian LNG may already be leading to an unexpected outcome: increased imports of liquefied natural gas into the EU. However, experts caution that it is still too early to draw conclusions, urging a coordinated EU-wide strategy instead of isolated actions by individual member states.

The production cost of Cumene is significantly impacted by the price of propylene, its primary feedstock, in the domestic market. As a critical chemical building block, propylene is subject to frequent global price volatility, often driven by shifts in crude oil markets. These fluctuations in oil prices directly affect the cost structure for manufacturers of Cumene, influencing profitability and pricing strategies. According to projections from ChemAnalyst, Cumene prices in the European market are expected to remain stable in the near term. This stability is attributed to steady production rates and balanced demand levels, helping to mitigate the effects of any potential raw material price swings. However, industry experts continue to monitor the situation closely, as any significant changes in propylene or crude oil prices could disrupt this balance and may impact Cumene prices.