Louisiana (USA)- Cumene prices remained steady compared to the previous week, with manufacturers carefully managing production costs in response to demand from various end-use manufacturing sectors such as Methyl Meth Acrylate (MMA), Bisphenol A, phenol, acetone, and other solvents. One of the key factors influencing Cumene prices is the stability in benzene prices in the domestic market. By the week ending April 19th, Cumene market prices were recorded at USD 1440 per metric ton, Free on Board (FOB) Louisiana, reflecting stability and manufacturers' confidence in receiving increased inquiries for Cumene in the US market in the upcoming weeks.

The current low inventory is advantageous for the sellers, despite a slight decrease in mortgage rates. High home prices are dissuading potential buyers, and further rate reductions could stimulate market activity. This is particularly relevant for the paints, pipes, and coatings sector, as a decrease in demand for MMA might lead to a corresponding drop in Cumene demand in the US market. Nonetheless, given the historically high prices and limited inventory, many potential buyers and sellers are exercising caution in the Cumene market.

The slight increase in Cumene inventories is due to several US refineries restarting production recently. Many of these refineries had been shut down due to winter and maintenance issues, which affected the energy supply and increased the production cost of Cumene. However, in the past month, increasing production rates from the manufacturers have resulted in rising inventories and strengthening supply dynamics.

Consumer prices in the US notably increased in February, primarily due to higher gasoline and shelter costs. This indicates some persistence in inflation, reducing the likelihood of a Federal Reserve interest rate cut before June. However, the Labor Department's report, showing a second consecutive month of stronger inflation, suggests a continuing trend of disinflation. Americans worried about inflation found some relief in lower prices at supermarkets and for medical expenses.

The production cost of Cumene is closely tied to the price of its raw material, propylene, in the domestic market. Propylene, a crucial chemical commodity, often sees price fluctuations globally due to changes in crude oil prices. As per ChemAnalyst, the Cumene prices in the US market will stay slow and steady in the coming weeks, buoyed by steady demand and production levels. Meanwhile, the demand dynamics are expected to remain stable in the upcoming weeks which will keep the steady demand pressure on the Cumene prices in the US market.