Louisiana (USA)- In the North American market, Cumene pricing dynamics showed fluctuations in  July due to stable demand from the downstream market. Acetone and phenol, the major consumers of Cumene, exhibited weak demand in the domestic market in late July, with Cumene prices ranging between USD 1250-1390 per MT, FOB Louisiana. The US, a significant manufacturer and supplier of Cumene, sees its price dynamics influenced by production costs, energy prices, and demand from the construction and personal care sectors. Propylene, the primary feedstock of Cumene, maintained positive pricing throughout the month, significantly impacting Cumene prices in the US market.

Liquid chemical tanker rates from the US Gulf to Asia have dropped significantly this week, as plant shutdowns and delays from Hurricane Beryl created substantial gaps in available space, according to shipping players. The US chemical industry may see the return of several popular trade and chemical safety programs later this year, with major railroad customers potentially getting their first opportunity to switch carriers if service is poor. With progress in reducing inflation and a cooling labor market, financial markets are focusing on the upcoming interest rate cut cycle, expected to begin in September.

The growing use of Cumene in various applications is expected to drive market growth during the forecast period. Key factors contributing to the Cumene market's expansion include rising demand for phenolic resins and bisphenol-A, along with increasing consumption of acetone and its derivatives. Additionally, heightened use of Cumene in adhesives and sealant chemicals, and a growing consumer preference for high-octane production, are further fueling market growth.

Market dynamics of Cumene also depend on domestic demand volume and the international supply chain. Unusually low water levels in Gatun Lake are causing significant draft restrictions on vessels transiting the Panama Canal, leading to a traffic backlog. We are closely monitoring our vessels' journeys and offer a live vessel tracker to aid in cargo planning. A strike affecting all Atlantic and Gulf Coast ports could severely disrupt containerized US imports and exports, especially if West Coast port workers refuse to handle redirected cargo in solidarity. This hindrance in the supply chain is expected to impact the export volume of Cumene in the overseas market. 

According to ChemAnalyst, Cumene prices are expected to rebound in the upcoming quarter as fluctuations in the propylene market, along with increased demand from downstream sectors such as acetone, phenol, and paints and coatings, may drive prices higher. External factors such as the tight supply chain, container availability, and port workers' strike will play a significant role in impacting the final price range of Cumene in the domestic market.