Cumene Market Overview and Its Rising Trends

This blog contains detailed information on the cumene production process as well as pricing trends, market drivers, regional analysis, key players, and recent developments.

Cumene: Definition

Cumene is a chemical compound also known as isopropyl benzene. Cumene has the chemical formula C9H12 and a melting point of 152 °C. Its IUPAC name is (1-methylethyl) benzene. It is a petrochemical and aromatic hydrocarbon. It is flammable by nature. It is made up of a benzene ring and an isopropyl replacement.

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It has an aroma similar to petrol and no discernible colour. Cumene has a molecular weight of 120.19 U. It is transformed into cumene hyperoxide before it may be used in industry. It is also used in the manufacture of phenol and acetone. It has a boiling point of 152.4 °C and a density of 862 kg/m3. It is found in crude oil and refined fuels.

Cumene Production Process

• From Friedel–Crafts Alkylation Process: Cumene is produced by the Friedel-Crafts alkylation process. Propylene and benzene are alkylated in the presence of solid phosphoric acid on zeolite, alumina, and AlCl3 supports this technique.

Cumene Price Trend

Asia Pacific

Cumene prices have recently plummeted in the Asia Pacific market. This is due to a drop in the price of feedstock benzene, as well as a slowdown in downstream demand from the phenol and acetone sectors. Crude oil prices began to fall after creating havoc.

The price of benzene fell due to a huge drop in crude oil, which further impacted cumene production cost. Logistics constraints imposed by the Covid lockdowns also had an impact on market sentiment.

North America

Cumene prices have recently continued to fall in North America. This is due to a drop in demand from downstream value chains such as acetone and phenol, as well as a drop in consumer attitude caused by the likelihood of a recession.

Low feedstock benzene costs as a result of a significant drop in WTI crude oil prices also influenced market sentiment. This was followed by a drop in natural gas prices, which reduced the cost of feedstocks and the overall cost of manufacturing cumene in the region.

Prices fell further as a result of cheap cumene manufacturing costs and weak demand.

Europe

Cumene prices in Europe had a mixed trend. Prices decreased in October, then climbed in November before falling again in December. Factors contributing to this trend include a drop in benzene prices, as well as cheaper imports from the Asia-Pacific region, as freight expenses on the Asia-European routes dropped dramatically.

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Consumer confidence deteriorated significantly as a result of recessionary worries, resulting in lower demand dynamics from the downstream Acetone, Phenol, and other value chains.

Market Drivers

• Cumene has an established market share because it is one of the most widely used compounds in a variety of sectors. It is mostly used as an ingredient in the manufacture of paints, enamels, lacquers, and other similar products.
• It is also the primary source of phenol and acetone, making it an important organic molecule used in a variety of chemical processes and industries. It maintains global demand for cumene. Furthermore, it occurs naturally in both petroleum and coal tar.
• Cumene has a large market demand in the plastics industry as well. It acts as an intermediary stage in the synthesis of a number of plastic goods via a chemical reaction.

Regional Outlook

• The cumene market is divided into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. The Asia-Pacific region dominates both cumene consumption and production. The automotive industry is booming in developing countries such as China, India, and South Korea.
• The introduction of new items in the cosmetics and consumer goods sectors is also expected to aid cumene market growth. Growing technological advancement in North America is hastening market expansion.
• The well-established automotive sector and rising demand for lightweight vehicles are driving the cumene market. Furthermore, the expansion of the cumene business is expected to be aided by Europe's established vehicle market.
• Consumption of cumene is increasing throughout Latin America, the Middle East, and Africa as a result of growing urbanisation and rising consumer disposable income. The easy availability of raw materials such as natural gas and crude oil is also expected to help the cumene sector grow.

Key Market Players

• Royal Dutch Shell Plc
• Exxon Mobil Corporation
• BASF SE
• Sumitomo Chemical Co. Ltd
• The Dow Chemical Company

Recent Development

• August 2022: Formosa announced the expansion of its cumene and phenol factories in Ningbo, China, in August 2022, with a lummus technology licence and engineering design. The expansion expanded the capacity of an existing 450 kMTA cumene and 300 kMTA phenol plant by 600 kMTA cumene and 400 kMTA phenol.

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