Spot cumene prices continued to move higher as production costs were estimated as high as 465 cents/gal this week on the back of continued gains in propylene and benzene.
Spot refinery grade propylene (RGP) traded for December this week at 67 cents/lb, and was up nearly 16 cents/lb from early December. The increases were due to outages at Shell and Petrologistics. Additionally the market was tightened as a third supplier was heard to be producing off-spec material.
Cumene prices have also been bolstered by rising spot benzene, which was poised to touch a 27 month high on stronger January values. January benzene bids were seen as high as 380 cents/gallon DDP USG while offers were heard as high as 400 cents/gallon FOB USG. Benzene values have been supported by rising energy prices and tightness in the prompt market due to delayed imports.
The gains in both propylene and benzene have resulted in an approximately 74 cents/gal increase in cumene prices since the beginning of the month. The gains were putting upward pressure on the entire chain and downstream acetone makers were heard to have nominated a 10 cents/lb increase on January contracts. The December acetone contract settled at $910/mt (41.27 cents/lb).
--Kevin Allen
Spot refinery grade propylene (RGP) traded for December this week at 67 cents/lb, and was up nearly 16 cents/lb from early December. The increases were due to outages at Shell and Petrologistics. Additionally the market was tightened as a third supplier was heard to be producing off-spec material.
Cumene prices have also been bolstered by rising spot benzene, which was poised to touch a 27 month high on stronger January values. January benzene bids were seen as high as 380 cents/gallon DDP USG while offers were heard as high as 400 cents/gallon FOB USG. Benzene values have been supported by rising energy prices and tightness in the prompt market due to delayed imports.
The gains in both propylene and benzene have resulted in an approximately 74 cents/gal increase in cumene prices since the beginning of the month. The gains were putting upward pressure on the entire chain and downstream acetone makers were heard to have nominated a 10 cents/lb increase on January contracts. The December acetone contract settled at $910/mt (41.27 cents/lb).
--Kevin Allen
