Prices fell for the second consecutive month to 61–63 cents/lb ($1,345–1,389/tonne, €928–958/tonne) FOB (free on board), as assessed by ICIS.
This pushes cumene prices to their lowest level since January 2011.
The main drivers for the drop in prices, which are typically formula-based, are the declines in the July benzene contract and spot values for refinery-grade propylene (RGP).
The July benzene contract settled at $3.69/gal, a drop of 37 cents/gal, because of weaker energy values. Spot RGP prices ended June in the 67.5-68.0 cents/lb range, mostly on improved supply and lower demand.
Buyers said demand for cumene is flat as export opportunities for key downstream product phenol are becoming more limited.
However, buyers are still looking to rebuild inventories after the severe shortage of cumene in the first quarter as "getting caught up is not the same as being caught up", one buyer said.
Supply has "returned to normal", said another buyer.
Major US cumene producers are CITGO, Flint Hills Resources, Georgia Gulf, Shell Chemical and Sunoco.
($1 = €0.69)
