The global cumene market to grow at a CAGR of 4.25% during the period 2017-2021.
Global Cumene Market 2017-2021, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.
According to the report, one driver in the market is rise in demand for phenol and its derivatives for various applications. The largest consumer of phenol is BPA. Though there are health and safety-related issues associated with the use of BPA, it is still used as a key ingredient for the production of polycarbonate and epoxy resins. Another major application of phenol is its use in the production of phenol-formaldehyde resins. These resins are primarily used in wood adhesives for binding the layers of plies in exterior plywood.
One trend in the market is increased use of cumene as a blending component in gasoline pool. The major refinery products manufactured using the product blending technique are gasoline, heating oils, jet fuels, and diesel fuels. The objective of product blending is to assign the available blending components in a way that will ensure that all the product demands and specifications are compatible at the least cost and to produce products to maximize the overall profit.
Further, the report states that one challenge in the market is fluctuations in crude oil prices. Cumene is manufactured by reacting benzene and propylene. Fluctuations in the price of benzene due to changes in crude oil prices directly impact the production cost of cumene.
Many factors influence crude oil prices, such as factors related to the trading and financial markets and physical market factors. The eight major factors that influence crude oil prices are Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC supply disruption, Organization for Economic Co-operation and Development (OECD) inventories and WTI futures spread, change in Saudi production and price of West Texas Intermediate (WTI) crude, commodity index, composition of the Dow Jones Union Bank of Switzerland (UBS) commodity index, average daily open interest in crude oil futures, world oil consumption, and world GDP.
Key Market trends
Alternative phenol production processes using catalysts
Increased use of cumene as a blending component in gasoline pool