World Analysis – Cumene, Phenol & Acetone

Duration: Long-term outlook to 2050

The phenolics chain consists primarily of cumene, phenol, and acetone. Cumene is produced by the alkylation of benzene with propylene. Nearly all cumene produced is utilized to manufacture phenol and its byproduct, acetone.
Phenol and acetone are both feedstocks for producing bisphenol-a (BPA), mainly used to produce polycarbonate (PC) along with other resins and plastics. PC is a high-performance thermoplastic that is often found in applications requiring high-impact resistance and superior aesthetic qualities, such as transparency or precisely controlled coloring. PC can withstand higher-temperature operating conditions than most transparent or aesthetic thermoplastics. Electronics/electrical is the most significant demand segment for PC worldwide, followed by the sheet and film segment. Phenol formaldehyde resin is another critical use for phenol. These resins are used in various applications and were some of the first commercial synthetic resins. On the acetone side, along with BPA, methyl methacrylate (MMA) is a major derivative, as is its use as a solvent in numerous applications such as paints and coatings, pharmaceuticals, and the production of isocyanates. Acetone can also be used as a feedstock to produce ketones and isopropyl alcohol (IPA).

The relationship between phenol and acetone has always been a key element in market dynamics, with producers having to consider the supply/demand balance of both products. Phenol is generally considered the main product; common wisdom says that phenol/acetone production units are operated with phenol demand in mind and that acetone supply must be managed as efficiently (and economically) as possible. This leads to regular cycles in regional and global markets where phenol can be in strong demand with better margin contribution, but acetone length means weakness on that side of the market. Producers will typically sustain operating rates for as long as overall economics allow, but cuts will be made if acetone pricing becomes so weak that margins are eroded. Conversely, when phenol demand drops and price and margins weaken, the subsequent cut in production often creates a much tighter acetone balance and stronger pricing that supports overall economics and sustains the asset’s profitability.

Duration: Long-term outlook to 2050

The World Analysis – Cumene Phenol Acetone provides a comprehensive analysis and key insights into critical market developments as they shape the future outlook for the global Cumene Phenol Acetone market.

The following reports, data files, analytical tools and visualization modules are available online and can be downloaded from our website:

• Direct Access to the Subject Matter Experts
• In-depth exploration of present market strategic insights, recognition of critical challenges, and presentation of our experts’ forecasts and analysis
• Explanatory Notes detailing data sources, methodologies, unit and conversion factors, and World Analysis deliverables.
• Energy and Economy assumptions
• Price, cost, and margin base assumptions forecast and sensitivities analysis, including price assessment methodology and price definitions across all regions.
• Excel data files with standard supply/demand graphics and price forecasts extended to 2050, trade grids with country and regional trade flows Data appendix (Excel) with supply/demand, capacity and trade tables.
• An online dashboard visualization of capacity, supply/demand, trade grids, and price, cost and margin forecasts
• Supply/demand and capacity database access via data browser
• Data Appendix (Excel) with supply/demand and capacity tables
• Capacity by company/shareholder, capacity integration, top producer/consumer and surplus/deficit capacity ranking, and ownership/subsidiary information

Data is provided for the following products:

Supply/demand balances:

• Cumene
• Phenol
• Acetone

Capacity:

• Cumene
• Phenol
• Acetone

This World Analysis contains detailed information on capacities, production, demand, and trade for all significant producing and consuming countries and regions. Although data gathering is essential for understanding history and potential future trends, we believe that the interpretation and analysis of the data is the most valuable information to our clients.

Duration: Long-term outlook to 2050