Cumene  

*Millions of pounds cumene (isopropylbenzene). All commercial production of cumene is via catalytic alkylation of benzene with propylene. Historically, solid phosphoric acid (SPA) on an alumina support was used as the catalyst, but since the mid-1990s, zeolite-based catalysts have largely displaced SPA.

Frontier Oil recently closed the 150 million-pound per year cumene unit (and phenol) at El Dorado, Kans., as the first step in increasing gasoline output. Texaco Refining and Marketing originally owned the refinery. In 1997, the plant became part of Equilon, a joint venture between Shell Oil Products and Texaco Refining and Marketing. Frontier bought the refinery in 1999.

Chevron Corporation and Phillips Petroleum Company plan merged their chemical operations into a 50-50 joint venture in 2000. The new entity is called Chevron Phillips Chemical Co.

Sunoco is planning a debottlenecking project at Philadelphia that should add another 150 million pounds of capacity by 2004.

Profile last published 3/22/99; this revision, 5/20/02.

DEMAND
2000: 7.67 billion pounds; 2001: 6.89 billion pounds; 2005: 7.76 billion pounds, projected. Demand equals production less exports (2000: 254 million pounds; 2001: 215 million pounds). Imports are negligible.

GROWTH
Historical (1996 - 2001): 2.9 percent per year; future: 3.0 percent per year through 2005.

PRICE
Historical (1996 - 2001): High, $0.247 per pound, contract, Gulf, tanks, works; low, $0.157, same basis. Current: $0.193, same basis.

USES
Phenol/acetone, 98 percent; alpha-methylstyrene, 2 percent.

STRENGTH
The shift to zeolite-based catalysts in recent years has had a major impact on cumene production. Conversion to a zeolite-based process allows for gains in product purity, overall yield and production capacity, by allowing a much lower benzene:propylene feed ratio to operate. The effect has been to grow the installed capacity base without installing new hardware.

WEAKNESS
Ninety-eight percent of cumene is consumed for the production of phenol and acetone. Therefore, demand for cumene is strongly tied to the phenol market. The phenol and acetone markets, however, continue to be hurt by overcapacity, flat pricing and weak demand. The market is yet another casualty of the global economic downturn as demand for bisphenol-A, the leading use for phenol, is down from reduced demand for polycarbonate and epoxy resins. Despite reduced operating rates, producers are expected to struggle until the economy turns around and demand improves. The recession has led to a decline in demand for polycarbonate and epoxy resins, which both consume bisphenol-A, the leading end use for phenol. Before 2001, US polycarbonate had been enjoying growth of almost 5 percent per year. Phenol demand depends on economic recovery, and consequently, so does cumene.

OUTLOOK
Demand for cumene fell sharply last year, due to the collapse in phenol demand. With the improving economy this year, phenol’s derivatives will begin a new market pull that will translate into a return to growth for cumene. US cumene demand is projected to grow at 3 percent annually, through 2005. With the exception of Sunoco as noted above, the significant cumene capacity additions will take place in the Asia-Pacific region (1.14 billion pounds) and Europe (638 million pounds) during the next three years.