Paraxylene Market across the Globe

Paraxylene is primary raw material used for manufacturing of PurifiedTerephthalic Acid (PTA) and Dimethyl-Terephthalate (DMT). Both, PTA and DMT areused in manufacturing Polyethylene Terephthalate (PET) saturated Polyester polymersand production of Polyester staple fibre and filament. The global production ofParaxylene in the year 2014 is estimated at 38,757.0KT and the consumption isat the level of 39,400.0KT. The total registered trade of Paraxylene is estimatedto be 54,494.5KT in the year 2014.

paraxylene: Demand-SupplyGap Analysis (2014)

Asia being the biggest consumerof Paraxylene had the biggest demand supply gap of -3,800 KTin 2014, as shownin the figure above. In 2014, China; accounting for 47% of global Paraxyleneconsumption, was the major contributor to this demand supply gap in Asia. Chinamainly imported Paraxylene manufactured in the Middle East to fulfil itsdeficit. Asia being one of the fastest growing regions in the World attractedmajority of the Paraxylene manufacturers to expand their operation in theregion to gain from the growing demand in the region, especially in China.

Global paraxylene CAPACITY, BY Region,2011

In the year 2014, the global Paraxylene surplus production was 6,866.0KT, this can be attributed to new Paraxylene capacity additions in the Middle East and China. Installed Paraxylene capacity is expected increase at a highest rate in Middle East due to lower cost of production. There is a large build-up of fresh Paraxylene capacity lined up in China along with Middle East and NE Asia, this fresh capacity increase is expected to become operational by the end of 2015, which will push down global operating rates to typical cyclical lows of 82%.

Asia Paraxylene supply vs Demand Growth (2011 - 2015)

Paraxylene Key Capacity additions

Source: Fibre2Fashion analysis, Secondary research