Worldwide demand for Naphtha to restore by 2011

12 Feb '09

2 min read

It is reported that during the naphtha forum held in Singapore last Friday, experts from a consulting firm Poten & Partners, predicted that global demand for petrochemical products may slightly rebound in 2010, while demand for naphtha will be restored in 2011.

The company, in mid-2008, had projected that petrochemical demand between 2007-2011 would grow four percent annually. However, due to global economic recession, demand dropped significantly in the fourth quarter of 2008, with actual consumption reduced by 20 million tons.

Although petrochemical demand will possibly and slightly recover, the consumption is expected to fall by 50 million tons, against the expected usage of 275 million tons. Against the demand of 290 million tons in 2007, the global demand in 2009 is expected to be 270 million tons.

While global demand for petrochemical products will recover in 2010, demand of naphtha is expected to remain under pressure, because of increased use of ethane, liquefied petroleum gas (LPG) and alternative materials for oil refining.

Naphtha demand in 2010 is expected to be 190 million tons, still below 240 million tons in 2007. Although demand for naphtha may rebound to 220 million tons in 2011, it will still be less the demand in 2007. Experts point out that low-cost ethylene raw material like ethane, will be more popular than naphtha, in the Middle East.

Fibre2fashion News Desk - China

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