Paraxylene Market across the Globe

By: Arpan Kharva

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

paraxylene: Demand-Supply Gap Analysis (2014)

Source: Fibre2Fashion Analysis, Secondary Research

 

Asia being the biggest consumer of Paraxylene had the biggest demand supply gap of -3,800 KTin 2014, as shown in the figure above. In 2014, China; accounting for 47% of global Paraxylene consumption, was the major contributor to this demand supply gap in Asia. China mainly imported Paraxylene manufactured in the Middle East to fulfil its deficit. Asia being one of the fastest growing regions in the World attracted majority of the Paraxylene manufacturers to expand their operation in the region to gain from the growing demand in the region, especially in China.

Global paraxylene CAPACITY, BY Region, 2011-2020 (Kilo tonnes)

 

Region

2011

2012

2013

2014

2015

North America

4,600.0

4,750.0

4,850.0

4,950.0

5,000.0

South America

250.0

250.0

250.0

250.0

250.0

Europe

2,400.0

2,600.0

2,600.0

2,650.0

2,700.0

Middle East & Africa

3,800.0

3,950.0

4,100.0

4,500.0

4,800.0

Asia I Far East

27,000.0

28,000.0

29,000.0

33,000.0

35,500.0

World

38,050.0

39,550.0

40,800.0

45,350.0

48,250.0

Source: Fibre2Fashion analysis, Secondary research, Primary interviews

 

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)

Source: Fibre2Fashion Analysis, Secondary Research

 

 

 

 

Paraxylene Key Capacity additions

Year

Country

Company

Capacity (KT)

1Q13

Korea

Cosmo Oil/ HC Petrochem, Daesan

800

3Q13

China

Tenglong Aeromatic ( Dragon), Zhangzhou

800

3Q13

SE Asia

TPPI, Indonesia

550

4Q13

China

Tenglong Aeromatic ( Dragon), Zhangzhou

800

4Q13

China

Sinopec Hainan Petrochemical, Hainan

600

2013

Total

 

3,550

1Q14

China

Petrochina Sichuan, Sichuan

650

1Q14

Middle East

Aramco Total ( SATORP), Saudi Arabia

700

2Q14

Korea

SK Energy � JX Nippon, Ulsan

1,000

3Q14

Korea

SK Global Chemical, Incheon

1,300

3Q14

Korea

Samsung Total, Daesan

1,000

3Q14

India

OMPL, Mangalore

920

3Q14

SE Asia

Jurong Aeromatic, Singapore

800

4Q14

Middle East

JSC KazMunayGaz, Kazakhastan

495

2014

Total

 

6,866

1Q15

India

Indian Oil Corporation, Vadodara

370

2Q15

China

Zhongjin Petrochemical, Ningbo

1,500

2Q15

SE Asia

PTT Global Chemicals debottlenec, Thailand

100

3Q15

India

Reliance Industries ltd, Dahej, Gujarat

1,800

4Q15

Middle East

Petro Rabigh

1,350

4Q15

Korea

GS Catex � Taiyo oil � Showa Shell, Yeosu

1000

2015

Total

 

6,120

2Q16

SE Asia

Petro Viet-Indemitsu, Vietnam

370

3Q16

SE Asia

Hengyi, Brunei

1,500

4Q16

Middle East

Aramco

100

4Q16

Middle East

Taccaamol

1,400

2016

Total

 

4,800

Source: Fibre2Fashion analysis, Secondary research