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Global Benzene Market to Grow at a CAGR of 4.5% by 2030

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According to ChemAnalyst report, “Global Benzene Market: Plant Capacity, Production, End Use, Sales Channel, Region, Operating Efficiency, Demand & Supply, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030”, the global Benzene market is projected to grow at a CAGR of 4.5% during the forecast period on account of robust rise in demand for styrene polymers from various end-user industries such as textile, packaging, building & construction, etc. backed by rise in demand for cumene for manufacturing phenol and acetone.

Sudden outbreak of novel coronavirus has exacerbated a sharp decline in 2020 Benzene demand, forecasted to dip by almost 2 per cent globally. Benzene margins are curtailed on both demand and supply side due to indefinite halt in industrial activities because of COVID-19. However, as situation in anticipated to improve with time, Benzene demand would recover during the forecast period picking up speed after 2022. Benzene serves as a key raw material for several downstream products used in a variety of consumer applications. Styrene value chain accounts for about more than 40% share in the global Benzene demand market share owing to popular application of its derivatives in automobiles, paints & coatings, foams and films. Growing consumption from food packaging sector has simultaneously increased downstream demand for polystyrene (PS) and expandable Polystyrene (EPS). Although, demand for food packaging and medical products is still appreciable, a collapse in consumption of fuel from the hard-hit transportation sector has further weighed over the Benzene demand. In addition, growth in demand of other derivatives like acrylonitrile-butadiene-styrene, polycarbonate etc. would also support the global Benzene demand during the forecast period.

Pressured crude values due to coronavirus pandemic, eventually resulting in OPEC and Russia price war and crude supply glut have contributed to lower prices in downstream markets. Global Benzene prices were further hammered due to poor demand from end user industries such as automotive and aerospace due to undue halt in economic activities. April Benzene contract prices plunged 11-year low to around $410 per tonne, witnessing a drop of over 50% from March, as crude values continued to weigh heavily on spot Benzene prices. However, Asia’s Benzene market turned towards recovery in early May, due to firmer crude and demand pick up after China resumed industrial operations post a successful battle against novel coronavirus. FOB Korea Benzene prices rose approximately by $24/ tonne in the first week of May 2020.

Royal Dutch Shell Plc., China National Petroleum Corporation (Sinopec), Saudi Basic Industries Corporation, ExxonMobil Corporation, JX Holdings, Inc., GS Caltex, Haldia Petrochemicals Limited, Reliance Industries Limited, Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited etc., are some of the leading players operating in the Global Benzene market. Several companies are looking forward to capacity expansions and technological advancements to get a strong foothold in the global Benzene industry. Recently, China’s CNOOC Huizhou Petrochemical Company Limited (CHPCL) has opted for Axens’ ParamaX Technology Suite for expanding its high-purity aromatics production capacity to 3 million tonnes per year. Axens’ second generation, ParamaX Suite of technologies would enable CHPCL to ensure cost-effective production of Benzene and para and mixed xylenes from aromatic-rich reformate and pyrolyzed gasoline.

Regionally, the global Benzene market has been segmented into various regions including Asia-Pacific, North America, South America, Europe, and Middle East & Africa. According to ChemAnalyst report, “Global Benzene Market: Plant Capacity, Production, End Use, Sales Channel, Region, Operating Efficiency, Demand & Supply, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030”, Asia-Pacific region is the leading region in terms of global Benzene demand during 2015-2019 and is likely to lead the market during the forecast period. This is strongly attributed to huge expansion and technological investments in the petrochemical sector of countries like Japan, India and China. Moreover, China being the biggest ABS market in the world signals a strong surge in its Benzene-derivatives demand in the forecast period despite substantial slowdown in its economy.

“APAC region is anticipated to strongly drive the global Benzene demand during the forecast period. This would be supported by China’s increasing appetite for chemicals and expansion of its inter-regional and international trade flows during the forcat period. Moreover, markets in India and China offer a vast potential to styrene monomer (SM) volumes which holds a significant portion of global Benzene demand. However, Benzene & its derivatives are strongly exposed to the fluctuations in crude oil market. Sudden crash in crude prices has squeezed the margins of global Benzene players and hence near-term price outlook seems bearish till crude oil prices recover to their pre-pandemic levels. Increased players venturing into investments in the Polystyrene and Benzene derivatives sector would help Asia’s aromatics industry dash towards a new growth in the next 6 years.” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm promoting ChemAnalyst.

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