Posts | Comments

The North American Xylenes Market Is Set to Increase at a CAGR of 5.6% per Year until 2023

Contact Us
Williams & Marshall Strategy
Hill Tower Center, 76A, James Boucher blvd., 1407
Phone:+359 888 82 99 12

According to a recently published report about the North American xylenes market, it was equal to 4.793 million tons in 2013. The largest country market within the region was the United States, which in 2013 accounted for a share of 89% of the total in volume terms. Until 2023, the North American market is forecast to reach around 5.7 million tons, thus growing at a CAGR of about 5.6% per annum in the period 2018-2023. This is a significant increase, compared to the decline at a CAGR of around 4% per year, registered in 2013-2017.

The analytical research projects that the North American production of xylenes is likely to grow to around 5.7 million tons in the medium term. Upward dynamics of the overall installed production capacities in the region and their annual average utilization rates are expected. In addition, the market is forecast to remain relatively balanced in terms of supply and demand, also showing moderately upwards dynamics in the medium term.

In recent years, the growing considerations over the sustainability in combination with the enforced governmental and environmental regulations have prompted the development of the bio-based chemicals and materials. In fact, the extensive use of bio-based plastics is one of the leading trends on the market. As a result, the bio-based paraxylene is gaining popularity on the global market. Another important trend is linked with the demand-supply gap in the paraxylene market. Over the past few years, the gap broadened due to the increasing application of paraxylene in various other applications such as PET bottles. At the same time, however, because of the complicated manufacturing process associated with paraxylene, the production was tight with a limited number of manufacturers.

Another major trend for the last several years is connected with the substantial investments in mixed xylenes capacity, primarily for use in paraxylene. What is more, the investments have been located mainly in regions with a high concentration of polyester capacity, such as Northeast Asia. Due to the large new capacity reserves of both mixed xylenes and paraxylene in Asia, the US xylenes market has observed a major shift in the country’s position in global trade flows. One of the distinct trends for the European market is the benefit from a prolonged golden age for naphtha crackers amid low oil prices. The vigorous downstream demand for derivatives such as terephthalic acid, phthalate anhydride, solvents and others led to strong xylene margins sustained throughout 2017.

Leave a Reply