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The North East Asian Phthalic Anhydride Market Is Forecast to Grow at a CAGR of 2.5% per Year

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According to a recently published report about the North East Asian phthalic anhydride market, it was equal to 2.089 million tons in 2013. The largest country market within the region was China, which in 2013 accounted for a share of 80% of the total in volume terms. Until 2023, the North East Asian market is forecast to reach around 2.5 million tons, thus growing at a CAGR of about 2.5% per annum in the period 2018-2023. This is a slight increase, compared to the growth at a CAGR of around 0.9% per year, registered in 2013-2017.

The analytical research projects that the North East Asian production of phthalic anhydride is likely to grow to around 2.8 million tons in the medium term. Upward dynamics of the overall installed production capacities in the region and their annual average utilization rates are also 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.

The consumption of phthalic anhydride is highly dependent on the growth of PVC, which is sensitive to general economic conditions as it is consumed mainly in the construction and automobile industries. Due to the increasing demand for PVC and DOP in the construction and automobile industries, the global phthalic anhydride market has been also growing over the last several years. The increasing infrastructure expenditure is another reason, which led to higher utilization of phthalic anhydride in plasticizers and hence resulted in higher demand for the chemical.

Regionally, in India PA demand has been growing, owing to the government’s increased focus and expenditure on infrastructure and housing development. In North America, there has been another change, linked with BASF’s decision to exit the market in 2015. In October, the company announced it discontinued production of phthalic anhydride at its Pasadena, Texas, US, plant. In Europe, the market development usually depends primarily on availability of both phthalic anhydride and ortho-xylene and the feedstock prices. In addition, there is geographical growth in Europe, particularly for the polyester products as the resins and plasticizers are now more mature markets.

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