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The North East Asian Xylenes Market Projected to Reach 34.1 Million Tons By 2023

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According to a recently published report about the North East Asian xylenes market, it was equal to 25.779 million tons in 2013. The largest country market within the region was China, which in 2013 accounted for a share of 38% of the total in volume terms. Until 2023, the North East Asian market is forecast to reach around 34.1 million tons, thus growing at a CAGR of about 2.4% per annum in the period 2018-2023. This is a slight slowdown, compared to the growth at a CAGR of around 3.5% per year, registered in 2013-2017.

The analytical research projects that the North East Asian production of xylenes is likely to grow to around 33.8 million tons in the medium term. Upward dynamics of the overall installed production capacities in the region are also expected. On the other hand, their annual average utilization rates are expected to decline. 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.

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