Xylenes Global Supply Dynamics to 2020 - Middle East and China Witnessing Huge Growth in Production

13 Jan 2011 • by Natalie Aster

GBI Research’s report, “Xylene Global Supply Dynamics to 2020 - Middle East and China Witnessing Huge Growth in Production” is an in-depth report on the supply side of the global Xylene industry. The research presents detailed analysis and forecasts of the major economic and market trends affecting the Xylene supply in the major regions of the world. The report contains capacity and production analyses and forecasts, drivers and restraints, capacity analysis by key feedstock, by production process and by technology, price analyses for ortho, meta and paraxylene and a capacity share analysis for the major producers in all the regions of the world. In addition, it includes capacity and production forecasts for the major countries in all geographies. Overall, the report presents a comprehensive analysis of the global Xylene market covering all of the major parameters.

Global xylene production in 2000 was 21.9 million tons. It grew at a Compound Annual Growth Rate (CAGR) of 5.4% from 2000 to 2009. Production in 2009 was 35.1 million tons.

Global xylene capacity in 2009 was 43.8 million tons. The Asia-Pacific has the largest capacity share, followed by the Middle East. Xylene capacity in the Asia-Pacific in 2009 was 28.2 million tons. Its share in the global capacity was 64.5%. Xylene capacity in the Middle East was 7.1 million tons and its share was 16.1%. North America had a capacity of 5.3 million tons followed by Europe, and South and Central America with a capacity of 2.1 million tons and 1.1 million tons respectively. The share of North America in global xylene capacity was 12.1% followed by Europe with a share of 4.8% and South and Central America with a share of 2.5%.

Global xylene capacity in 2009 was 43.8 million tons. Of this capacity, 81.1% was based on naphtha as a feedstock. The remaining 18.9% of this capacity was based on natural gas as the feedstock.

The Middle East has the huge advantage of access to low cost feedstock, which makes the production there highly cost effective. China has a large population base and the demand in China is very high. To meet this high demand, China currently imports in large quantities from other countries. However, China itself is also investing heavily in production capacity to meet this demand. Therefore, in both the Middle East and China, production is growing at a very high rate.

In the Middle East, xylene production grew at a CAGR of 8.9% from 2000 to 2009. Xylene production in the Middle East in 2009 was 6.6 million tons. Xylene production in China grew at a CAGR of 15.9% from 2009 to 2020 to reach 5.3 million tons. As a result, the Middle East and China are witnessing a huge growth in production.