According to a recent report by Research and Markets, the possibility of plummeting demand in the benzene market is expected to be minimal due to a very high number of end user markets that depend in these derivatives. The fall in demand from one end user industry would not impact the complete demand of benzene derivatives market.
The report indicates that the Asia-Pacific is the biggest market of benzene consuming a significant share of the total consumption in 2012. It is also the fastest growing market compared to the rest of the world.
The consumption patterns of benzene and its various derivatives are continuously showing an upward trend, mainly due to the shift of manufacturing industry to the Asia-Pacific on account of increasing demand and low cost of production. China is the leading country in terms of both production and consumption, while the Indian market despite being small in size, is anticipated to have high potential.
Demand for benzene is currently dominated by ethylbenzene manufacturers that consumed more than half of the total benzene demanded in 2012 and this demand is increasing at a considerable pace due to budding demand for styrenic polymers. Cumene and alkylbenzene manufacturing segments are expected to be the strongest growth areas of benzene in the near future, driven by increased use worldwide.
The report identifies the key factors driving the industry as budding demand in the Asia Pacific region and growth in various end user industries, while rising investments in Saudi Arabia’s downstream sector is identified as a major opportunity in the market. Value chain and plant integration is among the key strategies adopted by various market players to sustain their position in the competitive market.
China Petroleum & Chemical Corporation (Sinopec) and ExxonMobil Corporation are the leading market participants in the benzene market, according to the report. These companies are followed by Royal Dutch Shell, The Dow Chemical Company, JX Holdings, CNPC, Total SA. However, in terms of market development activities Sinopec was the most active player from 2010 – 2013 with a share of 12.7% of the total development activities traced.
Adapted from a press release by Emma McAleavey.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/23072014/benzene-market-to-2018-984/