Global benzene market expected to surpass 46 mln metric tons by 2020

07-Aug-15

The worldwide benzene market is expected to surpass the 46 mln metric tons (MMT) mark by 2020-end, TechSci Research; owing to continuously rising demand from various industries utilising benzene derivatives in their production processes. Shale gas development in the USA has increased ethane availability, which is a light feedstock utilised for cracking. The use of lighter feedstock is restraining the yield of benzene and resulting in a tight supply/demand scenario in the worldwide market, owing to which the market has become extremely competitive and all leading players are making investments in research & development to boost the product’s quality and characteristics. The synthetic rubber industry is recognized as the largest consumer of benzene. Benzene is processed to get such derivatives as ethylbenzene, a precursor to styrene, used to make styrene-butadiene resins, styrene butadiene latex, etc. Ethylbenzene derivatives are principally used within the automotive industry for the production of tyres and other components. Thus, growth in the automotive industry is the key driver of the benzene market. Cyclohexane, cumene and nitrobenzene are other derivatives of benzene, which are primarily utilised for making nylon fibers, protective coatings and detergents, respectively. Geography-wise, APAC is projected to take the lead in the global benzene market up to 2020 as most benzene derivative producers mull over shifting their manufacturing bases to developing nations in the region "With growing application in automotive, paper coatings, electronic appliances and plastics industry, the demand for benzene is continuously increasing. However, the use of lighter feedstock for steam cracking is gradually resulting in a tightened demand/supply scenario, owing to which global players are either expanding their existing capacities or adding new facilities for production. Global benzene market is anticipated to exhibit promising growth over the next five years on the back of increasing demand worldwide.", said Mr. Karan Chechi, Research Director, with TechSci Research, a research based global management consulting firm