Global consumption of benzene projected to exceed 54 mln tons by 2012

Global benzene capacity continues to witness steady expansions, predominantly in eastern parts of the world, especially Asia and the Middle East as per a report by Global Industry Analysts, Inc. The expected capacity expansions, when on stream, is expected to offer a much awaited respite from the hitherto imbalance between demand and supply. World consumption of benzene is projected to exceed 54 million metric tons by 2012, supported by demand from developing nations. Demand for benzene continues to be driven by the gradual phasing out of MTBE. Several major refiners, who were earlier using MTBE, have shifted towards aromatics usage including benzene. Increased use of benzene in the production of styrene is additionally driving up demand in the world market. A majority of trading countries depend on imports to balance their requirements, rather than making incremental increases in domestic manufacturing capacities, thus leading to demand and supply imbalances in the international marketplace. For instance, North America, in general and the US in particular resort to large imports of benzene to meet domestic demand. Regions poised to emerge into key exporting bases for benzene, in the upcoming years, include - Asia, Africa, and South America. Asia (excluding Japan), and Europe are poised to dominate the world benzene market through 2011. China, Thailand and Saudi Arabia are forecast to lead global growth, with majority of capacity expansions scheduled for installation between the period 2007-2011. Increase in pygas production, and gasoline consumption will further spur the demand for benzene in key Asian markets. The surging gasoline consumption in Asia will stimulate benzene production as a co-product from reformate. While, in the Middle East, the limited availability of ethane will result in cracking higher amounts of condensates and naphtha yielding abundant pygas and benzene. Consumption of benzene in the Alkylbenzene end-use market is the highest in Asia-Pacific with consumption projected to reach 717 thousand metric tons by the year 2015. Benzene demand in North America, Europe and Japan is anticipated to grow moderately through the years 2011 to 2015. Sustained level of demand for key chemical derivates such as nitrobenzene, cumene, and cyclohexane will continue to prop up growth in these markets. Consumption of benzene in the ethylbenzene end-use market accounts for a 54% share of the global benzene market estimated in the year 2008. Nitrobenzene and ethylbenzene are projected to record faster growth rates in South and Central America. Key players dominating the global benzene market include BP Plc, Compania Espanola de Petroleos SA, ChevronTexaco Corp, Chinese Petroleum Corporation, Chevron Phillips Chemical, Copesul, Deutsche Shell GmbH, Dow Chemical, Lyondell Chemical Company, Exxon Mobil Chemical, INEOS, Maruzen Petrochemical Co Ltd, Mitsubishi Chemical, Nippon Oil Corporation, Total Petrochemicals USA Inc, Saudi Basic Industries Corp, Samsung Total Petrochemicals, Shell Chemical, Showa Shell Sekiyu, and SK Energy Co. Ltd, among others.