Recent over-heated investments in the polyester industry exerted pressure to expand upstream feedstock capacity. The current demand for paraxylene far exceeds the supply in the domestic market. China's net import of paraxylene in 2004 reached over 1.1 million tons, almost 38% of total apparent domestic consumption of 2.9 million tons.
Demand growth for PX is estimated to average over 18% in the next several years. To benefit from the lucrative situation, domestic and overseas investors have invested in paraxylene production. However, paraxylene expansion in China might encounter the bottleneck of strained naphtha supply. It is estimated that 5.5 million tpa polyester capacity added by 2007 will enlarge the domestic paraxylene demand to 1.65 million tpa, which is far beyond the expected reliable supply capacity of 500,000 tpa of naphtha in the same time. China's intense bottlenecked naphtha supply could hamper any new projects of paraxylene.
18-Oct-05 
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