September 11, 2019

Asia-Pacific: Aromatics Trade Flows and Economics

Stratas Advisors

Aromatics demand in the Asia-Pacific region will grow at a CAGR of 2.03%, increasing from 107.2 MMtpa to 166.7 MMtpa from 2018-2040. In the region, para xylene (PX) demand will be 32.1% of total aromatics demand in 2040. The demand for PX is mainly driven by China with 73.8% of the total PX demand in the region in 2018.

APAC Aromatics Demand through (2018-2040)

 flowchartaromatics91119

China will be major hub for future investment for aromatics capacity. In China, 12 MMtpa (79.5% of APAC region) of PX capacity is announced to be added through 2025. Two mega projects from the Hengli Group and Zhejiang Petrochemical Corp. will alone be able to produce 4.3 MMtpa and 4 MMtpa, respectively, of PX.

Trade Flows

Asia-Pacific will be consuming most of the benzene and para xylene production during the projected period of 2018-2040. In 2018, the benzene consumption was 88% (18.4 MMtpa) of the production, which will increase to 91% (33.5 MMtpa) by 2040. For para xylene, Asia-Pacific will remain a net importer. In 2018, net imports were 1.3 MMtpa, which will increase to 2.9 MMtpa by 2025. Thereafter, imports will start decreasing, reaching 2.4 MMtpa by 2030.

Benzene and Para xylene Trade Flow (2018-2030)

Source: Stratas Advisors

Cash Margins for Aromatics

Stratas Advisors provides petrochemical plant margins across all regions and plants for the long- and short-term. The petrochemical margins are available under the Global Petrochemicals service.

Cash margins for aromatics in the Asia region will remain positive during the long term, which will be 266 $/mt of BTX in 2018 and 258 $/mt of BTX by 2025.

91119aromaticsinsight

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