Paraxylene (PX) Market

Paraxylene (PX) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

SR496955 | 26-Mar-2021 | 120 Pages | Mordor Intelligence |

Summary

The Global Paraxylene (PX) Market was estimated at over 55 million tons in 2020 and the market is projected to register a CAGR of over 5.5% during the forecast period (2021-2026). The market was negatively impacted by COVID-19 in 2020. Purified Terephthalic Acid, a paraxylene product, is used to manufacture polyester coating resins for use in the formulation of automotive coatings. The declining automotive industry along with the temporary shutdown of automotive manufacturing units due to the ongoing pandemic scenario has declined the consumption of automotive coatings, thus creating a negative impact on the demand of paraxylene. However, the use of face-shield, clear masks, food, and e-Commerce packaging has increased, thus enhancing the demand of paraxylene derivatives including purified terephthalate acid, dimethyl terephthalate, and polyethylene terephthalate, which in-turn stimulating the demand of paraxylene.

- Over the short term, high demand for polyethylene terephthalate (PET) from the plastic industry in Asia-Pacific region and an increase in PET collection and recycling rates in European region are the driving factors for the growth of the market. The rising income levels and the increasing population levels are the primary factors that have been driving the growth of the food industry in these regions. Moreover, with huge scope for growth in these regions and new investments being observed in the food and beverage sector, which is intended toward setting up of individual confectionaries, food processing, and beverage producing facilities, is likely to propell market demand.
- An increase in consumer awareness regarding the use of plastic-free products and an increase in PET collection and recycling rates in Europe are hindering the market's growth.
- Innovation in the use of bio-based paraxylene in bioplastic PET bottles (Bio-PET) and other bioplastic products is likely to create opportunities for the market in the coming years.
- Asia-Pacific region is expected to dominate the market and is also likely to witness the highest CAGR during the forecast period.

Key Market Trends

Increasing Demand from the Purified Terephthalic Acid (PTA) Application

- Purified terephthalic acid (PTA) is an organic compound that is produced by reacting secondary petroleum product paraxylene (PX) and acetic acid. PTA has a form of a white crystalline powder that looks like sugar. It is quite inert and is thus difficult to dissolve in water or other liquids.
- PTA is majorly used for the production of polyesters, such as polyester films, PET bottles, and furniture, and is further used in making high-performance plastics, such as polybutylene terephthalate (PBT) and polyethylene terephthalate (PET).
- With increasing production in industries, such as automotive, food and beverage, electronics, and construction, the demand for plastics, such as PET, PBT, etc., is also increasing. This, in turn, is leading to increased demand for such high-performance plastics, which is likely to increase their production. Thus, as PTA is used in the production of such plastics, the demand for PTA is also expected to increase with the production of such plastics.
- In April 2020, Thyssenkrupp has received an order to build a new polyethylene terephthalate (PET) production plant for KÖKSAN, a packaging producer, in Gaziantep of Turkey, which will double the site’s annual production capacity to 432 kilotons of PET resin after commissioning in 2022, thus increasing the global demand of paraxylene market for the forecast period.
- Additionally, the plastics industry, at present, is focusing on manufacturing plastics made from bio-made materials, owing to the increasingly detrimental effects of plastic on the environment. The emerging market for bioplastics is expected to drive the market of PTA as well.
- Owing to all these factors, the market for paraxylene (PX) is likely to grow globally during the forecast period.

China to Dominate Asia-Pacific Region

- In Asia- Pacific, China has emerged as one of the biggest production houses in the world today and is also the largest manufacturer and consumer of paraxylene, at present.
- Growing demand for PET in China is ramping up the PET value chain, which, in turn, is rapidly driving the market for paraxylene in the country.
- China accounted for around 32% of the global PET production capacity and is been adding capacities continuously, through the years, owing to the growing demand for PET from the packaging and textile industries.
- Such factors are increasing the demand for PTA that is used as a precursor for PET resin production, which, in turn, is driving up the consumption of paraxylene continuously.
- Petrochemical companies in China are massively increasing their PTA capacity. In June 2020, Hengli petrochemicals has started a new PTA plant with an annual capacity of 2.5 million tons, which is world’s largest stand alone PTA production plant. Apart from this, further PTA plants are to be started by the end of 2020 in the China, such as from Fujian Baihong, Xinjiang Lanshan Tunhe, Honggang Petrochemical and Ningbo Yisheng, which in-turn stimulates the demand of paraxylene in the country.
- Around 14 to 15 million metric tons of new paraxylene production capacity are expected to be added in Asia, with the majority in China, annually.
- But, due to COVID-19 pandemic scenario, the end-user industries of paraxylene have been affected and have witnessed a negative growth rate, thus hindering the paraxylene demand.
- However, the market for paraxylene is likely to grow post-pandemic scenario as the end-user industries are likely to pick up pace during the later stage of the forecast period.

Competitive Landscape

The paraxylene (PX) market is moderately consolidated. In terms of market share, few major players currently dominate the market. Some of the major players in the market include ENEOS Corporation, INEOS, Reliance Industries Limited, S-OIL CORPORATION, and China National Petroleum Corporation, among others.

Reasons to Purchase this report:

- The market estimate (ME) sheet in Excel format
- 3 months of analyst support

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