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Benzene Market -New Revenue Pockets
Benzene is natural constituent of crude oil, and is one of the most basic petrochemicals, which is derived by various processes like catalytic cracking and reforming. It is highly flammable, has a sweet odor and quickly evaporates into air. It is an important feedstock to manufacture various chemicals like ethylbenzene, cyclohexane, cumene, nitrobenzene, and alkylbenzene that are further used in various industries.
The Asia-Pacific led the benzene market, accounting for more than 45.0% of the total consumption in 2012 and this demand is projected to grow at a CAGR of about 4.1% from 2013 to 2018. The Asia-Pacific market is witnessed to encompass upcoming production capacities for styrene, aniline, phenol, acetone, caprolactam, and adipic acid, which are directly derived from benzene derivatives. This may increase the demand for various benzene derivatives and ultimately drive the demand for benzene in the future.
Also, the budding demand for styrenic polymers for the production of styrene based polymers and copolymers, and increasing phenol consumption for the production of bisphenol A, phenol-formaldehyde resins, and so on , which are manufactured employing major derivatives of benzene, are in turn expected to accelerate the demand of the benzene market. The increasing demand for MDI (Methylene diphenyl diisocyanate) which is mainly used in rigid polyurethane foams and is manufactured from aniline is another driving force of the benzene market and may augment the demand for benzene at a notable rate.
Saudi Arabia, being a giant in crude production is one of the emerging markets of various chemicals and petrochemicals and is expected to be developing the most in the coming years. Saudi Arabia consumed about 1.9 million tons of benzene in the year 2012 and this consumption is expected to grow at a CAGR of about 6.0% from 2013 and 2018. The country is expected to witness rising investments in the downstream sector in the future and about 59 petrochemical projects are currently in the pipeline. Out of these projects, 7.0% are Greenfield projects. The demand growth by alkylbenzene segment is anticipated to be quite high, which is due to planned investments by Riyadh Oil Factory and Gulf Farabi Petrochemical Co. These factors may augment the demand for benzene in the country and may also turn out to be a significant opportunity for the market players in the near future.
Benzene Market & Its Derivatives (Ethylbenzene, Cumene, Cyclohexane, Nitrobenzene, and Alkylbenzene) Market by Application & Geography – Trends and Forecasts to 2018
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