Published February 2022
ortho-Xylene (1,2-dimethyl-benzene, o-xylene, or OX) is an aromatic compound that is commonly derived from crude oil sources. It is found in the mixed xylenes stream, which is a mixture of ortho-xylene, metaxylene (MX), and para-xylene (PX). While very similar in structure, these three isomers have very different chemical properties and applications. OX is the second-most-consumed component obtained from the mixed xylenes stream.
The following pie chart shows world consumption of ortho-xylene:
The 10 largest OX producers, many of which are in Asia, accounted for about 69% of total capacity globally in 2021; the OX market is therefore relatively concentrated. Most of these producers are international oil companies, national oil companies, or large refiners and petrochemical producers. In 2021, the world’s largest OX producers were SINOPEC, ExxonMobil, and Formosa.
Isolated ortho-xylene is used primarily to manufacture PA, a key component in the manufacture of plasticizers; PA can also be produced from naphthalene in some regions. PA is used primarily to produce phthalate-based PVC plasticizers, unsaturated polyester resins used for fiber-reinforced resins, and alkyd resins used for coatings. Over the past five years, global OX consumption has remained same after a decline, driven down by the increasing use of naphthalene as a phthalic anhydride feedstock in mainland China, as well as the overall stagnant demand for PA globally. Ultimately, increasingly stringent regulations, such as the REACH regulation in the European Union, are calling for the gradual replacement of phthalate-based plasticizers, which is limiting PA—and thus OX—consumption growth. However in 2021, ortho-xylene consumption for PA has increased globally. In fact, in mainland China, the largest PA market globally, OX demand has increased in 2021 after seeing a decline since 2013.
Over the next five years, global OX capacity is projected to increase, following hypothetical capacity additions in mainland China. Mainland Chinese OX production is expected to increase, and imports will declined owing to its growing self-sufficiency. ortho-Xylene trade is relatively limited globally, amounting to about 20–25% of global consumption in recent years. Mainland China and Western Europe are, by far, the major recipient of imports, while the major OX exporters in 2021 were the Indian Subcontinent, North America, and Southeast Asia.
In the developed world, the OX and PA markets are believed to have stabilized and are projected to post slow growth through 2026. Softer growth prospects for the mainland Chinese steel industry will limit the amount of new naphthalene volumes available, which will prevent the further replacement of domestic OX-based PA units.
For more detailed information, see the table of contents, shown below.
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