CMAI Completes 2010 World Toluene & Mixed Xylenes Analysis

HOUSTON, Feb. 22 /PRNewswire/ -- Chemical Market Associates, Inc. (CMAI) announces the completion of the 2010 World Toluene & Mixed Xylenes Analysis, an annual global study that covers past and future developments in supply, demand, production, capacity, trade, pricing and profitability of the toluene, mixed xylenes, orthoxylene and metaxylene markets for the period 2004 to 2014. Included with each analysis is 12 months of access to CMAI's online capacity and supply/demand databases with a mid-term supply/demand update incorporating the latest economic and market outlook. New for 2010 editions is access to the key graphics contained in the Analysis in both Microsoft Excel and PowerPoint. The Analysis is a necessary resource for business managers and planning professionals who need to make strategic business decisions in a rapidly changing global economic and market environment.

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Current Market Situation

Similar to other petrochemical markets, demand for toluene and xylenes markets saw significant declines in 2008 as the recession hit the western world hard. For 2009, the xylenes market was in much better shape than expected with modest growth in demand forecasted for mixed xylenes due to strong Asian demand for polyester. The major outlet for mixed xylenes is paraxylene, which in turn is one of the basic building blocks in the production of polyester. Conversely, toluene demand experienced further declines in 2009. Fifty percent of toluene is used to make on purpose benzene, mixed xylenes and paraxylene. On the supply side, although installed capacity increased, weak refining margins caused refiners to cut crude run and in some cases shut refineries down which reduced the availability of reformate for extraction. Legislation dictating the use of "renewable fuels" and automobile fuel efficiency is also transforming the U.S. refining industry, which has altered the underlying value of aromatics.

Market Outlook

The Asian market, with its large concentration and growth for polyester, continues to establish itself as the center of influence for toluene and xylenes market. Overall xylenes chain demand growth remains at multiples of GDP due to its primary end use sector, polyester. Northeast Asia has become the largest market and is also expected to maintain the highest growth rate. Between 2009 and 2014 world toluene and mixed xylenes capacity is forecast to increase. A significant portion of both toluene and xylenes capacity is built integral to paraxylene complexes which include naphtha reforming, aromatics extraction and toluene to benzene and xylenes conversion processes designed to maximize paraxylene production for a given amount of naphtha reforming capacity. Outside of Asia, the Middle East and India will also add significant capacity to contribute to an anticipated increase in global capacity in 2009. Ortho and meta xylenes markets are also experiencing similar troubles with the sudden drop in demand and overcapacity. Process advantages have recovery of these xylenes isomers built integral to paraxylene complexes. Both ortho and meta xylenes markets are forecast to resume steady demand growth but operating rate recovery will likely be supported with more capacity rationalization.

To find out more about the current market issues and CMAI's outlook for the toluene and mixed xylenes industry, order this analysis now at www.cmaiglobal.com. The analysis is available in electronic format along with access to CMAI's Online Capacity and Supply/Demand databases on CMAI'S website. With updates to the Capacity database as changes in the marketplace occur, and an annual mid-year update to the Supply/Demand database, clients can rely on these databases as a necessary tool for their strategic business decisions.

CMAI is the premier provider of Market, Planning and Business Advisory Services offering a unique combination of consulting analytics and expertise for the global chemical, plastics, fibers and chlor-alkali industries. With offices in Houston, New York, London, Dubai, Dusseldorf, Singapore and Shanghai, CMAI has provided expert business advisory services to a broad base of companies across multiple value chains and geographies since 1979. Clients to CMAI services include chemical and oil companies, technology & EPC companies, banking and financial institutions, consumer product companies, textile & apparel manufacturers, brand-owners, grocers/retailers, government agencies and trading companies.

For more information on the 2010 World Toluene & Mixed Xylenes Analysis visit CMAI's website at www.cmaiglobal.comor contact:

SOURCE Chemical Market Associates, Inc.