Mixed Aromatics Market Can Hardly Shake Off Import Dependence – Capacity Must Increase

By Hao Lianping, Tianjin Petrochemical

Environmental laws constrain capacity increase

With full implementation of the new national standard V for oil products, mixed aromatics have become first-choice additives for gasoline.
China’s output of mixed aromatics is quite low and fails to meet the increasing demand in gasoline blending. Dependence on imports was 62% in 2016. Imported mixed aromatics come mainly from Southeast Asia (especially Thailand), Europe and the United States.
Since 2016, a large number of reforming units have been constructed or are planned for construction in refineries. So the domestic output of reformate will increase considerably. China’s mixed aromatics capacity is forecast to reach 2.56 million t/a this year, an increase of 64.1% over 2013. Table 1 shows the capacity to make mixed aromatics in China during 2013-2017.
The number of vehicles in China and the demand for gasoline are certain to keep increasing, so the demand for gasoline additives will also go up. Environmental protection limits domestic capacity growth. Demand for mixed aromatics will grow faster than the domestic supply. The market share of imports will likely exceed 70%.

Import dependence is serious

Average annual growth of the import volume of aromatics mixtures was 43.44% during 2013-2016. There was virtually no export of domestic mixed aromatics. China imported 11.7014 million tons of mixed aromatics in 2016. Figure 1 shows the import volume of mixed aromatics in China during 2013-2016.
Mixed aromatics still have quite good development prospects as high-quality raw materials for gasoline blending. With China’s constant improvement of gasoline standards, environmental protection requirements will get more and more stringent, and control of the benzene content in blended gasoline will be more severe. So aromatics imported in the future will mainly be low-benzene aromatics from Europe and the United States. The import volume of high-benzene aromatics (mainly from Thailand) will decline constantly. The output of reformate will grow in the next five years, with some impact on the import of mixed aromatics. In the near future, however, the domestic supply of reformate cannot significantly affect the import of mixed aromatics.               

Table 1  Mixed aromatics capacity in China, 2013-2017

Region    Producer    Capacity (kt/a)    Remark
        2013    2014    2015    2016    2017E    
Northeast China    Panjin Baoteng Petrochemical Co., Ltd.    100    100    100    100    100    Domestic sales
    Panjin Yijiu Petrochemical Co., Ltd.    80    80    80    80    80    Domestic sales
    Panjin Heyun Industrial Group Co., Ltd.    100    100    100    100    100    Shutdown
East China    Zibo Tianquan Chemical Co., Ltd.    100    100    100    100    100    Domestic sales
    Weifang Dadi Xinmengyi Chemical Co., Ltd.    70    70    70    70    70    Shutdown
    Dezhou Hengyu Chemical Co., Ltd.    60    60    60    140    140    Domestic sales
    Dongying Shengji Chemical Co., Ltd.    80    80    80    80    380    Domestic sales
    Shandong Chengtai Chemical Industry Co., Ltd.    100    100    100    100    100    Domestic sales
    Zibo Qide Chemical Co., Ltd.    30    30    30    30    30    Domestic sales
    Zhangqiu Shenglong Chemical Co., Ltd.    60    100    120    120    120    Domestic sales
    Heze CITIC Guoan Chemical Group Co., Ltd.                200    200    Domestic sales
    Qingzhou Weisheng Chemical Co., Ltd.    120    120    120    120    120    Domestic sales
    Zhejiang Henghe Petrochemical Co., Ltd.    70    150    150    150    150    Domestic sales
    Jiangsu Liandong Chemical Co., Ltd.    100    100    100            Shutdown
    Ningbo Xuhong Industrial Co., Ltd.    60    60    60    60    60    Domestic sales
    Ningbo Cestoil Petroleum Co., Ltd.                60    60    Domestic sales
    Ningbo Keyuan Group Co., Ltd.    120    120    120    120    120    Domestic sales
    Nanjing Yangzi Fine Chemical Co., Ltd.                120    120    Domestic sales
    Anhui Tongxin Chemical Co., Ltd.                100    100    Domestic sales
Central/South China    Wuhan Luhua Yueda Chemical Industry Co., Ltd.    100    100    100    100    100    Domestic sales
    Maoming Petrochemical Co., Ltd.    210    210    210    210    210    Mainly contractual sales
    Yikesi New Material Technology Co., Ltd.                    100    Domestic sales
    Total    1 560    1 680    1 700    2 160    2 560