A complete overview of the factors affecting the China aromatics market in 2013
Why has 2013 been such a tough year for China’s mixed aromatics market? Economic slowdown, oil product pricing reform and consumption tax policy are all factors. Times are hard for the domestic gasoline blending players; they are facing lower demand from state-run oil majors, and reduced margins pending the government’s consumption tax on mixed aromatics.
The new fuel pricing mechanism is intended to curb speculation in the gasoline and gasoil markets, but will also affect trading of blended gasoline. Demand for mixed aromatics remains weak, so gasoline blending players are purchasing mixed aromatics only as required. There are other implications. With easier access to blendstock at a lower cost, some mixed aromatics traders are engaging in gasoline blending. Others have started selling to petrol stations, or are setting up their own petrol stations. Meanwhile, most domestic refiners have cut or stopped aromatisation in view of low yield and negligible margins, and have been replaced by alkylation units which offer high output and attractive margins.
Clearly, the mixed aromatics market is changing fast. The China Mixed Aromatics Annual Report offers vital forecasts of future production patterns in China to support business planning. All analyses are based on first hand research by ICIS experts, extrapolated from official data obtained from government authorities. In addition to a thorough market analysis the report forecasts emerging trends enabling mixed aromatics market players to make better informed trading decisions.
The China Mixed Aromatics Market Annual Report 2013 – 2014 shows how the mixed aromatics market has been affected by multiple factors in 2013, including the government’s consumption tax policy . The report also looks ahead to see how market players are adapting the way they work to cope with the changes.
The China Mixed Aromatics Annual Report covers:
The China Mixed Aromatics Market Annual Report provides an exhaustive analysis of factors affecting the mixed aromatics market in China now and up to 2018. This essential evaluation includes expert insight into how consumption tax policy will affect domestic and import markets; a view on how mixed aromatic players are adjusting their operations to cope with fluctuating prices; plus forecasts for the next five years.
Use the China Mixed Aromatics Annual Report to:
A surge in butane demand from butane deep processing units in China may trigger imports of this feedstock in 2013-2014, as supply of domestic butane may fail to meet the robust demand and its quality is not as good as the foreign grade, ICIS C1 Energy forecasts.
The opportunity is enormous, but the key question confronting the global petrochemical industry is: Who will be the winners and the losers from China’s economic development?
China is expected to boost its gasoil and gasoline exports from 2014, because the world’s second-largest economy is likely to face an oversupply in its fast-growing refining capacities, industry sources said.