Benzene is a light, highly flammable, colorless and volatile, liquid aromatic hydrocarbon with a sweet odor. It is a six carbon unsaturated cyclic hydrocarbon with a chemical formula C6H6. The cyclic structure of benzene has continuous pi bond linkages between the carbons making it an aromatic hydrocarbon. Benzene is commonly found in crude oil, coking coal and other forms of carbon sources with aromatic content. It is a by-product in crude oil refineries, steel plants and a co-product of other petrochemicals manufacturing process.
Applications
Benzene is primarily used as a building block for producing derivatives like styrene, cyclohexane, cumene, aniline, alkyl benzenes and chlorobenzenes. Among these derivatives styrene, cumene and cyclohexane are the major chemical products produced from benzene. More than half of the global benzene is used in making styrene.
Styrene is produced by combining benzene and ethylene and is then dehydrogenated using either multiple bed adiabatic or tubular isothermal reactors. Styrene is further polymerized to form polystyrene, copolymerized to form styrene copolymer resins and rubbers. These polymers have various applications in construction, house ware, tire and footwear manufacturing and others.
Cyclohexane is produced by hydrogenation of benzene. Cyclohexane is used in making adipic acid, carprolactum and hexamethylene diamine which act as feedstock for making nylon and nylon 6,6.
Cumene is produced by combining benzene and propylene. Cumene is further oxidized to phenol which acts as a major feedstock used in making polycarbonate plastics, epoxy adhesives and phenolic resins.
Aniline is produced by nitration of benzene. It is further hydrogenated to act as a feedstock in making polyurethane, as a rubber chemical and in making pesticides and dyes.
Benzene is also used as an additive for gasoline, as a solvent for equipment cleaning, de-inking paper, varnish, and as a feedstock in making pharmaceutical and agrochemical ingredients. Benzene suppliers include oil refineries, petrochemical plants and coal processing plants. The supply chain further includes distributors, dealers and traders.
Benzene Production Process
Benzene was historically largely produced as a by-product of coal processing plants and later with rising demand, petroleum plants became the primary source of production. Benzene production is dependent on the production of other major chemical products. Benzene is largely produced as a by-product and a co-product from processes that are primarily aimed at producing other chemicals such as carbon, gasoline blending components and ethylene. Only a small portion of benzene is produced ‘on purpose’ i.e. as the target output of a production process, this is done using interconversion technologies.
Major production processes for producing benzene include–
Catalytic Reforming Of Naphtha
Oil refineries carry out catalytic reforming of naphtha to produce gasoline blending components. Benzene is produced as an aromatic reformate in the process along with toluene and xylenes. The aliphatic hydrocarbons in naphtha undergo isomerization and partial dehydrogenation under specific physical conditions to form ring structures.
Steam Cracking Of Light Naphtha And Hydrocarbon Gas
Petrochemical companies produce ethylene and other olefins using steam cracking technology. Pyrolysis gasoline, a feedstock for the production of benzene is produced as a by-product which is then processed to form benzene.
Coal Processing
Coal processing plants carbonize coal to produce coke which has major applications in steel industry. Benzene is produced in the process as a by-product.
On-purpose Production
A small number of petrochemical companies use aromatic interconversion technologies to produce benzene. Toluene is used as a feedstock to produce benzene in these production processes. The technologies include–
- Toluene Disproportionation (TDP) and Selective Toluene Disproportionation (STDP) convert toluene into equimolar amounts of benzene and xylenes.
- Toluene Hydrodealkylation (HAD) converts toluene into benzene and methane in the presence of hydrogen.
Market Characteristics
Rising demand of polystyrene and other copolymers of styrene from various industries such as automobiles, construction, and packaging industry is likely to drive the benzene and its derivatives market. As styrene is a major feedstock for polystyrene production, demand for polystyrene is expected to fuel the growth of this market. Demand for automobiles, construction, and packaging industry are actually increasing because of growing population and extra income in developing countries. Additionally, demand for cumene/phenol is likely to increase at a greater rate because of an upsurge in demand from phenolic resins and bisphenol A end-use markets. Phenol demand is growing at a higher rate, which in turn will boost consumption of benzene. Phenolic resins, bisphenol A are feedstocks for different markets like epoxy resins, polycarbonate among others.
Drivers and Restraints
Growing investments in downstream industries in regions like the Middle East and the Far East are likely to offer tremendous possibilities for benzene and its derivatives market in the future. As a result of accessibility to raw material, multinational businesses are investing in resource-rich regions to be able to limit the overall production cost.
Benzene and its derivatives are exposed to the probability of volatility in supply and price of crude oil. Benzene has an adverse effect on human body if exposed to it for a longer duration. Its remnants are normally found in soil and air which often makes environmental regulatory institutions to implement strict regulations on usage of benzene. Existing and future regulations concerning the use of benzene and its derivatives in end products are likely to hinder the market growth.
Benzene Market By Region
Asia was the largest consumer of benzene and its derivatives and this pattern is anticipated to continue to be identical over the following few years. Consumption in Asia is showing upward trend because of increase in economic activity in China and India. China, Japan and South Korea were the largest consumers of benzene in this region, whereas India is likely to grow at a higher pace. Growing demand for automobile, construction, textiles electricals/electronics and other industries will drive benzene and its derivatives market in Asia. Consumption of benzene and its derivatives in rest of the world was minimal however it is likely to grow at a reasonable rate next to Asia. North America is likely to grow at a significant rate due to demand from construction and textiles industry. Demand from Europe was low relatively and is likely to stay same in the next few years due to strict environmental regulations.
Top Players
Top players in this market include China National Petroleum Corporation, China Petroleum & Chemical Corporation, ExxonMobil Corporation, JX Holdings, Royal Dutch Shell Plc., Dow Chemical Company, CNPC, Total S.A., BASF SE and Saudi Basic Industries Corporation.
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