Phthalic Anhydride (2016 Program)

This report reviews the ortho-xylene and naphthalene routes to phthalic anhydride (PAN) production as well as details the separation of ortho-xylene from mixed xylenes and the naphthalene distillation from coal tar.  The PAN cost of production via those two routes for plants located in the United States, Western Europe, South Korea, and China has been estimated for the first quarter of 2016.  Nexant also commented on the motivations behind the recent capacity additions and closures and provided a high-level analysis of the business and strategic considerations, as well as the technology availability from the perspective of a company entering or expanding into the PAN market.  This analysis is underpinned by a review of end-use sector consumption as well as regional market dynamics.