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This article is reproduced from the Shanghai Steel Union Coal Chemicals Network, where I work. Phenol products: Phenols are one of the main products extracted from coal tar; their concentration in tar is around 3-4%. They serve as raw materials for the production of phenol, o-cresol, m-cresol, and other similar products. With the development of downstream products derived from phenol, demand for phenol has been increasing year by year in recent times. The domestic supply cannot meet this demand, so imports are necessary every year. In 2003, China’s total demand for phenol reached 540,000 tons, and by 2005 this figure was expected to reach around 672,000 tons. The current price of phenol is approximately 12,000 yuan per ton. O-cresol is in severe shortage in China, with most of the demand being met through imports; the import volume in 2003 was 5,930 tons. The manufacturers of o-cresol in our country include Shanghai Coking Plant, Magang Coking Plant, Nanjing Meishan Coking Plant, and others. Due to its small scale, outdated manufacturing processes, and poor product quality, it is unable to meet domestic demand. Currently, the annual consumption of o-cresol in China is 7,000–8,000 tons, and experts predict that China’s demand for o-cresol will be around 9,000 tons by 2007. The current price of o-cresol is approximately 16,500 yuan per ton. M-cresol is an important fine chemical intermediate for the synthesis of pesticides, dyes, antioxidants for rubber and plastics, photographic materials for pharmaceuticals, vitamin E, and fragrances. In recent years, the production and development prospects for downstream products in our country are very promising; as a result, the demand for m-cresol is expected to increase at an annual rate of 8-10%. At present, the domestic production of m-cresol cannot meet market demand, necessitating the import of a considerable amount each year; therefore, m-cresol is one of the fine chemical intermediates in China that requires urgent development and holds broad application prospects. Taking pesticides as an example alone, before 2005 the pesticide industry’s demand for m-cresol maintained an average annual growth rate of around 8%, and by 2005 it would require approximately 6,500 tons of m-cresol. In 2006, China’s imports of m-cresol amounted to 10,631 tons. In 2006, the demand for cresol across various industries nationwide exceeded 40,000 tons, yet the only large-scale production facility for cresol in China was Yanshan Petrochemical Company under Sinopec, with a production capacity of 12,000 tons. The current price of m-cresol is 15,000–18,000 yuan per ton. Mixed xylene can be used as a solvent, disinfectant, and textile additive; it can also be used to produce phenolic resins and plasticizers. In 2006, its production volume was 1,500 tons, of which almost all was exported.