Oleochemicals

FOCUS 'meta trends' across the Asia Pacific region. She was followed by Yulia Fransisca of Euromonitor who focused in on a more in-depth look at the future of laundry care. Linking these two future views together, Neil Burns then rounded off the first day's presentations with an interpretation of what they would mean for the surfactants industry. The discussion of market dynamics continued on day two with the presentation by John Richardson of ICIS entitled 'China's economic about turn – what it means for the global surfactants industry'. He analysed China's lending and borrowing behaviour over recent years, pointing out that China's boom has been based on 'the biggest credit bubble in history'. The chemicals sector has benefited greatly from this credit boom but with China now entering a phase of lower credit growth, which he termed the 'New Normal', Richardson posed the question as to the effect this will have on the demand for chemicals. He concluded that companies continuing to base their strategy on the belief that China's demand 'will be the saviour of the global industry' and assuming that markets will return to the previous status quo are likely to be heading for trouble under the 'New Normal'. Instead, companies will need to adapt to be successful, accepting that there will be both new challenges and new opportunities, and refocusing their product offerings to align with key megatrends. Also from ICIS, Angeline Soh provided a detailed overview of fatty alcohol ethoxylates in Asia, including market size and drivers, pricing trends, SWOT analysis and outlook, while Charu Kapoor of Indian consulting company Tata Strategic Management Group examined emerging applications for oleochemicals, focusing on 'new age' surfactants (ie, methyl ester sulfonates), bioplastics and biolubricants. Rounding off the conference were two papers on non-mainstream but nonetheless important end-use applications for surfactants. Brian Downward of Solvay Novecare discussed opportunities in Asia's oil and gas industry, and Rajesh Ramamurthy (Archroma) gave a thorough overview of the use of surfactants in the textiles industry. All four classes of surfactants are variously employed in this sector as fibre scouring agents, wetting agents, dye bath auxiliaries and finishing/ softening agents. Many of these themes will be revisited at the upcoming 5th ICIS Asian

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Surfactants Conference, which returns to Singapore this November (p 8). Caroline Edser

RAW MATERIALS Linear alkylbenzene Linear alkylbenzene growth to average 2.5%/y The 3.2 M tonnes/y global market for linear alkylbenzene (LAB) is projected to grow at a rate of 2.5%/y over the 2013-2025 period, according to Colin A. Houston & Associates Inc (CAHA), a consulting firm in Aiken, SC, USA. LAB use in surfactants represented $6.3 bn in value in 2013. Demand in Asia accounts for 50% of worldwide LAB consumption with 3.2%/y growth forecast through 2025. LAB producers in the Middle East hold cost advantages and have built export-oriented plants during the past decade. Indian producers are disadvantaged by higher cost feedstocks, which has opened the door for large quantities of imports. Globally, LAB sulfonate (LABS) consumption in household products is forecast to grow at an average rate of 2.5%/y through 2025 to 5.4 M tonnes/y, representing >90% of total LABS demand. Synthetic detergent growth and the increased per capita consumption in developing regions are driving the increase in demand. Original Source: Colin A Houston & Associates Inc, Jul 2015, (Website: http://www. colin-houston.com) © Colin A Houston & Associates Inc 2015

Cepsa acquires 49% interest in linear alkylbenzene venture Cepsa has bought the 49% stake owned by Investissement Quebec in its linear alkylbenzene (LAB) joint venture in Becancour, Canada [see also 'Focus on Surfactants', Aug 2008]. The company now holds full ownership of the plant. The facility is capable of producing 120,000 tonnes/y of the chemical. Original Source: Chemical and Engineering News, 27 Jul 2015, 93 (30), 28 (Website: http://cen.acs.org/index.html) © American Chemical Society 2015

Oleochemicals ‘Lazy El Nino’ drags palm oil as a bear market looms According to a director at Godrej Industries Ltd, global palm oil production will rise to more-than-expected levels and reach a record in 2015, driving a more than six-year low in prices by endSep 2015. Malaysia and Indonesia, which together constitute 86% of the world's oils supply, may increase their production due to lazy El Nino patterns. Malaysia's production may grow to 20 M tonnes in 2015, while Indonesia is likely to produce 32 M tonnes. In Sep 2015, prices are seen to plunge to Ringgit 1900 ($490)/tonne. These drops would mean a bearish market condition for palm oil, with total palm oil production in 2015 expected to be around 2.5 M tonnes higher than in 2014. According to the Malaysian Palm Oil Board, palm oil inventories in Jun 2015 amounted to 2.15 M tonnes, compared to the record 2.63 M tonnes in Dec 2012. As output declines again, prices may increase to Ringgit 2100-2300/tonne. Original Source: Business Line, 7 Aug 2015, 22 (188), 18 (Website: http://www. thehindubusinessline.com) © The Hindu Business Line 2015

Alkoxylates Sadara joint venture project nears completion Sadara Chemical Co, the joint venture of Dow Chemical and Saudi Aramco, has announced that construction of its production complex in Jubail Industry City II, Saudi Arabia, is almost 94% complete [see also, 'Focus on Surfactants, Apr 2015]. Construction of the plant currently involves 47,000 on-site workers. Start-up and commissioning of major utilities is ongoing, and operations at the first units (polyethylene) will commence in late 2H 2015. The 26 production assets are set for a sequenced start-up that commences with polyolefins, followed by propylene oxide, ethylene oxide and derivatives, and polyurethanes. The site is set to run at full capacity at end-2016. Around 45% of Sadara's output will be allotted to Asia Pacific markets. Original Source: Chemical Weekly, 7 Jul 2015, LX (48), 138 (Website: http://www. chemicalweekly.com) © Sevak Publications & Chemical Weekly Database P Ltd 2015. Original Source: Chemical Engineering World, Jul 2015, 50 (7), 12 (Website: http://www. cewindia.com) © Jasubhai Group 2015

October 2015