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Ethylene oxide
FOCUS and polymers will be included in the spin-off of its Materials Technologies business. Elsewhere in this issue (p 3), Clariant has introduced sugar-based surfactant Hostafrac SF 13213 to improve the efficiency and sustainability of hydraulic fracturing (fracking). The company reports that the flowback aid substantially increases the recovery of fracture fluids while the use of a sustainably sourced sugar feedstock enhances the 'environmental profile' of the operation. Vantage has also launched a new series of vegetablebased, non-ethoxylated nonionic emulsifiers covering a range of HLBs. Lipomulse Eco L (INCI: propanediol stearate) and Lipomulse Eco L2 (INCI: polypropanediol stearate) are low HLB products, and Lipomulse Eco H [INCI: poly(glycerin/propanediol) stearates] has a high HLB. Vantage added the Lipomulse brand to its portfolio through the acquisition of Lipo Chemicals in 2010 [ibid, Oct 2010]. Caroline Edser
RAW MATERIALS Oleochemicals IOI buys Cremer’s German oleochemicals business Malaysian plantation company IOI Corp Bhd is buying Cremer Oleo's entire oleochemicals business in Germany for Ringgit 433.3 M (€89.4 M). The business has production facilities in Witten and Zur Hafenspitze; the former offers a broad array of mostly branded oleochemical speciality products for the pharmaceutical, cosmetic, food and performance chemicals markets worldwide, while the latter provides high-performance capacities for esterification with multi-step short-path distillation, distillation and fractionation of fatty acids, and production of medium-chain triglycerides. According to IOI Corp, the two plants provide a combined processing capacity of approximately 39,200 tonnes/y. The net book value of the assets (net of liabilities) is reported as €90.3 M. Cremer Oleo has an established European and multinational customer base. IOI says the proposed acquisition offers an opportunity for the group to
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move further along the value chain into more-specialized downstream oleochemical manufacturing and expand into a new product range serving higher-margin markets worldwide. It would also enable the transfer of advanced know-how back to Malaysia to benefit IOI's existing oleochemical operations there. Original Source: The Star, 10 Sep 2015, (Website: http://thestar.com.my) © Star Publications (M) Bhd 2015
Malaysian palm oil sector bracing for Indonesian levy impact Malaysian palm refiners are preparing for a potential squeeze in margins after Indonesia's introduction of a new palm oil duty in Jul 2015. According to CIMB Research, Indonesian refiners are recapturing margin advantage as the levy helped reduce the nation's crude palm oil (CPO) price by $50/tonne to $50/tonne, thus enhancing processing margins of downstream processors in the country. Malaysia's export tax for both domestic CPO and processed palm products is presently zero as the CPO price in the country is lower than Ringgit 2250/tonne, the threshold price triggering export tax. At this CPO level, Malaysian refiners are extremely disadvantaged over Indonesian counterparts, CIMB Research reported. The Palm Oil Refiners Association of Malaysia is proposing that the government review Malaysia's current export duty framework. Original Source: The Star, 15 Sep 2015 (Website: http://thestar.com.my) © Star Publications (M) Bhd 2015
El Nino poses big threat to palm oil production Malaysia will experience a strong El Nino phenomenon from end-2015 until Apr 2016, which is expected to cause a massive impact in the country's palm oil production. According to the director of plantation research and consulting firm Ganling Sdn Bhd, an El Nino occurrence is likely to cause 2-23% yield decline and is projected to be felt only in 2016. Meanwhile, the regional head of plantations of IMB Investment Bank reported that prices could increase by 13-40% depending on the severity of the phenomenon. In the near term, CPO prices are expected to trade between Ringgit 1800/tonne and Ringgit 2200/tonne.
Original Source: The Star, 23 Sep 2015, (Website: http://thestar.com.my) © Star Publications (M) Bhd 2015
Ethylene oxide Shell doubles EO, ethoxylates production with start-up of Jurong Island facilities Shell Chemicals has successfully started up a new high-purity ethylene oxide (EO) purification column and ethoxylation units at Jurong Island, Singapore, more than doubling production at the site. The new purification unit has a capacity of 140,000 tonnes/y, increasing the site's EO capacity to 205,000 tonnes/y. The two ethoxylation units, with a combined capacity of 140,000 tonnes/y, increase ethoxylates capacity to 180,000 tonnes/y. Shell will receive feedstock for the new units from its EO/monoethylene glycol plant at the company's nearby Bukom Island ethylene cracker complex. Original Source: PetroChemical News, 21 Sep 2015, 53 (36), 1 (Website: http://www. petrochemical-news.com) © William F. Bland Co 2015
Ethylene oxide in Europe In 1H 2015, significant changes in the supply of ethylene oxide (EO) were seen in Europe, as major producers (Sasol, INEOS Oxide, BASF and Shell) declared force majeures at their respective crackers ['Focus on Surfactants', Jul 2015]. However, supply is expected to return to normal in time for planned maintenance shutdowns of other EO plants. EO demand from the ethoxylates market remains robust but demand from the monoethylene glycol (MEG) market is low due to macroeconomic uncertainties. In Aug 2015, EO prices decreased after a long run of increases experienced since 1Q 2015 due to the decrease in ethylene prices. The ongoing force majeure declared by INEOS Europe and scheduled maintenance shutdowns remain to affect the market, driving contract prices to increase and affecting supply. A balanced EO market is expected in Europe in the near future, with no capacity additions, stable demand and limited supply issues due to facility shutdowns. BASF has 845,000 tonnes/y capacity across two EO facilities, in Antwerp, Belgium, and Ludwigshafen, Germany; INEOS November 2015
RAW MATERIALS Oleochemicals IOI buys Cremer’s German oleochemicals business Malaysian plantation company IOI Corp Bhd is buying Cremer Oleo's entire oleochemicals business in Germany for Ringgit 433.3 M (€89.4 M). The business has production facilities in Witten and Zur Hafenspitze; the former offers a broad array of mostly branded oleochemical speciality products for the pharmaceutical, cosmetic, food and performance chemicals markets worldwide, while the latter provides high-performance capacities for esterification with multi-step short-path distillation, distillation and fractionation of fatty acids, and production of medium-chain triglycerides. According to IOI Corp, the two plants provide a combined processing capacity of approximately 39,200 tonnes/y. The net book value of the assets (net of liabilities) is reported as €90.3 M. Cremer Oleo has an established European and multinational customer base. IOI says the proposed acquisition offers an opportunity for the group to
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S U R FAC TA N T S
move further along the value chain into more-specialized downstream oleochemical manufacturing and expand into a new product range serving higher-margin markets worldwide. It would also enable the transfer of advanced know-how back to Malaysia to benefit IOI's existing oleochemical operations there. Original Source: The Star, 10 Sep 2015, (Website: http://thestar.com.my) © Star Publications (M) Bhd 2015
Malaysian palm oil sector bracing for Indonesian levy impact Malaysian palm refiners are preparing for a potential squeeze in margins after Indonesia's introduction of a new palm oil duty in Jul 2015. According to CIMB Research, Indonesian refiners are recapturing margin advantage as the levy helped reduce the nation's crude palm oil (CPO) price by $50/tonne to $50/tonne, thus enhancing processing margins of downstream processors in the country. Malaysia's export tax for both domestic CPO and processed palm products is presently zero as the CPO price in the country is lower than Ringgit 2250/tonne, the threshold price triggering export tax. At this CPO level, Malaysian refiners are extremely disadvantaged over Indonesian counterparts, CIMB Research reported. The Palm Oil Refiners Association of Malaysia is proposing that the government review Malaysia's current export duty framework. Original Source: The Star, 15 Sep 2015 (Website: http://thestar.com.my) © Star Publications (M) Bhd 2015
El Nino poses big threat to palm oil production Malaysia will experience a strong El Nino phenomenon from end-2015 until Apr 2016, which is expected to cause a massive impact in the country's palm oil production. According to the director of plantation research and consulting firm Ganling Sdn Bhd, an El Nino occurrence is likely to cause 2-23% yield decline and is projected to be felt only in 2016. Meanwhile, the regional head of plantations of IMB Investment Bank reported that prices could increase by 13-40% depending on the severity of the phenomenon. In the near term, CPO prices are expected to trade between Ringgit 1800/tonne and Ringgit 2200/tonne.
Original Source: The Star, 23 Sep 2015, (Website: http://thestar.com.my) © Star Publications (M) Bhd 2015
Ethylene oxide Shell doubles EO, ethoxylates production with start-up of Jurong Island facilities Shell Chemicals has successfully started up a new high-purity ethylene oxide (EO) purification column and ethoxylation units at Jurong Island, Singapore, more than doubling production at the site. The new purification unit has a capacity of 140,000 tonnes/y, increasing the site's EO capacity to 205,000 tonnes/y. The two ethoxylation units, with a combined capacity of 140,000 tonnes/y, increase ethoxylates capacity to 180,000 tonnes/y. Shell will receive feedstock for the new units from its EO/monoethylene glycol plant at the company's nearby Bukom Island ethylene cracker complex. Original Source: PetroChemical News, 21 Sep 2015, 53 (36), 1 (Website: http://www. petrochemical-news.com) © William F. Bland Co 2015
Ethylene oxide in Europe In 1H 2015, significant changes in the supply of ethylene oxide (EO) were seen in Europe, as major producers (Sasol, INEOS Oxide, BASF and Shell) declared force majeures at their respective crackers ['Focus on Surfactants', Jul 2015]. However, supply is expected to return to normal in time for planned maintenance shutdowns of other EO plants. EO demand from the ethoxylates market remains robust but demand from the monoethylene glycol (MEG) market is low due to macroeconomic uncertainties. In Aug 2015, EO prices decreased after a long run of increases experienced since 1Q 2015 due to the decrease in ethylene prices. The ongoing force majeure declared by INEOS Europe and scheduled maintenance shutdowns remain to affect the market, driving contract prices to increase and affecting supply. A balanced EO market is expected in Europe in the near future, with no capacity additions, stable demand and limited supply issues due to facility shutdowns. BASF has 845,000 tonnes/y capacity across two EO facilities, in Antwerp, Belgium, and Ludwigshafen, Germany; INEOS November 2015