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Fatty alcohol price down on weak demand, lower feedstock cost
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RAW MATERIALS Oleochemicals Fatty alcohol price down on weak demand, lower feedstock cost Global prices of mid-cut fatty alcohols dropped in 3Q 2011 from the record high in 2Q 2011, owing to soft demand and sharp price drops in feedstock crude palm kernel oil (CPKO) and crude palm oil (CPO). There is weak demand for C12-14 alcohols because buyers anticipate prices to fall further and are only buying volumes on a need-to basis, according to an Indonesian fatty alcohols producer. The decline in CPKO prices was caused by oversupply, with CPKO output in Jun 2011 rising by 1682 tonnes to 194,324 tonnes from the May 2011 level. Palm oil traders see the price softening for both CPKO and CPO as temporary and global export demand pick up over the next few months. Original Source: ICIS Chemical Business, 1 Aug 2011 (Website: http://icischemicalbusiness.com) © Reed Business Information Limited 2011
Threat to Malaysia’s palm oil sector Indonesia is proposing to restructure its palm oil export duty on refined palm oil products, whereby the duty structure will reduce by 10 basis points, based on the average crude palm oil (CPO) spot prices at the Rotterdam market. Indonesian CPO is $120 to $150/tonne more economical than its Malaysian counterpart; the proposed duty structure will make it even cheaper. This is likely to hit the Malaysian Ringgit 6 bn palm oil downstream sector and players in the refining, oleochemicals and biodiesel sectors. The Indonesian proposal is likely to attract many Malaysian downstream players to relocate there. In response, the Palm Oil Refiners Association of Malaysia (PORAM), Malaysian Oleochemical Manufacturers Group (MOMG) and Malaysian Biodiesel Association (MBA) requested the Malaysian government to look into the 2
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matter urgently and come up with a solution within Oct 2011. According to the associations, ex-duty CPO price to refiners (from 9-15 Mar 2011) in Malaysia is around $1154/tonne as against the discounted CPO price less duty of around $839.75/tonne in Indonesia. In order to reduce the difference, PORAM, MOMG and MBA have suggested the following proposals to the government: plantation companies should sell CPO to targeted downstream product manufacturers at a Ringgit 600/tonne discount over the Malaysian Palm Oil Board’s monthly average price and this could be offset against the planters’ windfall profit tax payment; a duty drawback corresponding to the CPO export tax from Indonesia; and a Performance Management and Delivery Unit grant of Ringgit 600/tonne of total palm oil downstream products exported in a year to the targeted palm oil downstream companies. Operating profit margins for palm oil refiners in Malaysia and Indonesia are about 3% to 6%. Original Source: The Star, 4 Aug 2011 (Website: http://www.thestar.com.my/) © Star Publications (M) Bhd 2011
Ethoxylates Ethylene oxide industry enjoys a higher profitability in China in 20102011 A new report from ResearchInChina indicates that China’s commodity ethylene oxide (EO) sector is seeing greater profitability than ethylene glycol (EG), the end-product of EO/EG joint production plants, owing to serious tightness in supply. The country’s commodity EO supplydemand gap hit 500,000 tonnes in 2010, and is expected to continue to broaden over the next few years, as there is little capacity increase seen in 2010-2013, keeping the EO sector’s high level of profitability. Zhenhai Refining & Chemical Co dominated the sector in terms of EO equivalent capacity in 2010, representing 650,000 tonnes, or 18.2% of the overall capacity, followed by Shanghai Petrochemical Co Ltd, with 14.8% of the total. For the nonionic surfactant AEO, China produced approximately 300,000 tonnes in 2010, and
imported about 140,000 tonnes. The country’s production of polycarboxylate water reducers (superplasticizers for concrete) increased 18% year on year by volume to roughly 1.5 M tonnes. The market for EO in China, as in India, other parts of the Asia Pacific and the Middle East, is growing at a compound annual growth rate of about 5-6%. The European market in contrast is set to experience increasing EO supply tightness due to ongoing plant closures. Original Source: Chemical Business (India), Apr 2011, 25 (4), 72-73 (Website: http://www.printsjournals.com/) © Prints India 2011
SURFACTANTS A sustainable solubilizer and cosurfactant for cosmetics Wheatoleo, a jv between Oleon and ARD [Focus on Surfactants, May 2007 & Jun 2008], has formulated alkyl polypentosides that can satisfy sustainability demand in detergents, personal care and crop protection. The firm’s Radia Easysurf 6881 (INCI name: caprylyl capryl wheat bran/straw glycosides) was developed as a green solubilizer and cosurfactant suited for use in foaming cosmetic formulations such as shampoos and shower gels. It can also be used as a substitute for ethoxylated solubilizers. In addition, Radia Easysurf 6881 contributes to the surfactant system, having good compatibility with other surfactants. Original Source: Speciality Chemicals, Jul 2011, 31 (7), 26-27 (Website: http://www.specchemonline.com/) © Quartz Business Media Ltd 2011
Codexis and Chemtex collaborate on sustainable detergent alcohols Codexis has announced a broad collaboration with Chemtex to develop and produce sustainable detergent alcohols for use in the household products market. The collaboration includes development of secondgeneration detergent alcohols from cellulosic (non-food) biomass. At present, detergent alcohols, which are widely used in laundry detergents, shampoos and other OCTOBER 2011
RAW MATERIALS Oleochemicals Fatty alcohol price down on weak demand, lower feedstock cost Global prices of mid-cut fatty alcohols dropped in 3Q 2011 from the record high in 2Q 2011, owing to soft demand and sharp price drops in feedstock crude palm kernel oil (CPKO) and crude palm oil (CPO). There is weak demand for C12-14 alcohols because buyers anticipate prices to fall further and are only buying volumes on a need-to basis, according to an Indonesian fatty alcohols producer. The decline in CPKO prices was caused by oversupply, with CPKO output in Jun 2011 rising by 1682 tonnes to 194,324 tonnes from the May 2011 level. Palm oil traders see the price softening for both CPKO and CPO as temporary and global export demand pick up over the next few months. Original Source: ICIS Chemical Business, 1 Aug 2011 (Website: http://icischemicalbusiness.com) © Reed Business Information Limited 2011
Threat to Malaysia’s palm oil sector Indonesia is proposing to restructure its palm oil export duty on refined palm oil products, whereby the duty structure will reduce by 10 basis points, based on the average crude palm oil (CPO) spot prices at the Rotterdam market. Indonesian CPO is $120 to $150/tonne more economical than its Malaysian counterpart; the proposed duty structure will make it even cheaper. This is likely to hit the Malaysian Ringgit 6 bn palm oil downstream sector and players in the refining, oleochemicals and biodiesel sectors. The Indonesian proposal is likely to attract many Malaysian downstream players to relocate there. In response, the Palm Oil Refiners Association of Malaysia (PORAM), Malaysian Oleochemical Manufacturers Group (MOMG) and Malaysian Biodiesel Association (MBA) requested the Malaysian government to look into the 2
ON
S U R FA C TA N T S
matter urgently and come up with a solution within Oct 2011. According to the associations, ex-duty CPO price to refiners (from 9-15 Mar 2011) in Malaysia is around $1154/tonne as against the discounted CPO price less duty of around $839.75/tonne in Indonesia. In order to reduce the difference, PORAM, MOMG and MBA have suggested the following proposals to the government: plantation companies should sell CPO to targeted downstream product manufacturers at a Ringgit 600/tonne discount over the Malaysian Palm Oil Board’s monthly average price and this could be offset against the planters’ windfall profit tax payment; a duty drawback corresponding to the CPO export tax from Indonesia; and a Performance Management and Delivery Unit grant of Ringgit 600/tonne of total palm oil downstream products exported in a year to the targeted palm oil downstream companies. Operating profit margins for palm oil refiners in Malaysia and Indonesia are about 3% to 6%. Original Source: The Star, 4 Aug 2011 (Website: http://www.thestar.com.my/) © Star Publications (M) Bhd 2011
Ethoxylates Ethylene oxide industry enjoys a higher profitability in China in 20102011 A new report from ResearchInChina indicates that China’s commodity ethylene oxide (EO) sector is seeing greater profitability than ethylene glycol (EG), the end-product of EO/EG joint production plants, owing to serious tightness in supply. The country’s commodity EO supplydemand gap hit 500,000 tonnes in 2010, and is expected to continue to broaden over the next few years, as there is little capacity increase seen in 2010-2013, keeping the EO sector’s high level of profitability. Zhenhai Refining & Chemical Co dominated the sector in terms of EO equivalent capacity in 2010, representing 650,000 tonnes, or 18.2% of the overall capacity, followed by Shanghai Petrochemical Co Ltd, with 14.8% of the total. For the nonionic surfactant AEO, China produced approximately 300,000 tonnes in 2010, and
imported about 140,000 tonnes. The country’s production of polycarboxylate water reducers (superplasticizers for concrete) increased 18% year on year by volume to roughly 1.5 M tonnes. The market for EO in China, as in India, other parts of the Asia Pacific and the Middle East, is growing at a compound annual growth rate of about 5-6%. The European market in contrast is set to experience increasing EO supply tightness due to ongoing plant closures. Original Source: Chemical Business (India), Apr 2011, 25 (4), 72-73 (Website: http://www.printsjournals.com/) © Prints India 2011
SURFACTANTS A sustainable solubilizer and cosurfactant for cosmetics Wheatoleo, a jv between Oleon and ARD [Focus on Surfactants, May 2007 & Jun 2008], has formulated alkyl polypentosides that can satisfy sustainability demand in detergents, personal care and crop protection. The firm’s Radia Easysurf 6881 (INCI name: caprylyl capryl wheat bran/straw glycosides) was developed as a green solubilizer and cosurfactant suited for use in foaming cosmetic formulations such as shampoos and shower gels. It can also be used as a substitute for ethoxylated solubilizers. In addition, Radia Easysurf 6881 contributes to the surfactant system, having good compatibility with other surfactants. Original Source: Speciality Chemicals, Jul 2011, 31 (7), 26-27 (Website: http://www.specchemonline.com/) © Quartz Business Media Ltd 2011
Codexis and Chemtex collaborate on sustainable detergent alcohols Codexis has announced a broad collaboration with Chemtex to develop and produce sustainable detergent alcohols for use in the household products market. The collaboration includes development of secondgeneration detergent alcohols from cellulosic (non-food) biomass. At present, detergent alcohols, which are widely used in laundry detergents, shampoos and other OCTOBER 2011