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LAB market profile
F O C US level, and the future organization of COSRAM and its interface with EFfCI will be discussed. In addition, there will be presentations on legislative and EHS topics of current interest to the sector. The meeting is open to both non-members and members of BACS. Caroline Edser
RAW MATERIALS Linear alkylbenzene LAB market profile In 2003, global linear alkylbenzene (LAB) capacity was 3 M tonne/y, whilst worldwide demand totalled 2.4 M tonnes. Plant operating rates were around 80%, and global oversupply is anticipated for the next few years. Consolidation may occur in the industry. Almost all LAB output is used to produce linear alkylbenzene sulfonate (LAS) detergent surfactants. Asia-Pacific accounted for 42% of capacity in 2003, followed by the NAFTA region (19%) and Western Europe (19%). In 2006, global capacity is expected to be 3.67 M tonne/y, with 42% sited in Asia, 17% in the Middle East/Africa, 15% in the NAFTA region and 13% in Western Europe. The main LAB producers include Sasol, with plants in Italy, and Baltimore, MD, and Lake Charles, LA, in the US, and Petresa, with plants in Spain, Canada and Brazil. Global growth rates of 2-3%/y are forecast, with growth in Asia expected to rise by 4-5%/y. In 2006, Qatar Petroleum will open a 100,000 tonne/y plant in Mesaieed, Qatar, and Gulf Farabi will start up a 70,000 tonne/y plant in Al Jubail, Saudi Arabia. A 50,000 tonne/y plant will be opened in Iran in 1H 2004 by Bisotoon Petrochemical and a 30,000 tonne/y unit will be started up in Dubai by Emalab. European Chemical News, 23 Feb 2004, 80 (2088), 15
Huntsman raises LAB price Huntsman Petrochemical has announced a 6% price rise for all grades of LAB, effective from 1 Apr 2
O N
S U R FA C TA N T S
2004. The company cites continuing high costs for raw materials, including benzene, paraffin and natural gas. Chemical Week, 17 Mar 2004, 166 (9) (Website: http://www.chemweek.com)
Fluor gets LAB contract in Egypt Egyptian Petrochemicals Holding Co (Echem) has chosen Fluor Daniel as the managing contractor for its previously announced 80,000 tonnes/y LAB plant at Alexandria, Egypt (Focus on Surfactants, Nov 2003). Chemical Week, 31 Mar 2004, 166 (11) (Website: http://www.chemweek.com)
Indian LAB market may see price slump Analysts believe that the price war witnessed in India’s detergent segment is likely to extend to the LAB segment (p 5) as well, due to surplus capacity. The cost of LAB is Rup 54,000/tonne. LAB accounts for about 30% of the detergent production cost. The LAB segment has an installed capacity of 350,000 tonnes/y compared to a demand of 320,000 tonnes/y. The surplus capacity is expected to increase to 150,000 tonnes/y soon as Indian Oil Corp (IOC) is set to commission its 120,000 tonnes/y LAB plant in Vadodara by Jul 2004. At present, the Indian manufacturers are forced to sell the surplus stock in low margin Chinese and European markets. IOC has signed an agreement with HLL to supply LAB at lower cost. Business Line, 23 Mar 2004, 11 (82), 1
Alpha-olefins Outlook for alpha-olefins On recovery of the global economic market, growth of 6%/y is expected for the C12-C16 range of alphaolefins used in the manufacture of detergent alcohols. A further 3-5 years will be needed before operating rates begin to rise and the markets become more balanced. New projects are currently being announced by petrochemical producers in the Middle East. Oils and Fats International, Mar 2004, 20 (2), 9
Oleochemicals Global oleochemicals producers survey 2004 Oils and Fats International has published an updated survey of global oleochemicals producers. For each manufacturer (the majority of which are based in Malaysia and process palm and palm kernel oils), the survey lists the raw materials used, products, production capacity and full contact details including website address. Companies profiled are Acidchem International, Akzo Nobel Oleochemicals, Cognis Oleochemicals, Derichem, Esterchem, FOI Industries, FPG Oleochemicals, Pan Century Edible Oils, Southern Acids, Stabilchem, Uniqema Malaysia, all located in Malaysia, Symex Holdings (Australia), Oleon (Belgium), Peter Greven Fett-Chemie (Germany), PT Sumi Asih/Derifats Chemicals (Indonesia), United Coconut Chemicals (Philippines), Karlshamns Tefac (Sweden) and Imperial Industrial Chemicals (Thailand). The three largest producers are Acidchem, FPG Oleochemicals and Oleon. Together, the 18 listed companies have a combined oleochemical production capacity of about 2.28 M tonnes/year. Oils and Fats International, Mar 2004, 20 (2), 38-39
A solid year ahead for CPO Malaysian experts have forecasted that Malaysia’s average crude palm oil (CPO) price will range around Ringgit 1600-2100/tonne during 2004 due to high demand and tight stocks and supply, up on the average CPO price of Ringgit 1544/tonne in 2003. During Sep 2003-Feb 2004, the global market price of palm oil was $115/tonne and palm kernel oil was $185/tonne. The global demand for palm oil has surpassed production from 2001 onwards, while stocks also reduced drastically. The Star, 5 Mar 2004 (Website: http://www.thestar.com.my)
Other Lion poised to expand methyl ester Plans to expand methyl ester capacity have been proposed by Lion Corp. MAY 2004
RAW MATERIALS Linear alkylbenzene LAB market profile In 2003, global linear alkylbenzene (LAB) capacity was 3 M tonne/y, whilst worldwide demand totalled 2.4 M tonnes. Plant operating rates were around 80%, and global oversupply is anticipated for the next few years. Consolidation may occur in the industry. Almost all LAB output is used to produce linear alkylbenzene sulfonate (LAS) detergent surfactants. Asia-Pacific accounted for 42% of capacity in 2003, followed by the NAFTA region (19%) and Western Europe (19%). In 2006, global capacity is expected to be 3.67 M tonne/y, with 42% sited in Asia, 17% in the Middle East/Africa, 15% in the NAFTA region and 13% in Western Europe. The main LAB producers include Sasol, with plants in Italy, and Baltimore, MD, and Lake Charles, LA, in the US, and Petresa, with plants in Spain, Canada and Brazil. Global growth rates of 2-3%/y are forecast, with growth in Asia expected to rise by 4-5%/y. In 2006, Qatar Petroleum will open a 100,000 tonne/y plant in Mesaieed, Qatar, and Gulf Farabi will start up a 70,000 tonne/y plant in Al Jubail, Saudi Arabia. A 50,000 tonne/y plant will be opened in Iran in 1H 2004 by Bisotoon Petrochemical and a 30,000 tonne/y unit will be started up in Dubai by Emalab. European Chemical News, 23 Feb 2004, 80 (2088), 15
Huntsman raises LAB price Huntsman Petrochemical has announced a 6% price rise for all grades of LAB, effective from 1 Apr 2
O N
S U R FA C TA N T S
2004. The company cites continuing high costs for raw materials, including benzene, paraffin and natural gas. Chemical Week, 17 Mar 2004, 166 (9) (Website: http://www.chemweek.com)
Fluor gets LAB contract in Egypt Egyptian Petrochemicals Holding Co (Echem) has chosen Fluor Daniel as the managing contractor for its previously announced 80,000 tonnes/y LAB plant at Alexandria, Egypt (Focus on Surfactants, Nov 2003). Chemical Week, 31 Mar 2004, 166 (11) (Website: http://www.chemweek.com)
Indian LAB market may see price slump Analysts believe that the price war witnessed in India’s detergent segment is likely to extend to the LAB segment (p 5) as well, due to surplus capacity. The cost of LAB is Rup 54,000/tonne. LAB accounts for about 30% of the detergent production cost. The LAB segment has an installed capacity of 350,000 tonnes/y compared to a demand of 320,000 tonnes/y. The surplus capacity is expected to increase to 150,000 tonnes/y soon as Indian Oil Corp (IOC) is set to commission its 120,000 tonnes/y LAB plant in Vadodara by Jul 2004. At present, the Indian manufacturers are forced to sell the surplus stock in low margin Chinese and European markets. IOC has signed an agreement with HLL to supply LAB at lower cost. Business Line, 23 Mar 2004, 11 (82), 1
Alpha-olefins Outlook for alpha-olefins On recovery of the global economic market, growth of 6%/y is expected for the C12-C16 range of alphaolefins used in the manufacture of detergent alcohols. A further 3-5 years will be needed before operating rates begin to rise and the markets become more balanced. New projects are currently being announced by petrochemical producers in the Middle East. Oils and Fats International, Mar 2004, 20 (2), 9
Oleochemicals Global oleochemicals producers survey 2004 Oils and Fats International has published an updated survey of global oleochemicals producers. For each manufacturer (the majority of which are based in Malaysia and process palm and palm kernel oils), the survey lists the raw materials used, products, production capacity and full contact details including website address. Companies profiled are Acidchem International, Akzo Nobel Oleochemicals, Cognis Oleochemicals, Derichem, Esterchem, FOI Industries, FPG Oleochemicals, Pan Century Edible Oils, Southern Acids, Stabilchem, Uniqema Malaysia, all located in Malaysia, Symex Holdings (Australia), Oleon (Belgium), Peter Greven Fett-Chemie (Germany), PT Sumi Asih/Derifats Chemicals (Indonesia), United Coconut Chemicals (Philippines), Karlshamns Tefac (Sweden) and Imperial Industrial Chemicals (Thailand). The three largest producers are Acidchem, FPG Oleochemicals and Oleon. Together, the 18 listed companies have a combined oleochemical production capacity of about 2.28 M tonnes/year. Oils and Fats International, Mar 2004, 20 (2), 38-39
A solid year ahead for CPO Malaysian experts have forecasted that Malaysia’s average crude palm oil (CPO) price will range around Ringgit 1600-2100/tonne during 2004 due to high demand and tight stocks and supply, up on the average CPO price of Ringgit 1544/tonne in 2003. During Sep 2003-Feb 2004, the global market price of palm oil was $115/tonne and palm kernel oil was $185/tonne. The global demand for palm oil has surpassed production from 2001 onwards, while stocks also reduced drastically. The Star, 5 Mar 2004 (Website: http://www.thestar.com.my)
Other Lion poised to expand methyl ester Plans to expand methyl ester capacity have been proposed by Lion Corp. MAY 2004