Pursuit of high margin esters key in price erosion fight

27 March 2004 09:27  [Source: ICIS news]

LONDON (CNI)--Developing higher margin esters for niche markets is the best way to counter price erosion, according to the latest report* from consultancy Frost and Sullivan (F&S).


“Low-cost Asian products are intensifying price sensitivity due to liberalisation policies implemented by the World Trade Organisation (WTO), which has lowered tariff barriers and created a competitive global market,” says F&S technical insights analyst Rejesh Kannan.


He said that European manufacturers are exporting certain esters, such as glycerol and monohydric alcohol, from their Asian plants to survive in the market.


Kannan added: “Compounding the issue of price pressure are the stringent policies of regulatory agencies, such as the US Food and Drug Administration (FDA), the Environmental Protection Agency (EPA) and Occupational Safety and Health Administration that largely impact the fatty ester market.”


World Fatty Esters Market, code numbered D483, can be obtained by contacting the consultancy at www.frost.com or www.technicalinsights.frost.com
By: Glenda Thisdell
+44 20 8652 3214

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