Europe, North America oleochemicals sector to shrink - adviser

21 October 2009 14:57  [Source: ICIS news]

BERLIN (ICIS news)--European and North American oleochemical production will shrink over the coming years, Alan Brunskill, an oleochemical adviser, said on Wednesday.

“The future production will be in southeast Asia, supported by growth in China, India and Latin America,” Brunskill said at the 7th ICIS World Oleochemicals Conference.

Brunskill added that the market in Japan would completely disappear due to a lack of raw materials and competition in the region. 

Market participants confirmed the growing trend of big European and North American exits from the oleochemicals industry.

“Henkel, Cognis and Unilever to name but a few have exited the market, while Kulim, Kwantas and Teck Guan are now some of the big players,” one source said.

Several players noted that as well as a geographic shift, pricing fundamentals had also changed in recent years, and that oleochemicals were now closely linked to petrochemicals.

“Raw material prices used to be decided by food uses but [they are] now decided by the dollar per barrel of petroleum,” a source said.

To discuss issues facing the chemical industry visit ICIS connect

By: Dan Horlock
44 20 8652 3214

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly