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 ?xml:namespace>
Brunskill added that the market in
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.
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