Malaysia May oleochemicals exports up by 5.98% amid strong demand

05 July 2011 04:35  [Source: ICIS news]

SINGAPORE (ICIS)--Malaysia’s oleochemicals exports in May this year were up by 10,243 tonnes or 5.98% from April in line with strong global demand, traders said on Tuesday.

“Compared with April, oleochemical exports increased as this [period] is the traditional peak season for oleochemical production [because of] the booming downstream demand,” a Malaysia-based trader said.

“Downstream applications such as cosmetics, tyre and detergent manufacturing [are at their] typical peak in summer, thus this has increased the demand for oleochemicals and oleochemical exports,” a Malaysian oleochemical producer added.

Oleochemicals such as glycerine, fatty acids, fatty alcohols and soap noodles are used to make various end-user applications from cosmetics and personal care goods to surfactants and detergents.

Oleochemicals are also used as feedstock chemicals in the manufacture of alkaline resins and animal feed.  

“I expect oleochemicals exports to continue to rise month on month this quarter until September [because of] the peaks in production and seasonal demand,” the producer said.

“After October, demand will typically enter its lull season,” the producer added.

According to Malaysian Palm Oil Board export figures, 181,262 tonnes of oleochemicals were exported in May this year, up from 171,019 from April.

The country’s oleochemical exports rose by 1,497 tonnes in May this year from 179,765 tonnes in May 2010.

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By: Serena Seng

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