India’s Gulshan Polyols halts sorbitol exports on production woes

27 June 2012 11:19  [Source: ICIS news]

SINGAPORE (ICIS)--Gulshan Polyols Pte Ltd, the biggest sorbitol producer in India, has temporarily stopped exporting products since last week as domestic production is being constrained by a shortage of hydrogen gas, a company source said on Wednesday.

Hydrogen gas is an essential component in the hydrogenation process involved in the manufacture of sorbitol.

India's current shortage of hydrogen gas is expected to persist for two to three months, according to market participants.

“This is affecting our supply badly. We cannot commit to the customers’ [export] orders,” said the source from Gulshan Polyols.

Gulshan Polyols can produce 45,000 tonnes/year of sorbitol at its facility in Gujarat.

Most sorbitol producers in India are currently running their plants at reduced rates of about 60-70% and they are shunning exports given tightening supply, according to market participants.

Indian producers are keeping their domestic sorbitol offers at rupees (Rs) 34/kg ($596/tonne) ex-factory and are not inclined to raise prices as the move might facilitate entry of lower-priced Chinese-origin sorbitol into the domestic market, like what happened in Indonesia and Thailand, market sources said.

($1 = Rs57.02)

By: Jasmine Khoo
+65 6780 4359

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