US fatty alcohol market mulling potential effects of RSPO issues

15 July 2013 21:46  [Source: ICIS news]

HOUSTON (ICIS)--The US fatty alcohol market is mulling potential effects of issues involving the Roundtable on Sustainable Palm Oil (RSPO), buyers and sellers said on Monday.

RSPO was formally established in 2004 in response to growing global demand for vegetable oils and concerns about increasing expansions of palm oil plantations and the potential impact of these upon forests, wildlife and communities. Its RSPO Certification System was adopted and launched in 2007, with the first certification issued in 2008.

RSPO is an ongoing consideration for US buyers trying to understand if initiatives will affect price structures,” a large detergent-range alcohol buyer said.

“Sustainability issues derived from RSPO may need to be taken into account,” a seller commented.

US fatty alcohol buyers engaged in industrial applications are discussing potential premiums on vegetable, or natural, based alcohols that could develop because of additional costs involved in participating in the RSPO initiatives.

Fatty alcohol buyers with end-uses in cosmetics and personal care sectors are weighing the possible benefits being certified by the RSPO versus the potential costs, as consumers of these products can differ widely from those in the industrial surfactant models.

The US is a significant importer of palm-based fatty alcohols from Asia, as Malaysia and Indonesia are key production regions for these materials.

By: Judith Taylor
+1 713 525 2653

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