The Soap Noodles price report is published by ICIS in Asia. The 80/20 blend price assessments cover southeast Asia, China and India. Our locally-based reporters provide independent market intelligence that provides the reader with news on market overviews, regional activity, feedstock movements and any other key factors influencing the market at the time. Use this essential tool to help support vital commercial choices.
Soap Noodles Overview Transcript
Soap noodles are produced from the saponificatoin of oil, the neutralisation of fatty acids. In Asia the saponification of fatty methyl esters is important, especially in Malaysia, Indonesia, the Philippines, India and China.
The common feedstocks used are palm oil, palm kernel oil and coconut oil. A typical blend would be an 80:20 standard, comprising 80% palm oil and 20% palm kernel oil or coconut oil. While there are other blends available in the market 80:20 is generally recognised by the industry as being the optimum grade. It has a good balance of lather, rate of wear, cleaning ability and hardness.
In Asia prices are usually driven by movements in the feedstock sectors.
The market is very active during the traditional peak summer months but enters a lull in the winter. Spot deals are usually for smaller packages, under 1000 metric tonnes, whereas larger deals are usually concluded on a quarterly contact basis.
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Soap noodles: Market overview
Updated to Q4 2016
Asia: Demand for standard blend 80/20 soap noodles in Asia is expected to remain sluggish for the rest of the year, putting downward pressure on spot prices. Volatility and an unfavourable outlook of raw material prices have further dampened market sentiment. With the winter lull approaching, market participants are not expecting demand to improve until next year. A wide buy-sell gap will continue to be an obstacle to trade discussions with producers unable to come up with a compromise due to high palm oil prices, and buyers struggling to pass on any increase in costs. Recent predictions from market analysts, suggesting that palm oil prices will decline significantly, have prompted buyers to err on the side of caution.
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Soap Noodle Methodology
About Soap noodles
Soap noodles are the sodium salt of fatty acids from oils or fats of both animal and vegetable origin. Soap noodles are used as the main ingredient in the production of soap bars.
A typical blend would be the 80/20 standard comprising of 80% palm oil and 20% palm kernel oil or coconut oil. While there are other blends available in the market such as 70:30, 60:40 and 90:10.
In southeast Asia, soap noodles are mainly made from palm oil blended with either coconut oil or palm kernel oil.
In China, soap noodles are made from animal fats (tallow), palm oil or a blend of both.
In India, soap noodles are made from palm fatty acid distillate and palm stearin.