Southeast Asia Oleochemicals To Make A Living "diversification "

Author: dudu
As rich in raw material supply, Southeast Asia is expected to become the center of oleochemicals industry. United States Frost & Sullivan recently published studies have reported that fatty acids and fatty alcohols present in Southeast Asia has begun to show the market situation of supply exceeding demand, natural glycerin market outlook still uncertain, and refined glycerin market is at a stage of development. Increasing challenges faced by Southeast Asian governments are pursuing product diversification strategy, developing downstream derivatives.

    Southeast Asia's oil industry, chemicals used palm oil, palm kernel oil and coconut oil, renewable raw materials, is a capital intensive and export-oriented industry. Southeast Asia is located at the junction of the Pacific and Indian Ocean, suitable soil and climate make the area of palm oil, palm kernel oil and coconut oil supply stability, a favorable geographical location more conducive to Southeast Asian oil-producing countries around the Indian Ocean to the Pacific and the national output products. Meanwhile, the Southeast Asian countries with low rates and cheap money and ample labor costs also attract a large number of foreign investment into, it is expected to become the center of the world's oil chemical industry.

    Southeast Asia oleochemicals sectors of the economy due to rounding. Malaysia is the world's largest oil producing chemicals, chemicals, oil production accounted for 20% of the global total. Malaysian low-cost but very limited area for planting, so the owners of oil palm cultivation through with the new hybrid palm oil is no longer the result to replace the old oil palm trees, and gradually extend to overseas in order to maintain the gross output of palm oil . In view of the natural world demand for oleochemical products, the Malaysian Government to encourage the development of oil and its downstream derivative products of chemicals. Philippines oleochemicals industry faces major problems is the lack of large scale of planting, can not guarantee a continuous supply of raw materials, and therefore its oil and chemical production process although diversification has made continuous progress, but there is no substantial increase in output . Indonesian oleochemicals sector plays a decisive role, the main production basis of these two fatty acids and fatty alcohols oil chemicals, the government also encourages the diversification of product development and downstream process development.

    Currently, the region oleochemicals markets shown a trend of polarization: on the one hand, due to lack of new R & D investment, the lack of a partner to develop downstream products, local manufacturers of chemical products is still the main oil production base; the other hand, foreign firms with advanced technology and equipment, high-end production in Southeast Asia, oil chemicals, such as gender and anionic surfactants, personal care raw materials and food processing fatty acids.

    In the future, Southeast Asia, oleochemicals industries will experience the same, palm oil, coconut oil, vegetable oil for the biodiesel industry challenges. Biodiesel is a natural by-product glycerol, rapidly growing biodiesel industry led to overcapacity in natural glycerin, explore new areas of application is urgent. However, due to higher profit margins, although both refined glycerin from energy, technology or in terms of labor costs, will require substantial investment, the market outlook remains favorable. Meanwhile, the fatty acid and fatty alcohol market has become increasingly acute contradictions of supply exceeding demand.

    In the next 2 to 3 years, raw materials and energy prices remain high, the profits of market participants will be diluted. As the oil chemical industry and the rapid development of bio-diesel industry, oil chemicals, raw material prices have continued upward trend. Furthermore, the production of chemicals to undergo pyrolysis oil, refining and distillation processes consume a lot of energy. Medium to long term, because of higher international oil prices to regain the expected trend of increasing cost of energy needed for production may increase, on the oil industry, chemicals posed serious challenges.

    Increasingly stringent environmental regulations will affect the Southeast Asian oil chemical industry. Southeast Asian oil to Europe has always been an important market for exports of chemicals is one, with the implementation of REACH regulation, exporters need more rigorous testing, or develop new products to enter the EU market, it will increase oil production and testing of chemicals cost. This, however, manufacturers of chemicals for the oil has brought new opportunities: the user is not allowed because the industry is prohibited by Article REACH chemicals, they had to find suitable alternatives, and the first products of the oil price to provide the right chemistry product manufacturers will benefit from it.

Article Source: http://www.articlesbase.com/corporate-articles/southeast-asia-oleochemicals-to-make-a-living-diversification-3237160.html

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