A Peek Into the Ammonium Bicarbonate Market

Previously, we dealt with the sodium bicarbonate compound. For this week’s discussion, the chemical product ammonium bicarbonate will be discussed. Similar to sodium bicarbonate, ammonium carbonate also functions as a raising agent. Ammonium bicarbonate is an ammonia containing salt that decomposes at low temperatures to liberate out ammonia, water and carbon dioxide. It is also known as baker’s ammonia.

ammonia biscuit

Ammonia Biscuit

 

Baker’s ammonia is made simply by reacting carbon dioxide with ammonia. Due to its thermal instability, ammonium bicarbonate is stored in a cool and dry place. Usually, ammonia is stored as ammonium bicarbonate which can simply react with a base to liberate ammonia. One of its advantages is that it does not liberate any pungent smell. Baker’s ammonia sometimes is the preferred leavening agent as it produces a light, fluffy and crispy texture of bread.

 

Banh Tieu
Banh Tieu, a Vietnamese Donut made with Ammonium Bicarbonate

 

The ammonium bicarbonate market can be divided into upstream and downstream levels. The former refers to the sourcing and extraction of raw materials to industrially produce the ammonium bicarbonate. The latter is typically defined as the actual sale of the product or further processing of the product to its final phase where it will be ready for sales. From the upstream standpoint, the prices of the raw materials i.e. carbon dioxide, water and ammonia are stable. A constant supply of the raw materials are also available and the production capacity of the manufacturers is unaffected as well. The same is observed for the downstream level – the demand for ammonium bicarbonate is stable. Based on these current market trends, the ammonium bicarbonate market will be stable hence implying that its price will be stable in the coming months or even for the coming years.

 

By: Zaki

Meanwhile, stay tuned for our next update! For more information, vist http://food-chemicals.com/ for a diverse range of chemicals present in our database.

Seeking sustainability for palm chemicals

In previous entries, we analyzed the palm chemical industry and compared palm products (i.e crude palm oil and palm kernel cake) with their respective substitutes. For this entry, we will discuss the sustainability for palm chemicals.

As a versatile and low-cost raw material, the thumb-sized palm fruit has created one of the largest emerging economies. Its oil and chemical derivatives are used in many industries ranging from food to detergent and cosmetic. Popularity of palm chemicals is reflected by the global demand that has increased from 15 million tons in 1990s to 60 million tons today.

Borneo forestBorneo forests cleared for oil plantations

However, its widespread usage has also brought about concerns over the environmental costs. In order to plan for palm trees plantation, countries or firms resort to plowing forests, thereby destroying endangered species and releasing many greenhouse gases. Indonesia, for example, has one of the largest tropical forests globally but is facing the problematic issue of deforestation. According to a 2007 United Nations Environmental Programme (UNEP) report, the entire forest will be destroyed by 2022 based on current conservation efforts. Public image of palm plantations firms are hardly pleasant but this has not deterred the high consumption of palm chemicals. Chemical firms are not spared of criticism due to their heavy usage of palm oil to produce “green” products. To further complicate matters, sustainable energy advocates are condoning forests clearance activities on the basis of harvesting palm oil for sustainable biofuels.

A few green solutions have emerged so that palm chemicals can be more palatable for all parties. Among them, the most prominent is the creation of Roundtable for Sustainable Palm Oil (RSPO) by palm oil producers and users as a platform to address the sector’s environmental impacts. In order to qualify as a RSPO member, companies have to show continual improvement and progress towards being environmentally friendly. In order to ensure that its 855 members can easily source for sustainable palm oil, RSPO devised two supply-chain certification systems, namely mass-balance and segregation. The mass balance approach is based on monitoring and ensuring that the volume of sustainable palm oil used does not exceed those being produced. In this system, both sustainable and unsustainable oil can mix while they travel the supply chain. The segregation certification system is much more complex and harder to implement. It involves segregating the sustainable oil from conventional fuels at every stages of the supply chain. The transparency offered by these certificates is a major step towards palm chemicals being environmentally friendly. Some critics suggested an easier option of using palm chemical substitutes, which may not be feasible in some industries. Peter Becker, a key accounts manager from German cosmetic firm Evonik, echoed this sentiment by citing difficulties in processes and additives required if a substitute was used.

RSPO_2RSPO Certification system

Progress of Roundtable for Sustainable Palm Oil has been questionable at times with problems of slow-paced changes and the lack of protection measures implemented against tropical forests clearing for palm plantation. Bright spots are few such as the declaration by the Netherlands, UK, Germany and Denmark in pledging support of fully sustainable palm oil chain by 2020. Nevertheless, it is a good beginning and RSPO does deserved recognition and praise for its pioneering efforts in seeking sustainability for palm chemicals.

I hoped you enjoy reading this article. If you have any queries about palm products, do visit our website at palm-chemicals.com or drop me a mail at contact@chemtradeasia.com.

By: Wen Hao

The Market Prospect of Leather Industry

Tannery
Tanner

Leather has been around for a very long time and so is the profession of tanner. The evidence can be traced back from ancient literature text such as when Aristotle cites Socrates: “There are four professions to be the fundamentals of the citation of state: The architect, the weaver, the farmer and the tanner”. From the ancient times, leather has been used by our ancestors to do various applications. the Sumerians used skins for long dresses and diadems for ladies. The Assyrians used leather for footwear but also for liquid containers and as inflated floats for rafts.  The ancient Indian civilization first processed the type of leather known as the “Morocco” today. Today leather is mainly used as raw material to produce various accessories and apparels and for various usages.

 

Leather is durable and flexible. It also has a long lifespan and provides comfort for its users. Because of these properties, the demand for leather products becomes increasingly high. The high price for leather product is caused by the relatively high production cost. Mostly because of the expensive cost of cattle care and the large number of chemicals used. The limited number of expert craftsmen and hides produced are also a contributing factor to the high production cost. Therefore, owning leather becomes a symbol of status and only a handful of people can afford it.

 

The high demand for leather can be seen by statistics from www.statista.com:

Value of the leading leather footwear importers worldwide in 2013 (in million U.S. dollars)

Leather graph 1
Import Values for leather shoes in 2013
Leather_list of countries
List of top exporting countries for leather shoes in 2015

 

The total import value of footwear alone in 2013 reach more than $30 billion with America in the top list. From this data shown above we can conclude that leather market is really a large market with considerable amount of Dollar is being circulated yearly. In addition to the above data, the market forecast for leather promises a bright prospect. The projection can be seen below:

Leather_graph 2Figure 4. Global Market Projection for leather market

The market is projected to reach $4.3 million by 2020, growing with CAGR of 7.64% between 2013 and 2020. The relatively constant growth of the market shows market potential which has not been utilized.  By using this information, surely entering leather market will be a great investment with promising return. Moreover, the increasingly expanding market will also give rise to more players in this market; creating more job opportunities and helping government fights unemployment.

Fun fact of leather industry: It is estimated that more than one million tonnes of hides and skins containing about 2.8 megatons of collagen are used yearly worldwide for leather production. The industry produces about 18 billion square feet of leather yearly and creating profit of $40 billion from its sales. Asian countries accounted for highest Dollars with value of leather shoe export shipment at 26.6 billion Dollar followed by European at $25.1 billion. In 2016, user penetration for leather shoe is at 17.34% and is expected to hit 24.52% in 2020. With that in mind, the revenue is expected to show an annual growth rate (CAGR 2016-2020) of 11.01%.

The leather market has brought prosperity to not only for its customers but also for its manufacturers and chemical suppliers. A good example from the manufacturing part is the fact that more than 500,000 tanners worldwide are working for leather industry, moreover this number increases for further downstream manufacturing process. The leather chemicals show most prominent growth in developing countries due to the rapid growth of leather industries. China and India are dominating in specific chemicals for tanning and dyeing purpose while some European countries are more into the finishing chemicals.

Tradeasia prides itself as one of the best leather chemical supplier you can find on the internet. We sell various chemicals for different stages of leather manufacturing process with the best quality and superb services. In the meantime, feel free to drop by our company website leatherchemical.net to browse our catalogue for chemicals relevant to the leather industry or follow us on Facebook and Twitter.

By          : Vincent Kiathadi

A Peek Into the Sodium Bicarbonate Market

In this week’s post, we will shift from the topic of sweeteners and explicate the role of food chemicals as leavening agents. The scope of discussion for this entry will be on sodium bicarbonate.

Leavening agents are also known as raising agents. They generally refer to substances used in doughs and batters that cause a foaming action that lightens and softens it, by incorporating bubbles of gas into it. Fundamentally, leavening agents are widely used in the baking industry to produce pastry products.

Muffin ImageMuffins Baked With Raising Agents

One key example of a leavening agent is sodium bicarbonate. It is more commonly known in the baking world as baking soda or the bicarbonate of soda. Sodium bicarbonate reacts with little amount of acid such as vinegar or buttermilk that will soften and lighten dough in bakery due to bubble formation.

The bicarbonate of soda is industrially manufactured from soda ash by the Solvay Process. Soda ash is first manufactured via the Solvay process using reactants such as sodium chloride and ammonia. Carbon dioxide is obtained from calcium carbonate and the resulting calcium oxide will be used to regenerate ammonia. By adding purified carbon dioxide to soda ash, the mixture yields sodium bicarbonate.

However, it is noted that it is no longer economically viable to produce the bicarbonate of soda via the Solvay Process in the United States. Most of the soda ash in the United States is acquired by mining the mineral Trona, Na2CO3•NaHCO3•H2O in Wyoming. Trona is a sodium carbonate compound that is processed into soda ash or baking soda. Wyoming has the world’s largest deposit of trona, supplying about 90% of the nation’s soda ash. This mineral is Wyoming’s top export product and is shipped globally. Wyoming mines produced over 17 million tons of trona and employed 2,483 people in 2015.

Trona MineralThe Trona Mineral

In 2014, the volume of the sodium bicarbonate production globally grew by 4%. At present, the sodium bicarbonate market is growing at a stable pace, owing to its wide usage in the healthcare and food sectors, accounts for over 50% of total product consumption. China captured close to 35% of the total sodium bicarbonate output in 2014, and the U.S. came in second with a share of just over 20%. As of 2014, Asia, led by China, dominated sodium bicarbonate consumption with around 37.5% share of total demand. Europe and North America came second and third with shares of around 26.1% and 21.2%, respectively.

Forecasts suggest that the sodium bicarbonate market will grow at 4-4.5% per annum by 2019, driven primarily by Asia and especially China. The region is poised to dominate both the production and consumption of sodium bicarbonate in the upcoming years. The European market for sodium bicarbonate is expected to demonstrate annual growth at just over 2% over the forecast period.

The sodium bicarbonate market can thus be projected to experience continuous growth worldwide. The increasing demand for sodium bicarbonate globally can generate lucrative revenue for companies engaged in sodium bicarbonate trading.

Meanwhile, stay tuned for our next update! For more information, log on to http://food-chemicals.com/ for a diverse range of chemicals present in our database.

By: Zaki

A Deeper Look inside the Leather Industry

Leather is a material from animal skin or hide that has undergone various physical and chemical processes to make it immune to microbes. The immunity is needed to prevent the microbes from consuming the skin and causing it to rot. The skin itself is subjected to bacteria attack even before the animal is flayed. Due to daily contact with its environment, as much as 1-2 billion bacteria/cm2 inhabit the skin. The number increases when the flayed skin is being processed to leather, due to contact with various equipment during tanning processes. Without proper treatment the skin will experience putrefaction, which is the process of decay in body, and loses its value.

LeatherFigure 1. Leather

To create fine leather, hide and skin need to be processed through multiple steps. The steps of this process can be divided into 3 major categories: pre-tanning, tanning and finishing. Pre-tanning prepares the skin and hide in order to ease penetration by tanning agents during tanning steps. During tanning, the tanning agent penetrates into the collagen structure and bounds to it. Finishing step is for manufacturers to apply different chemicals to tanned skins to achieve their desired properties.

Pre-tanning:

  1. Preservation
    Within 2 hours after the skin is flayed, proper treatment to preserve the skin is necessary to stop its rapid putrefaction. Introducing solution such as salt with biocides helps its preservation and to stop the skin to lose its commercial value. The salt helps to draw water out from the skin, avoiding bacteria to develop inside.
  2. Soaking
    The dehydrated skin is then soaked with water to keep it hydrated. Water is used as a vehicle for both chemical penetration and removal, also as a prerequisite for future processes. Soaking can also be used to remove non-structural protein and fat.
  3. Unhairing
    The skin is then steeped into alkali solution to break down its hair structure. The hair root is being targeted together with keratin (an important hair protein) by breaking down sulphur-sulphur bond inside its cysteine linkage.
  4. Liming
    The hairless skin is then soaked in alkali and lime to remove keratin protein. During the liming process, the skin structure swells because water is drawn into collagen fibre network and forms a turgid, open structured, translucent and jelly-like material. The bond between epidermis and dermis also weakens and characteristic pattern is created after the liming process
  5. Deliming
    Weak acid is introduced during this step to lower the pH of the skin. The swell reduces and the water flush out any impurities with it.
  6. Bateing
    The bateing process makes hides pliable and prepare them for tanning process. Enzyme is introduced here to further open skin structure and to make pelt smooth and silky. Proteases are used to remove scud and unwanted proteins. The process also deswells swollen pelts.
  7. Pickling
    Bated pelt is later treated with acid to obtain a pH for optimal penetration of tanning agent.

Tanning:

  1. Pre-Tanning
    The prepared skin is tanned lightly to improve the penetration and distribution of tanning chemical by adding specific properties into the leather
  2. Tanning
    Allowing tanning agent to enter skin and penetrates into the collagen structure and bound to it through basification process. The tanning stabilizes skin structures by replacing collagen with ions such as chromium.

tanned leatherFigure 2. Tanned Hides

Finishing:

  1. Neutralisation
    The excess acid on the leather is neutralized to allow anionic chemicals such as dyeing agent to react with the leather substrate. Subsequent reactions such as dyeing utilize anionic chemicals for their colour. The removal of unwanted acid therefore becomes a necessary course of action.
  2. Dyeing
    Chromium tanning turns the hide It must be dyed to obtain desired colour.
  3. Fat liquoring
    Tanned fibre is treated with reactive oil to serve as a lubricant.
  4. Drying
    To make the chemical binds better by drying the tanned leather inside heated tunnel for 4-6 hours.
  5. Finishing
    Several finishing chemicals are added to ensure the compatibility of the skin and to hide defects and improve its display.

In the meantime, feel free to drop by our company website leatherchemical.net to browse our catalogue for chemicals relevant to the leather industry or follow us on Facebook and Twitter.

By : Vincent Kiathadi

Increasing Demand For Chocolate Outstrips Cocoa Supply

“Money cannot buy happiness. But it can buy chocolate, which is pretty much the same thing.”

-Hanako Ishii

Chocolates have been a source of happiness for those who consume them because it contains serotonin. Improved serotonin content in our body improves our happiness and livens up our mood accordingly.

Have you ever thought about the origins of chocolate? If you have, then this article will answer your doubts!

Chocolate_Quote

Chocolates originate from cacao trees. Cacao trees produce cocoa beans which are then packed into sacks and sold to intermediaries where they are then manufactured into chocolates. The cocoa beans are first processed by intermediaries in their factories. The beans are crushed and the shells are then removed, roasted, and finally grounded. The product is cocoa liquor which is then used to manufacture chocolate, or is further processed to cocoa butter and cocoa powder.

The market forecast for cocoa and chocolate is set to be a lucrative business. There is an increasing demand for chocolate. An average Westerner consumes approximately 22lbs of chocolate every year – the same as 220 small bars of Cadbury’s Dairy Milk. Ten cacao trees are required just to supply that number of bars. 3.5 million tonnes of cocoa are produced each year. However rising incomes in emerging economies like India and China, combined with anticipated economic recovery in the rich North Hemisphere, have led to industry forecasts of a 30% growth in demand to more than 4.5 million tonnes by 2020.

CocoaPowder

Unfortunately, despite this positive outlook for chocolate, global demand of cocoa and chocolate is expected to outstrip its supply. The increasing demand for chocolate is overtaking its supply. As prices of food and other costs rise, negative implications are brought upon the farmers. Low revenue attained by the farmers translate to low productivity and poverty in farming communities. The failure to capture sufficient value from their crop means that many cocoa farmers are abandoning the industry in search of greener pastures. Many of their children see no future in cocoa and are switching to more profitable rubber production or heading for the cities in the hope of finding a better life .

As a result, the average age of cocoa farmers in West Africa is now 51, leading to grave concerns across the industry about the long-term sustainability of the supply chain: no cocoa farmers lead to no chocolate bars in future. Moreover, most of these farmers use obsolete farming techniques and lack funds to invest in fertilisers or in replacing ageing trees past their peak productivity.

The rate of production of cocoa and chocolate is apparently slower than its consumption rate. The increasing demand for chocolate calls for the supply to be increased i.e. more land should be allocated to increase the supply of cocoa and there should be greater earnings granted to the farmers in the stakes that they hold. A paradoxical situation is presented for the case of cocoa and chocolate. The cocoa business sees a good market for itself in the near future while at the same time, a gloomy market for chocolate may result in the long run due to supply deficits. More needs to be done to ensure the longevity of cocoa and chocolate or regret will be the product of our inaction. As quoted by Marja McGraw, “Chocolate is something you take for granted until you don’t have any.”

Meanwhile, stay tuned for our more updates for the Food Industry! For more information, log on to http://food-chemicals.com/ for a diverse range of chemicals present in our database.

By: Zaki

Crude Palm Oil price correlation

The first trace of crude palm oil (CPO) in human history dates back to a 3000 BC Egyptian tomb in Abydos during which it was used for food and medicinal purposes. Through the ages, its applications have diversified into uses such as as a machinery lubricant during Britain’s industrial revolution. Recently, it has emerged to be a feedstock for biodiesels due to the environmentally friendly movement and concerns over petroleum prices. Blessed with suitable tropical climate and intense Research and Development, the crude palm oil market today is dominated by Malaysia and Indonesia which together accounts for 86% of global production. In this post, we will be introducing a brief overview of crude palm oil and analyzing the price correlation between palm oil substitutes.

Palm_PlantationA palm oil plantation in Malaysia

General description

Some facts about crude palm oil are listed below but are non-exhaustive:

  1. Deep reddish colour of CPO reflects its high content in natural carotene and vitamin E.
  2. CPO is often confused with palm kernel oil, which has different fatty acid composition and comes from a different source.
  3. As with other crude oils, CPO can be refined and processed to remove purities such as trace metals and fruit shells before it can be used for wider applications. The most popular refining technique is RBD, which stands for refined, bleached and odorized.

Manufacturing process:

Palm fruits are first removed from the spike-laden bunch stem either by manual labor or by the mechanic bunch thresher. During the milling process, the fruits are sterilized, digested under high temperatures and pressed. CPO is extracted and separated from the palm kernels.

Price correlation between palm oil substitutes

Palm_ChartGlobal edible oil production

In the previous post about palm chemical industry analysis, I listed some factors about palm oil market such as adverse weather conditions, increasing environmental concerns and price of related commodities. Today, we will be analysing more in depth towards price correlation with regards to crude palm oil.

Price correlation between palm oil substitutes(i.e. in this case, edible oils) is understandable from the figure above. However, the crude palm oil market is actually much more complex than it seems.

In the long run, end users will be inclined to switch to another edible oil if one product becomes too expensive while producers will have the incentive to increase production of the higher-priced product. This trend is reflected in the figure 2.

In the short term, the prices may correlate differently. Soya bean oil, the popular edible oil after palm oil, is produced mostly in USA, Brazil and Argentina. There may be a year during which these regions have exceptionally high soya bean yield while drought in SEA results in low palm oil supply. Palm oil scarcity will result in its high price and an increase in demand of soya bean oil. However, this demand increase will not compensate the high abundance of soya bean oil and its price remain low.

 

Words from author:

I hope you enjoyed reading this article. If you are interested to know more about palm products, do visit our website at palm-chemicals.com or drop me a mail at contact@chemtradeasia.com.

Wastewater Management in India and China

China

China is the largest emerging market for environmental technologies, with an overall environmental technologies market that is valued at US$ 27.35 billion in 2012. In the 2015 Top Markets Study, conducted by the U.S. International Trade Administration, China ranks 1st for overall environmental technologies and it also tops the global water treatment market.

The new effluent regulatory requirements and continued industrial expansion in some provinces such as Guangdong, Jiangsu, Shandong, Zhejiang, Henan and Fujian are the key growth drivers for the Chinese water treatment market. Power, chemicals, steel, leather, paper manufacture, and pharmaceuticals are major industries that propel the water treatment market in China.  Investments in water treatment market have reached over US$ 20 billion. As of 2014, China has more than 4,000 wastewater treatment plants and the number can be expected to increase at 6% per annum over the next five years.

Furthermore, the Chinese government continues to strive for higher water quality and greater accessibility to clean drinking water and sanitation services. This contributed to the extensive construction of wastewater treatment plants across China. In 2014, the Ministry of Environmental Protection (MEP) pledged to invest US$ 329 billion to treat municipal and industrial wastewater. The South-to-North Water Diversion Project also mandates the construction of over 400 wastewater treatment plants along the eastern route to treat severely polluted water bodies. The Chinese government also hopes to promote the protection and management of important water resources.

CanalA canal of the South-to-North Water Diversion Project

Beyond mechanical treatments, the Chinese government hopes to introduce improved chemical and biological methods. Some key technologies that are in demand are anaerobic digestion, nitrification, and biological denitrification. These are potential areas of research and development (R&D) for key players in water and wastewater treatment industry.

 

India

In India, the decline in per capita water availability creates a strong growth opportunity in the water treatment market. The unpredictable rainfall patterns and contaminated groundwater have had an impact on the growth of wastewater treatment plants. The per capita water availability is projected to decrease to 1,140 m3 by 2050.

In terms of water treatment market, the market is valued at US$ 2.54 billion and it is expected to grow at over 15.2 percent annually through 2018. Currently, only about 30% of effluent is treated before being released into water bodies. The government hopes to achieve the goal of zero discharge of untreated effluent into water bodies. It is estimated that US $126 billion is required over the next 20 years to achieve the goal of meeting India’s basic potable water needs.

The Jawaharlal Nehru National Urban Renewal Mission (JNNURM) is the largest source of financing for municipal water and wastewater projects. In the state of Bihar, there are plans to develop over 100 water treatment projects. In Maharashtra, the government also aids in establishing common effluent treatment plants (CETPs) where companies in the same industry can treat their wastewater together. There are also emerging opportunities in the ‘new industrial cities’ in India. An example is the Delhi-Mumbai Industrial Corridor (DMIC). The DMIC plans to establish seven new industrial cities, with a capital investment of US $90 billion in wastewater management.

Effluent Treatment PlantCommon effluent treatment plant in Delhi

Power plants, oil and gas, food and beverage, pharmaceuticals, textiles, and mining are major industries that are driving the water treatment market in India. The industrial water treatment market in India is projected to grow at a rate of 20 – 25 percent per year.

However, weak regulations and enforcements in the treatment of effluent increases the treatment complexity. The government is expected to tighten up the regulations and enforcement to achieve its goal of zero discharge of untreated effluent into water bodies. The plans to implement a tariff system to penalize industry players who discharge low quality effluent can also be effective in the long run.

 

To know more about chemicals used in effluent treatment, visit Chemtradeasia.

 

By: Saiful

Palm Chemical Industry Analysis

Simple Palm Chemical Industry Analysis

The Palm Chemical Industry continues to be shaped and driven by the popularity of palm oil as a low-priced vegetable oil for cooking purposes. Other uses include feedstock for biofuels, cosmetic ingredients and fragrances.

Grand View Research study (July 2015) projected the palm oil market to reach USD $88 million by 2022. It is notable, however, that the estimate is still subjected to market changes. Some factors that have or will influence the market are listed below but are no means exhaustive.

 

  1. Global economic slowdown and rising stockpiles

Questions about the estimate by Grand View Research are raised as early as August 2015 with news media such as Bloomberg reporting the worsening demand and price of palm oil. Reasons cited are anemic global economic growth and the falling prices of crude oil. Shifts in local market trends are another factor. China, a main palm products importer, has its demand affected by the development of local crushing capacity that has a preference of soyabean to palm oil. Global palm production, however, remains strong in the midst of slowing demand resulting in increasing stockpiles and falling prices. Malaysia inventories, for example, have risen by 28% and stands at a record high at 2.91M tons. Indonesia, another major palm producers, also has its inventories rising at 25% annually.

  1. Adverse weather conditions

Palm oil production is affected over the El Nino period in 2015. Indonesia, in particularly, was badly affected by drought conditions and lower rainfall. Although the production subsequently recovered after the passing of El Nino, the event shows the vulnerability of palm oil production to adverse weather conditions.

  1. Environmental concern

Another factor is the increasing environmental concerns over the deforestation practices to clear land for oil palm plantations. Several countries like the Netherlands have pledged to use only RSPO certified palm oil. The same sentiments on environmental sustainability are also shared by the supply side with major palm producers in Indonesia signing the Indonesia Palm Oil Pledge (IPOP). However, environmental compliance will increase cost of palm production and result in market uncertainty.

  1. Price of related commodities

Crude oil:

Over the last decade, evidence showed that prices trend for palm and crude oil were correlated. This correlation still remains in the new decade. The fall in crude oil prices from 2014 to 2015 resulted in a corresponding decrease in prices of the palm oil market. Palm oil is a feedstock for biofuels. Hence, it is not surprising that its economic viability as biofuels is affected with falling crude oil prices.

Price correlation between palm and crude oil (USD/ton)
Graph1

Soyabean oil:

Following palm oil, soyabean oil is the next in terms of popularity as vegetable oil. Price trends in the last decade show the correlation between the two vegetable oils.

Price correlation between vegetable oils (USD/ton)

Graph 2

Words from author:

I hope you enjoyed reading this article. If you have any queries about palm products, do visit our website at palm-chemicals.com or drop us a mail at contact@chemtradeasia.com.

A Global Market Outlook of Effluent Treatment Industry

Effluent is defined by the United States Environmental Protection Agency (EPA) as wastewater (treated or untreated) that flows out of a treatment plant, sewer, or industrial point source. Generally, effluent refers to wastes discharged into surface waters.

The use of large amount of water in a number of industries generate a large quantity of wastewater. Wastewater generated from different industries have different characteristics. The wastewater generated from food industries is generally biodegradable and less harmful. In contrast, those generated from a chemical and oil plant may be more toxic and non-biodegradable. Regardless of industries, the treatment of wastewater is necessary to minimise the pollution to environment. Consequently, every industry requires an effluent treatment plant. The technologies and chemicals used in treatment of wastewater may differ in different effluent treatment plant.  The types of chemicals used in the treatment of wastewater include coagulants, flocculants, disinfectants, and neutralizing agents. Coupled with strict government regulations, the global demand for effluent treatment plants has increased tremendously.

The equipment and chemicals used in treatment of wastewater forms the largest segment of global wastewater market. The market in North America is projected to dominate the effluent treatment plant market due to the number of projects involving shale gas production. In the shale gas production, water is heavily used for hydraulic fracturing and the wastewater generated has to subsequently be treated.

232323

Shale Gas Basins in The United States (Source: PortVision)

In many developing countries, the governments also aid in establishing common effluent treatment plants (CETPs) where companies in the same industry can treat their wastewater together. An example is the CETPs in Maharashtra, India. This clustering generates traded interdependencies and possibly, untraded interdependencies.

 

In China, the rapid demand for water recycling technologies are driving the growth of the market. The market is projected to reach $1.18 billion by 2020. Weather pattern is also a strong impetus for the growth of this market. In India, unpredictable rainfall patterns and contaminated groundwater have had an impact on the growth of wastewater recycle and effluent treatment plants. The market for treatment of wastewater in Mexico is growing at a rate of around 8% due to the rapid industrialization of the country.

1212121

Xi Lang Wastewater Treatment Plant (Source: AECOM)

The revenue for global wastewater market in 2014 was approximately $185 billion. Mr Karan Chechi, the research director of TechSci Research, predicted that the global wastewater market will grow at a compound annual growth rate (CAGR) of about 10% between 2015 to 2024. The strong awareness of water conservation, environmental protection, and strict government regulations will continue to catalyse the growth of wastewater market.

 

To know more about chemicals used in effluent treatment, visit Chemtradeasia.