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    Fatty Alcohol

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    S Tunkla Echaroj
    Long chain aliphatic alcohols called fatty alcohols are produced through two main methods - oleochemical processes using plant or animal oils and fats, and petrochemical processes using petroleum feedstocks. Fatty alcohols have a range of uses but the market has recently experienced oversupply and falling prices due to new production capacity and weak demand. Producers have tried to cut output and raise prices to address this issue and high raw material costs, but market stabilization remains uncertain given demand growth projections of only 3% annually.

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    Fatty Alcohol

    Uploaded by

    S Tunkla Echaroj
    507 views3 pages
    Long chain aliphatic alcohols called fatty alcohols are produced through two main methods - oleochemical processes using plant or animal oils and fats, and petrochemical processes using petroleum feedstocks. Fatty alcohols have a range of uses but the market has recently experienced oversupply and falling prices due to new production capacity and weak demand. Producers have tried to cut output and raise prices to address this issue and high raw material costs, but market stabilization remains uncertain given demand growth projections of only 3% annually.

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    Long chain aliphatic alcohols called fatty alcohols are produced through two main methods - oleochemical processes using plant or animal oils and fats, and petrochemical processes using petroleum feedstocks. Fatty alcohols have a range of uses but the market has recently experienced oversupply and falling prices due to new production capacity and weak demand. Producers have tried to cut output and raise prices to address this issue and high raw material costs, but market stabilization remains uncertain given demand growth projections of only 3% annually.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    507 views3 pages

    Fatty Alcohol

    Uploaded by

    S Tunkla Echaroj
    Long chain aliphatic alcohols called fatty alcohols are produced through two main methods - oleochemical processes using plant or animal oils and fats, and petrochemical processes using petroleum feedstocks. Fatty alcohols have a range of uses but the market has recently experienced oversupply and falling prices due to new production capacity and weak demand. Producers have tried to cut output and raise prices to address this issue and high raw material costs, but market stabilization remains uncertain given demand growth projections of only 3% annually.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
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    Fatty Alcohol

    Long chain aliphatic alcohols are manufactured by a number of processes, but these can be divided into two general categories: Oleochemical - the feedstocks for the most common oleochemical-based processes include plant or animal based oils or fats: coconut, palm kernel oil and tallow fat, or other triglycerides. And: Petrochemical - the most commonly used processes use different petroleum-based feedstocks - olefins (alpha and internal), ethylene, and propylene oligomers. Some commercially available products are blends of two or more specific chain length alcohols to produce mixtures. Different manufacturing methods can lead to different compositional profiles. There are two major commercial processes for converting oleochemicals to alcohols: Methyl ester hydrogenation coconut and palm kernel oils and tallow fat are the major feedstocks for this route to alcohols. The triglycerides that compose the major raw materials are first subject to transesterification with excess methanol using an alkaline catalyst. The resulting fatty acid methyl esters are subject to distillation and then may be converted to alcohols by hydrogenation. And: Fatty acid hydrogenation this process involves the hydrolysis of fats and oils to the corresponding fatty acids followed by the direct catalytic hydrogenation to alcohols. Alcohols manufactured by oleochemical processes have a linear structure and an evennumbered carbon chain usually in the range C 6 to C22. Some members of this category may contain unsaturated primary alcohols. The commercial processes generally used for converting petrochemical feedstocks to alcohols are: From ethylene via the Ziegler process like the alcohols manufactured by oleochemical processes those derived from ethylene via Ziegler chemistry have a linear structure and an even-numbered carbon chain usually in the range C 6 to C22. And: From olefins via OXO and modified-OXO synthesis - the olefin precursors may be linear alpha-olefins (1-alkenes), or linear internal olefins, or mixtures of the two and are reacted with mixture of carbon monoxide and hydrogen. The alcohols produced have one more carbon than the olefin feed and consist of linear alcohols and their corresponding mono C 2-alkyl isomers (predominantly methyl) and may fall in the range C7 C17, contain even and odd numbered carbon chains. The proportion of linear alcohols ranges from approximately 90 to 50% depending on the feed selection and type of OXO process. http://www.aciscience.org/Oleochemical/FattyAlcohol.aspx
    Fatty Alcohols Market Reels From Oversupply, Weak Demand 28 October 2002 00:00 [Source: ICB Americas] The fatty alcohols market is feeling the effects of sliding prices because of overcapacity and weak demand in the wake of a soft economy. Global prices for fatty alcohols in 2002 have plunged by 10 to 15 percent below 2001 price levels. Meanwhile, rising feedstock costs on the oleochemicals side are pressuring natural fatty alcohols producers to increase their prices in an effort to correct a significant price slide in fatty alcohols

    during the past 12 to 18 months. On the synthetic side, producers had already announced closures of alcohol facilities to help ease up the market. Procter & Gamble (P&G) Chemicals is among the producers who upped their fatty alcohols pricing in the fourth quarter. In an effort to stem the tide of ebbing margins, the company raised prices for their fatty alcohols in North America by 4 cents per pound. "The overcapacity situat ion and raw material costs have led to weak pricing for fatty alcohol," says Norman Ellard, global sales, P&G Chemicals. Cognis Corp. also announced a global price increase for its fatty al cohols products, effective October 1. The company raised pricing in North America by 3 cents to 5 cents per pound, citing rising costs in raw materials, insurance, security, energy, fuel and higher transportation costs. "Alcohol prices, after peaking in 20 00 in concert with world economic activity, declined as overall manufacturing growth slowed and buyers anticipated new capacity additions," says a Cognis official. "Historically, low raw material costs have also encouraged more natural alcohol production worldwide, which also pressured prices." No price increases were noted on the synthetic side of the market. However, the fatty alcohols industry is anticipating cuts of around 160,000 tons of synthetic alcohol capacity this quarter by BP Chemicals and Shell Chemicals Ltd. BP's plan to exit the linear alcohols industry this year has forced the company to permanently shut down its lone 60,000 ton-per-year alcohol production at Pasadena, Tex., in the fourth quarter. BP says the shutdown will enable the company to focus the plant's operation on linear alpha olefin production. Shell recently idled 100,000 tons per year of Neodol alcohol capacity at its Geismar, La., facility for an indefinite time. According to Shell, the reduction in capacity will not impact the company's ability to supply its customers' needs. Industry observers believe that unless further ca pacity cuts are made, getting to historical price levels in the alcohols market will be difficult, especially given recent global capacity expansions and continued weak demand. Recent capacity expansions in both synthetic and natural alcohols have put the market in oversupply by as much as 300,000 tons, says P&G's Mr. Ellard. A new 150,000 tons-per-year synthetic alcohol capacity from Shell came on stream in midyear. At the same time, Kao Corp. of Japan started its

    newly expanded 165,000 tons-per-year natural fatty alcohols plant in Malaysia. The annual production capacity of the site has been upgraded by 50,000 tons. Meanwhile, Sasol recently commissioned a new 120,000 ton-per-year coal-based oxo alcohols plant in South Africa. The company plans to introduce the new product into the market in November. In Asia, an expansion of around 200,000 tons of lauric oil-based fatty alcohols capacity is still under consideration for the next two to three years, despite current market conditions. If pushed through, global fatty alcohols capacity is expected to be around 2.6 million tons by 2005, with capacity utilization projected at around 75 percent, says one observer. Excluding the newly started capacities, global fatty alcohols capacity for 2002 is estimated at around 2.1 million tons. Europe is said to hold 36 percent, followed by North America with 33 percent and Asia with 31 percent. Current global capacity utilization is estimated at around less than 80 percent, says one observer. In 2000, global utilization was in the mid-90 percent range, while last year it fell to the low 80-percent range. However, fatty alcohols demand growth is still projected at an average of 3 percent per year or less. "The alcohol market is anticipated to average slightly less than worldwide gross domestic product over the next 10 years," says Mike Clark, global sales and marketing manager , alcohols, Sasol Olefins and Surfactants. Producers expect fatty alcohols pricing to stabilize or firm slightly in 2003 as potential raw material price increases for both synthetic and natural fatty alcohols loom. Lauric oils are projected to tighten next year, as global vegetable oils supply is forecasted to decline to a historically low level. Meanwhile, troubles brewing in the Middle East are forcing producers to monitor crude oil prices, which could further pressure fatty alcohols prices. Prices for mid-cut fatty alcohols are currently placed at around $900 to $1200 per ton.

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