Overcapacity and volatility concerns dog SE Asian oleochemicals; more firms eye opportunities in specialities

摘要

Southeast Asia (SEA) has become a production hub for oleochemicals including glycerine, fatty acids and fatty alcohols. The region is also a major biodiesel player. However, crude devaluation and overcapacities have muted the oleochemicals sector in the recent past. Frequent price fluctuations of vegetable oils have also affected the oleochemicals market. Meanwhile, the government of Indonesia has imposed tax on crude palm oil (CPO) exports to fuel development in a value-added industry, resulting in capacity build-up.