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Newsletter March 2024

News Summary

Sorbitol

GAEL Emerges as India’s Largest Sorbitol Manufacturer

Hydrogen Peroxide

Solvay and Huatai Expand Hydrogen Peroxide Capacity in China

Guar Gum

UK’s FSA Proposes Ethylene Oxide Limit in Food Additives for Enhanced Safety

Glycerine

SEA Urges Import Restrictions on Finished Products to Safeguard Indian Oleochemical Industry

White Mineral Oil

CLG Sets Record: World’s Largest Hydro-processing White Oil Unit in China

Similar Insights

Hydrogen Peroxide

Solvay and Huatai Expand Hydrogen Peroxide Capacity in China

Solvay and Huatai have announced an expansion of their hydrogen peroxide capacity at the Shandong Huatai Interox Chemical site in China. The expansion is in line with China’s carbon neutrality goals and aims to meet the growing demand from the photovoltaic industry. The strategic investment is expected to produce 48 kilotons of photovoltaic-grade hydrogen peroxide annually by 2025. Hydrogen peroxide is a critical component in cleaning photovoltaic cells during solar panel production, ensuring optimal conversion efficiency. This collaboration demonstrates Solvay’s commitment to sustainability and strengthens its presence in the Chinese market. The joint venture, which began in 2010, emphasizes innovation and sustainability goals and highlights the strategic importance of this expansion for both companies and the renewable energy sector.

Image Credit: EOG Asia



Telangana Drug Control Administration Warns Retailers on Hydrogen Peroxide Sales Violations

The Drug Control Administration (DCA) of Telangana, India, has issued a warning to pharmaceutical retailers against selling unauthorized hydrogen peroxide solution (HPS) to patients. The DCA has highlighted that HPS used for laboratory purposes is not regulated, whereas the therapeutic variant is a scheduled drug that the department regulates. Any retailer found selling the unregulated product will face departmental action. As per the Drugs and Cosmetics Act 1940, hydrogen peroxide comes under Indian Pharmacopoeia standards and must adhere to them. In recent times, the DCA has taken action against spurious drugs and illegal medicine sales, which has garnered international recognition. During the raids, counterfeit drugs resembling major Indian and multinational companies have been uncovered. The DCA’s director-general has reaffirmed strict action against violators of the Drugs and Cosmetics Act.

Sorbitol

GAEL Emerges as India’s Largest Sorbitol Manufacturer

Gujarat Ambuja Exports Limited (GAEL) recently announced the successful commissioning of a 100-ton per day (TPD) sorbitol unit at its existing facility in Hubli, Karnataka State, India. GAEL specializes in manufacturing corn starch derivatives, soya derivatives, feed ingredients, cotton yarn, and edible oils. With this new addition, GAEL now becomes the largest sorbitol manufacturer in India, boasting a cumulative capacity of 500 TPD across four different locations. Following the announcement, the company has experienced positive growth in its share prices. This development will help fulfill the domestic and international demand for sorbitol.

Caustic Soda

INEOS ES and Tamilnadu Petroproducts Ready to Elevate Caustic Soda Production in Chennai

INEOS Electrochemical Solutions (IES) has entered a technology contract with Tamilnadu Petroproducts (TPL) to enhance caustic soda production at TPL’s Chennai facility. The collaboration includes the establishment of a new cell room, aiming to increase caustic soda production to 250 metric tonnes per day. Terry Healy, Business Manager at IES, emphasized their commitment to pioneering electrolyser technologies that set new industry standards for high-volume production with low energy consumption and the highest safety standards. This strategic partnership underscores efforts to boost Chennai’s caustic soda output, highlighting advancements in sustainable and efficient production processes in the chemical industry.


Anwil S.A. Restarts Caustic Soda and PVC Production in Poland

Anwil S.A, a major player in the Polish petrochemical industry, has successfully resumed production of caustic soda and polyvinyl chloride (PVC) in Wloclawek, Poland, following a planned maintenance break. The temporary reduction in production, announced by Anwil in May of the previous year, affected PVC with a capacity of 340 thousand tons, caustic soda with a capacity of 218 thousand tons, and chlorine with a capacity of 195 thousand tons annually. Operating as part of the PKN Orlen petrochemical concern, Anwil strategically executed the maintenance period to conduct necessary repairs, upgrades, and inspections, ensuring optimal functionality of its production units. By restarting the production of Caustic Soda as well as PVC, Anwil will be able to fulfill the domestic demand for these chemicals in the country.


INEOS Inovyn Launches Ultra Low Carbon Chlor-Alkali products

INEOS Inovyn, which is Europe’s leading producer of Chlor-Alkali, has made significant advancements in its sustainability commitment. Recently, the company has introduced a groundbreaking Ultra Low Carbon (ULC) range of Chlor-Alkali products. This innovation has allowed a remarkable up to 70% reduction in the carbon footprint of caustic soda, caustic potash, and chlorine. The ULC range uses renewable energy sources, such as hydroelectric power and wind turbines, at its manufacturing sites in Rafnes, Norway, and Antwerp, Belgium, which are certified under the ISCC PLUS scheme. This range empowers customers to significantly reduce scope 3 emissions and create sustainable downstream products. INEOS Inovyn’s standard Chlor-Alkali portfolio already has 30% lower Green House Gas emissions than the European industry average, which further supports customers in achieving their ambitious GHG reduction targets.

Image Credit: INEOS Group

Guar Gum

UK’s FSA Proposes Ethylene Oxide Limit in Food Additives for Enhanced Safety

The Food Standards Agency (FSA) in the UK is proposing to limit the amount of ethylene oxide in food additives, following the EU’s example to ensure consistent standards and enhance food safety. Ethylene oxide is not approved for use in food and has been linked to incidents of contamination in commodities across the UK and Europe. The proposed limit is 0.1 mg/kg, which will affect eight food additives that currently have a limit of 0.2 mg/kg. Investigations suggest that manufacturing changes have caused unintentional contamination. Some examples include elevated levels of ethylene oxide in locust bean, guar, and xanthan gums. The proposal is open for public comments until March 25, and ministerial decisions will be made after that.

White Mineral Oil

CLG Sets Record: World’s Largest Hydro-processing White Oil Unit in China

Chevron Lummus Global (CLG), a joint venture between Chevron U.S.A. Inc. and Lummus Technology, has successfully commissioned the world’s largest hydroprocessing white oil unit for Hongrun Petrochemical (Weifang) Co., Ltd. The plant is located in Weifang, Shandong Province, China and consists of two units. The first unit has a nameplate capacity of 500,000 metric tons per annum (MTPA) and produces API Group III lubricating base oil. It can also produce industrial-grade white oil. The second unit, which has a nameplate capacity of 200,000 metric tons per annum, produces food-grade white oil. The plant uses CLG’s ISODEWAXING and ISOFINISHING technologies, which enable refiners to optimize product yields while ensuring superior product quality. The Weifang location allows the company to meet both domestic and international demand for white oil.

Soda Ash

Solvay’s Green River Facility Marks Successful Coal Phase-Out

Belgium’s Solvay has announced the successful completion of its “coal phase-out initiative” at the Green River facility in Wyoming, USA. The plant produces soda ash and sodium bicarbonate from trona, which is the primary source of sodium carbonate in the USA. This move is aligned with Solvay’s commitment to the energy transition and reducing its carbon footprint. Shifting from coal to natural gas improves the plant’s long-term sustainability. Despite a 25% increase in production, Solvay aims to reduce Green River’s emissions by 20% compared to 2021 by 2025. The company plans to expand the soda ash capacity by 600 kt, which is set to begin production next year. Along with a reduction in carbon footprint, the capacity expansion plan will help Solay cater to the USA’s domestic soda ash demand.

Image Credit: Solvay

Glycerine

SEA Urges Import Restrictions on Finished Products to Safeguard Indian Oleochemical Industry

The Solvent Extractors’ Association of India (SEA) has expressed concern over the large scale import of finished oleochemical products from South-East Asian countries, such as stearic acid and refined glycerine, at a 5% duty, and oleic acid at nil duty. The association highlights that India’s oleochemical sector has undergone significant investments and capacity expansions in the past decade and is now at risk due to the influx of subsidized or nil-duty finished products from Malaysia, Indonesia, and Thailand. To address this issue, the SEA suggests imposing an additional 25% duty on imported finished products while promoting duty-free raw material imports for domestic oleochemical manufacturers. Recently, the European Union has also safeguarded its oleochemical industries by putting antidumping duty on Indonesian products.

Epichlorohydrin (ECH)

DCM Shriram plans to invest Rs 1000 crore in an epoxy manufacturing plant

DCM Shriram Ltd has announced an entry into the Advanced Materials sector, revealing plans to invest Rs 1000 crore in a greenfield epoxy manufacturing plant. The company’s board has granted in-principal approval for this venture. The company’s Epichlorohydrin (ECH) plant in Jhagadia, Gujarat set to be operational in Q1 of 2024-25. Over 80% of ECH produced globally is used in the manufacture of Epoxy. DCM Shriram sees strategic synergy in leveraging existing raw materials like ECH and caustic for epoxy and value-added products. The Advanced Materials portfolio, encompassing liquid epoxy resins, hardeners, and more, targets diverse sectors like wind-blades, EVs, aeronautics, electronics, and fire-proofing, aligning with India’s emerging role in global consumption.

Titanium Dioxide

Brenntag Extends Distribution Agreement with Kronos for TiO2 in EMEA

Brenntag, a global chemicals and ingredients distributor, has extended its exclusive distribution agreement with Kronos for titanium dioxide pigments (TiO2) in the EMEA region. The expanded agreement includes Kronos products for Brenntag Specialties’ Life Science segments, encompassing pharmaceuticals, cosmetics, and personal care applications. This solidifies Brenntag’s role as a key TiO2 supplier in the region for these industries. Kronos, known for high-quality TiO2pigments and technical expertise, boasts an annual production capacity of approximately 550,000 metric tons across six manufacturing sites. Brenntag Specialties, with a strong presence in the EMEA life science industry, is well-positioned to distribute Kronos’ product range.

Image Credit: Seeking Alpha



EU’s Anti-Dumping Measures on Chinese Titanium Dioxide will Impact Market Condition: Stanislav Kondrasho

The European Union is considering tighter anti-dumping measures against Chinese made titanium dioxide (TiO2) due to rising demand and possible price hikes. According to Stanislav Kondrashov of Telf AG, these measures could affect goods delivered in February or March of 2024. In anticipation of these measures, Chinese TiO2 producers plan to increase their prices by $100 per ton starting from January 1, 2024. Despite TiO2 prices remaining stable, the EU’s investigation has led to increased orders from Europe, indicating a growing demand for TiO2. Kondrashov warns that there may be retroactive duties on already imported shipments if restrictions are imposed. Market participants are concerned about materials in transit and emphasize the need for close monitoring in light of potential shifts in trade policies.

Indian Exports Price Volume Trend

The current trends in price and volume of Indian exports for our top products.









Experts Insights

Sorbitol

It is expected that sorbitol prices in India will remain stable throughout March, 2024 due to a steady supply of upstream raw material (corn).


Soda Ash

The soda ash prices in India are expected to increase by 5-10% due to the closure notice issued by GCPB (Gujarat Pollution Control Board) to RSPL’s (Nirma) Dwarka soda ash manufacturing plant. This is because the plant has violated pollution rules as per the sources. The event has contributed to the shortage of soda ash in the Indian market.


Nonyl Phenol & Ethoxylates

The prices of Nonyl Phenol Ethoxylated derivatives in India are likely to rise due to reduced operational capacity of SI Group’s NP derivative manufacturing plant, as it is undergoing maintenance work. The increase in prices of ethylene oxide by 1 INR/kg has also contributed to the hike in nonyl phenol derivative prices in the Indian market. Additionally, the prices of other ethoxylated surfactant products are also expected to rise.

Elchemy Highlights

  • Our team enthusiastically engaged in Gulfood 2024, a prestigious event held in Dubai from February 19th to 23rd, with the aim of delving into the latest industry trends and cultivating valuable connections. The reception we received was exceptional, signifying the dawn of a new era in the world of food. Gulfood 2024 marked a historic milestone as the largest edition yet, uniting over 5,500 prominent food and beverage companies from over 190 countries, and featuring an impressive array of 150,000+ new products.


  • Elchemy has recently added four new chemicals to its portfolio, namely lactic casein, sodium lignosulphonate, sodium naphthalene formaldehyde, and chlorhexidine gluconate. Lactic casein and sodium lignosulphonate find extensive use in the food industry for their multifaceted properties. Sodium naphthalene formaldehyde is popular for its superplasticizer properties and extensively used in the construction industry. Chlorhexidine gluconate is known for its disinfectant properties, making it useful in various applications.
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Upcoming Exhibitions

The Elchemy Team is attending three exhibitions in China in March,2024.


  1. 1. China International Agrochemical & Crop Protection Exhibition (CAC 2024) on March 13
  2. 2. Personal Care and Homecare Ingredients (CPHi 2024) from March 20 to March 22
  3. 3. Food Ingredients China (FIC 2024) from March 20 to March 23


Meet our team at the upcoming events. We’re excited to connect and network with fellow professionals in the vibrant chemical industry!

Book a meeting with us here

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