Article: Fatty Acids Makers Deal with Thin Margins.(Brief Article)(Statistical Data Included)

PRODUCT PRICES IN the $2.85-billion North American fatty acids market are mired near historic lows, and demand volume is expected to slip 2%-3% by year-end, to 910 million m.t., says Don Ciancio, global v.p./process intermediates at Uniqema.

But major fatty acids suppliers, including Cognis and Uniqema, say that lower vegetable oil feedstock costs and increased demand for higher-value products are helping them cope through a difficult period. Demand has dropped for fatty acids such as lauric and stearic acid for traditional soaps, but demand for new personal care products using higher-value fatty acids has risen.

Specialty fatty acids including dimers, ...

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