March 2020 Surfactants Monthly - Abbreviated
This month we have an abbreviated column due to a lot of other things going on.
Let’s see.. tips and tricks for working from home? Nah.. Looking good on zoom calls? Nope.. How it’s really neighborly on our street now.. I think you’ve read all that already. I would, however, like you to consider joining our P2 Science CT Foodbank Fund Drive. Click the link and support folks who, through no fault of their own are out of work and out of money. I read that a third of renters are late paying April’s rent. It’s those people. You’re living paycheck to paycheck and then the government shuts down the economy, so we all don’t get infected. It’s never happened before. Many had their livelihoods taken away. Many were forced to work from home in their PJ’s. The latter should help the former.
Another link to consider: If you want to stay abreast of developments in brand new, renewable, cosmetics polymers, then join the P2 webcast Thursday April 9th at 1 PM Eastern.
And one more, if you’re up for it. The 10th ICIS World Surfactants Conference has been shifted back to September 16th – 18th – still in the same venue in Jersey City.
The News – In brief
Sentiment in Asia’s linear alkylbenzene (LAB) market took a turn for the worse as a result of upstream crude plunge early on Monday March 11. Buyers flocked to their suppliers asking if the latter could provide some relief for them in the wake of a plunge in crude values following Saudi surprise announcement of cut in prices and increase in oil production. However, sellers argued that current upstream movements would only be reflected in the following month.
Several suppliers were already sold out for April-loading cargoes, which did not reflect the lower cost of crude values. As such, they were not under inventory pressure. Following the crash, suppliers and buyers retreated to the sidelines to monitor the market. “This week, we stopped offering prices just to see how the market settles,” said a northeast Asian producer. The market collectively expects that April’s settlement prices for May loading cargoes would definitely be under pressure.
In India, because of a domestic plant’s maintenance, supply was considered short. Demand was stable-to-firm, and customers were still buying their regular volumes, with some asking for more material, according to several market sources in India. Discussions in southeast Asia and India were muted this week, as the market monitored crude’s situation. Buying and selling indications were also scarce as the near term outlook was still uncertain with sentiment turning bearish.
However, the tight supply situation could afford a little support to the bearish market.
US Q2 fatty alcohols contracts were assessed wider early April, but tight supply is expected to countervail throughout the quarter. Contracts for natural mid-cut alcohols among large volume buyers negotiated earlier in the quarter largely settled at a decrease amid the downward correction in feedstock palm kernel oil (PKO) costs and healthier inventory levels at the beginning of the year. Mid-cut contracts settled later in the quarter - including contracts for synthetic volumes - toward the higher end of the range, amid tightening supply in southeast Asia, Europe and the US as a result of the coronavirus, made worse by the March plunge in crude oil futures.
C1618 contracts were mixed amid similar fundamentals, with prices for mixed C1618 and C18 single-cut alcohols settling toward the lower end of the range and prices for C16 single-cut alcohols toward the higher end of the range amid more protracted supply tightness in the global market.
Contracts for premium material settled at a 3-5 cent/lb premium over non-premium volumes. Despite the settlements, supply is tight amid weaker production and sustained shipping and logistics constraints in south and southeast Asia and Europe stemming from coronavirus-related lockdowns and other disruptions. Many Asian oleochemical producers have reduced operating rates and/or declared force majeure as a result of the lockdowns and other coronavirus-related disruptions. Disruptions in Asia are causing a knock-on effect across Europe and the US, which are also facing their own constraints as a result of the virus. As a result, many Q2 shipments are delayed until later in the quarter or Q3, prompting increased demand for spot volumes at higher prices within and above the posted ranges. Ongoing supply tightness is expected to continue to put upward pressure on the market until these constraints ease and the virus subsides.
US Q2 mid-cut alcohols were assessed 3 cents/lb lower on the low end and 3 cents/lb higher on the high end at 63-78 cents/lb delivered (DEL) in the US Gulf. US Q2 C1618 alcohols were assessed 2 cents/lb lower on the low end and 3 cents/lb higher on the high end at 88 cents/lb DEL in the US Gulf.
Right at the end of March ICIS reported that Stepan completed the acquisition of Logos Technologies' NatSurFact business. Financial terms were not disclosed. NatSurFact is a rhamnolipid-based line of surfactants made from renewable sources. Rhamnolipids are biodegradable, have low toxicity and, in some cases, have antimicrobial properties, Stepan said. "NatSurFact developed a novel fermentation process for rhamnolipids and has achieved high yields at both the bench and pilot scale," said Quinn Stepan, CEO. Stepan plans to bring the surfactants to market in the upcoming years.
That’s it on the news front. Just the top picks. As you know the chemical industry is working like hell to make (and donate in many cases) sanitizer around the world.
One thing I guess I could comment on about the lockdown. If you’re looing for good online workouts, youtube’s got a couple of great ones with many similar exercises but totally different styles.
Check out Has Fit for the man and wife team of Coach Kozak and Claudia. They’re upbeat, constantly motivational and build up a sweat and moan about the pain – just like you.
For a different vibe, check out Heather Robertson She works out to anodyne synth-pop in front of a white background. She never sweats and the form is perfect. Probably not like you. In fact, I’ve done a bit of research and it’s hard to prove her real identity. Who knows, with some CGI, AI and a well drawn avatar, you may have “Heather Robertson” without all that messy human being business.
Human or not..?
And for our outro: A perfectly appropriate musical piece suggested by a long-time reader of the blog. Listen carefully to the opening spoken introduction…..