OKCHEM news (December 7, 2017) l Amino acid price is looking up; Natural gas price increase with demand; Asia Major TiO2 enterprises are facing limited production; Biggest epichlorohydrin factory outbreak of fire
Amino acid price is looking up
Amino acids are organic compounds containing amine and carboxyl functional groups. They are the basic components of animal protein. The most common source of amino acids is intensive processing of corn.
Small and medium manufacturers is facing a more severe environmental regulations, which add up the processing costs, in the short future, the price of amino acids are looking up.
Natural gas price increase with demand
Recently price of natual gas is rising with the increased demand and probably will keep at a high level in the following months. Commercial and residential demand is switching from coal to natural gas to comply to environmental regulations. In addition, infrastructure of natural gas is not well developed to fit the increasing demand. These are two primary contributes to the high prices.
Major TiO2 enterprises are facing limited production
In December, some major TiO2 enterprises in Panzhihua, Tonlin and Zhenjiang are facing limited production because of environmental regulation. Higher TiO2 prices from these major enterprises reflect the limited inventory and increase of raw material prices. However many smaller enterprises didn’t follow this price rise. If the production limit continues in short future, the price will probably increase.
Asia Biggest epichlorohydrin factory outbreak of fire
On December 4th, the biggest epichlorohydrin factory in Asia, Haili Chemicals, outbreak of fire. Epichlorohydrin is one of the major raw material in epoxy resin manufacturing. The outbreak may cause the increase of price in the downstream.