Palm oil has a wide range of applications, but is under scrutiny because its production is damaging to rainforests. Indonesia, the world's largest palm oil producer, has recently cracked down on the illegal export of palm oil and restricted the export of waste cooking oil and palm oil scrap, aiming to regulate the market and safeguard domestic supply and industry development. After Indonesia restricted the export of waste cooking oil and palm oil waste products, palm oil prices fell from a 30-month high of more than 5,150 ringgit per ton in December last year to less than 4,200 ringgit per ton in January this year, triggering concerns about the oversupply of crude palm oil in the market.
In addition, the EU's push four years ago to ban the use of palm oil from deforested land, a policy aimed at companies that consume large quantities of biofuels, and the provision of incentives for large consumers to buy used cooking oil in an effort to curb demand for palm oil, continues to affect EU purchasing demand for palm oil.
The United States was planning to introduce tax incentives to encourage the production of cleaner fuels for transportation (which was proposed to provide tax credits to companies producing low-carbon fuels, including palm oil waste), but the Trump administration has delayed the program and is considering excluding used cooking oil from the incentives, affecting the market prospects for palm oil in the biofuels sector, which could force U.S. refiners to look for alternatives, exacerbating the palm oil glut and depress prices.
To summarize, on the one hand, Indonesia's recent policies have directly led to palm oil overcapacity, and on the other hand, policy adjustments in some countries have led to more barriers to palm oil exports, prompting the demand side to look for new substitutes, which may lead to a continued low demand for palm oil in the market. It is well known that the production of palm oil and fatty alcohols are closely linked, the former is a key raw material for the manufacture of the latter, while fatty alcohols and surfactant products C12-C16 Alkyldimethylbenzylammonium Chloride (ADBAC), Benzalkonium Chloride (BKC), Fattyalcohols,ethoxylated (AEO), N, N-ethylene bis steara mide (EBS) and so on in the supply of raw materials, production and processing, product performance, as well as the market and application of a number of dimensions exist inextricably linked.
according to the above, the palm oil overcapacity, the contraction of the market demand, and other factors may trigger the palm oil ,According to the above, factors such as palm oil overcapacity and shrinking market demand may trigger palm oil prices to go down, and the price drop will reduce the cost of fatty alcohols from natural oils and fats, and the related downstream surfactant products C12-C16 Alkyldimethylbenzylammonium Chloride (ADBAC), Benzalkonium Chloride (BKC), Fattyalcohols, ethyl alcohols, etc. are inextricably linked. Fattyalcohols,ethoxylated (AEO), N, N-ethylene bis steara mide (EBS), etc. The cost will be improved. At the same time, the lower price of fatty alcohols from natural oils and fats will also be indirectly transmitted to the market of fatty alcohols from petrochemical sources, and the cost of downstream surfactant products such as Isotridecyl alcohol, ethoxylated will also be improved. It is worthwhile to keep our attention on this aspect of the message.