Rapid Capacity Growth of Long Chain Fatty Alcohols
Year:2007 ISSUE:29
COLUMN:MARKET REPORT
Click:214    DateTime:Oct.16,2007
Rapid Capacity Growth of Long Chain Fatty Alcohols   

By Shi Yuying  

Long chain fatty alcohols here are referring to those alcohols with more than six carbon atoms per molecular. They are basic chemical raw materials for the synthesis of surfactants, detergents, plasticizers and various other fine chemicals and are extensively used in textile, household chemicals, papermaking, foodstuffs, pharmaceuticals and leather manufacturing sectors.

Low operating rate

The production capacity of long chain fatty alcohols in China was close to 200 000 t/a in 2006. The operating rate was however relatively low and the output was only around 100 thousand tons. The production of long chain fatty alcohols in China developed rapidly and there have been quite a lot of new constructions and expansions. The joint venture 100 000 t/a long chain fatty alcohols plant constructed by Sasol of South Africa in Lianyungang of Jiangsu province is scheduled to start up in 2007. Liaoyang Huaxing Chemical Co., Ltd. will put its new 80 000 t/a long chain fatty alcohols unit on stream in 2008 and the company will acquire a total capacity of 140 000 t/a and become the biggest long chain fatty alcohols producer in China. The 100 000 t/a long chain fatty alcohols unit in Deyuan (Jiangsu) High-Tech Co., Ltd. will start production in 2008. Shangqiu Longyu Chemical Co., Ltd. plans to expand its capacity of long chain fatty alcohols by 30 000 t/a at the end of 2007. Wuhan Sifanghang Chemical Co., Ltd., Wuxi Dongtai Fine Chemical Industry Company Ltd. and Zhejiang Phoenix Chemical Co., Ltd. also intend to expand the capacity of their long chain fatty alcohols units. Besides, Kerry Oils & Grains (China) Co., Ltd. also plans to launch a 45 000 t/a long chain fatty alcohols project. Jiangsu YongLin Chemical Oil Co., Ltd. plans to make an investment of RMB60 million and construct a 20 000 t/a long chain fatty alcohols project. Hutubi County of Xinjiang region plans to make an investment of RMB80 million and construct a 30 000 t/a long chain fatty alcohols project with cottonseed oil as raw material. If these projects can be completed on schedule, the total capacity of long chain fatty alcohols in China will be more than 700 000 t/a in 2008.

Increasing demand

Demand for Long Chain Fatty Alcohols in China
(thousand tons)
Category    2000    2006
C12-14 alcohols    56    172-231
C16-18 alcohols    30    82-118
Other alcohols    135-160    275-356
Total    221-246    529-705
Source: CNCIC


The demand for long chain fatty alcohols is determined by the demand from downstream products, especially surfactants. The demand for surfactants worldwide is growing stably in recent years and the average annual growth was around 3%. In the Asia-Pacific region, in particular, the average annual growth of demand was 4.7% for industrial surfactants, 3.6% for household surfactants and 7.7% for skin-care surfactants. The average annual growth of demand for long chain fatty alcohols in the world will be 3.1% in the next few years.
   China is one of the major consumers of long chain fatty alcohols in the world. Long chain fatty alcohols have an extensive consumption market in plastic products, detergents, surfactants and other fine chemicals. With the improvement of economy, there will be a greater need for long chain fatty alcohol product series and their derivatives, and a further growth of demand for long chain fatty alcohols will surely be stimulated.
   Compared with developed countries such as the United States, the production of long chain fatty alcohols in China has outdated technology, small scale, high cost, low quality grade and weak competitiveness. China's long chain fatty alcohol manufacturing sector should therefore expand production scale, strengthen research on catalyst localization, reduce production cost and enhance market competitiveness.