Managing Feedstock Volatility in the Surfactant Supply Chain: Strategies for Oleochemicals & Petrochemical Feedstock
(12th Asia Surfactants Personal & Home Care Markets–Shanghai, China)

Aditya Vikram Kapoor,
Senior Analyst,
Beroe Inc.

Abstract

Petroleum-based surfactants currently dominate the surfactant production at a global scale. However, there is now a greater focus on manufacturing surfactants from renewable feedstock sources driven by factors like: evolving consumer preferences for milder & biodegradable products, changing regulatory environments, impetus to reduce dependency on the highly volatile crude oil market, etc. In this gradual state of transition, surfactant manufacturers have product portfolios based on both, petrochemical & oleochemical feedstock, and are subjected to volatilities arising from these diverse markets.

As part of this presentation, I seek to provide: a high-level understanding of major feedstock markets influencing the environment for surfactant producers, causes for underlying volatilities in these feedstock markets, and a perspective on future trends. This will provide a background to discuss the strategies that procurement divisions in the surfactant space could employ, to better manage their feedstock costs, and in turn improve the bottom-line of their surfactants division.