What's up? Chemical Industry news!

The industrial chemicals and raw materials market is experiencing dynamic changes, driven by rising demand, price fluctuations and global investment. The vitamin sector, including ascorbate and vitamin E, is gaining ground due to growing health consciousness, while prices of some raw materials, such as N-Butanol, are rising due to limited supply, and N-Heptane is getting cheaper due to overproduction. In the investment sector, a key development is Sinopec's planned US$3.7 billion refinery in Sri Lanka, highlighting strategic changes in the region's energy sector. At the same time, developments in artificial intelligence are changing the landscape of chemical distribution, optimizing logistics processes and supply chain management.

Ascorbic Acid (Vitamin C)?

The ascorbic acid market continues to grow dynamically, driven by high demand in the food, pharmaceutical, and animal feed industries. It is expected that by 2030, the global ascorbic acid market will reach a value of $2.4 billion, growing at an annual rate of 4.6%. In the food industry, vitamin C is becoming more popular as a natural preservative and antioxidant, especially in Europe, where there is an increasing demand for clean-label products. Additionally, the pharmaceutical industry remains the primary consumer of ascorbic acid, and the rising health awareness post-COVID-19 continues to drive strong demand for immunity-boosting supplements. The market is dominated by the Asia-Pacific region, particularly China, which leads production, with growing demand for fortified food and animal feed.?

Choline Chloride 60%?

In industrial applications, the demand for choline chloride 60% is experiencing steady growth, particularly in the areas of feed production, chemical industries, and the manufacturing of additives for oils and lubricants. This compound is used as a modifier to enhance chemical properties, supporting manufacturing processes across various sectors. The increasing demand is driven by the need for optimization in industrial efficiency, cost-effectiveness, and sustainable development. Choline chloride is increasingly being incorporated into advanced feed formulations and chemical production processes.?

Vitamin E?

The industrial market for vitamin E is experiencing continued growth, driven by increased demand across sectors such as animal feed, food processing, and industrial manufacturing. Valued at approximately $2.99 billion, it is growing at an annual rate of 7.7%. It is widely used in food and feed applications as an antioxidant, as well as in the production of plastics, rubber, and cosmetics. The recent supply disruptions caused by the fire at a BASF production facility in 2024 temporarily affected vitamin E production, leading to price volatility and shortages. However, production is expected to stabilize in mid-2025, which will likely mitigate these issues.?

Beta-Alanine?

The beta-alanine market continues to grow, driven by its increasing use in sports supplements, functional foods, and beverages. Valued at approximately $96.3 million in 2024, it is projected to grow at a compound annual growth rate (CAGR) of 4.3% through 2034. This growth is primarily driven by rising consumer awareness of health and fitness, alongside a surge in the popularity of performance-enhancing supplements. In the industrial sector, beta-alanine is increasingly incorporated into food and beverage formulations, particularly in energy drinks and health supplements aimed at improving athletic performance. Additionally, the growing trend of active lifestyles and the rising demand for functional foods are expected to continue to fuel the market.?

Sri Lanka has signed a US$3.7 billion deal with China's Sinopec to build an oil refinery in Hambantota. The project is important for the energy independence of the country, which currently relies entirely on fuel imports. The Sri Lankan government stresses that the investment will accelerate the development of the Hambantota port, which has not yet reached full operation. The new infrastructure is expected to attract more investors, increase maritime traffic and strengthen the country's position as a logistics hub in the region.??

The refinery will not only meet local energy needs but will also reduce fuel costs and improve the country's energy security. The parties to the agreement will jointly decide on the allocation of production, although details of the refinery's capacity have not yet been disclosed. The project is part of Sri Lanka's wider cooperation with China, which has gained momentum following President Anura Kumara Dissanayake's visit to Beijing. The deal is part of China's geopolitical strategy in the Indian Ocean region, which is also important from an international security perspective.??

N-Heptane prices in the Asia-Pacific (APAC) region are falling in January 2025, mainly due to weak demand in key industries such as adhesives, paints and coatings. Although commodity prices like kerosene are stable, overproduction and weaker orders ahead of China's Lunar New Year celebrations have become a problem. During this period, many companies are halting production or reducing purchases of raw materials, affecting lower demand.? ?

As a result, demand for N-Heptan in China and South Korea has remained low, and large inventories in the adhesives and paint industries are making it difficult to align supply with demand. The upcoming holidays have further slowed the market, and many companies have reduced purchases, holding off on larger orders. In addition, economic problems in South Korea, such as a decline in industrial production and poor weather conditions, have also reduced demand. With excess inventories and low demand, N-Heptane prices could fall further in the coming weeks.?

At the end of January 2025, N-Butanol prices in Germany increased, mainly due to higher raw material costs and reduced production. Despite the availability of other oxo-alcohols, there were supply difficulties for N-Butanol and iso-butanol, which drove up prices. Raw material availability problems are expected to continue in the near term as production constraints continue and stocks are insufficient.??

The increase in N-Butanol prices is also due to rising raw material costs, resulting in higher final product prices. Although the availability of other chemicals, such as 2-EH, remains stable, companies are concerned about further increases in spending, which could affect the market in the coming weeks. Consequently, N-Butanol prices may remain under pressure and supply will continue to be limited.??

The outdoor chemical distribution market is set to grow at a C$156.7 million CAGR by 2029, driven by growing demand for efficient solutions in the industry. A report by analyst firm Technavio indicates that one of the main drivers of this growth is the growing interest in using artificial intelligence (AI) to optimise supply chain and inventory management in the chemical industry.??

AI technologies are gaining prominence as they help distribution companies improve operational efficiency, anticipate customer needs and automate processes. As a result, AI has the potential to redefine the market, changing the way chemicals are produced, stored and distributed, and helping to further develop the industry as a whole.??