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Newsletter April 2024
News Summary
Liquid Glucose
GAEL Inaugurates New Liquid Glucose Plant
Sorbitol
In India Pharmaceutical Raw Material Traders Under Scrutiny Amid Quality Concerns
Hydrogen Peroxide
Solvay Puts Electronics-grade Hydrogen Peroxide Arizona Plant on Hold
Methylene Chloride
Petition to Ban Methylene Chloride in Decaf Coffee in the USA
Caustic Soda
DCM's ECH Venture Leads to Increase in Caustic Soda Production at Bharuch Plant
Similar Insights
Liquid Glucose
Gujarat Ambuja Exports Limited, aka GAEL, recently inaugurated a new 120 TPD liquid glucose plant in Malda, West Bengal. This boosts their liquid glucose capacity to 900 TPD across five locations. GAEL caters to global industries like food, pharmaceuticals, and animal feed. The company is also advancing a starch unit in Uttarakhand, nearing 95% completion, and operates a sorbitol production facility in Karnataka. These moves have solidified GAEL's position in the agro-processing sector and met the demands of various markets.
Image Credit: Manufacturing Today India
Sorbitol
The ongoing investigation in Indore, India sparked by a government alert on cough medicine quality, began with pharmaceutical companies and has now implicated raw material traders. Central Drug Standard Control Organization (CDSO) officials probed 20 pharma firms in December-January, leading to scrutiny of 10 raw material dealers. Suspicions arose after reports of substandard cough syrup causing deaths in African countries. Glycerine and sorbitol, common ingredients, were allegedly misrepresented. The CDSO advisory emphasized adherence to stringent pharmacopoeia standards for raw materials. Traders stand accused of supplying industrial-grade materials as pharmaceutical-grade, potentially endangering consumers. Rising raw material costs during the pandemic exacerbated this trend, prompting manipulation for profit. The investigation highlights lapses in quality control and regulatory oversight.
Image Credit: Indian News Weekly
Hydrogen Peroxide
TSMC and Intel's slowdown in US fabrication construction has caused ripple effects in the semiconductor supply chain, leading to delays for material suppliers like Topco Scientific and Chang Chun Group. Solvay, a key hydrogen peroxide supplier for semiconductors, postponed its electronics-grade hydrogen peroxide Arizona plant's construction due to cost concerns. Chang Chun Group also scaled back its Arizona plant construction due to cost overruns. Regulatory hurdles in the US hinder fabrication and construction. Solvay's Arizona plant delay is attributed to market dynamics and federal subsidies. Streamlining regulatory processes and investing in alternative materials are suggested to enhance the US semiconductor industry's competitiveness.
Image Credit: ASM&D
The EPA issued a final rule to significantly reduce ethylene oxide (EtO) emissions from commercial sterilization facilities, aiming to lower cancer risks for nearby communities. This rule, applying to nearly 90 sterilizers, mandates stricter emission standards and continuous monitoring. It addresses health concerns, particularly for children, linked to EtO exposure. Despite industry concerns, the rule aims to balance public health protection with the need for sterilized medical devices. President Biden's initiative and environmental justice goals support this regulation. Additionally, the FDA promotes alternatives like vaporized hydrogen peroxide for sterilization. Overall, the rule aims to protect public health while ensuring a reliable supply of sterilized medical devices.
Methylene Chloride
The U.S. FDA is evaluating petitions to ban methylene chloride from decaf coffee amid concerns over cancer risks. Environmental Defense Fund and Clean Label Project advocate for its removal, citing evidence linking it to cancer. However, the National Coffee Association opposes, asserting the safety of the European Method, predominant in decaf production. They argue for its health benefits and substantial evidence supporting its safety. Approximately 10% of American adults consume decaf daily, with the majority produced using the European Method. Regulatory bodies like the FDA and EPA are under pressure to reevaluate methylene chloride's safety, despite existing thresholds considered safe. The outcome may impact millions of decaf consumers and the coffee industry.
Image Credit: Food Nevigator
Caustic Soda Flakes
DCM Shriram is venturing into advanced materials with a new epoxy resins plant, investing Rs10bn ($120.6m) over a few years. The plant's details are undisclosed. Chairman Ajay Shriram cited the company's existing ECH and caustic soda portfolio as a strategic advantage. Epoxy resins find applications in various industries like wind-blades, EVs, and electronics. The 51,000 ton/year ECH plant in Gujarat will begin operations between April and June 2024, with over 80% of ECH used in epoxy production. The expanded caustic soda plant in Bharuch, Gujarat, will operate from March, aiming for full capacity in two years, with a 60% increase in capacity.
Image Credit: DCM Sriram Ltd
Guar Gum
The UK FSA initiated a public consultation on revisions to Regulation 2019/1793, impacting high-risk non-animal origin food and feed imports. It delineates temporary controls and conditions for entry into Great Britain from specified countries. Annex I involves increased official controls at Border Control Posts (BCPs), focusing on short-term impacts, while Annex II outlines static controls subject to biannual review. Changes include removing groundnuts from Brazil due to reduced risk, adjusting checks for Indian commodities like Guar Gum and Sesamum seeds, and increasing controls for Chinese tea and Indian Sesamum seeds. Additionally, 15 new commodities face heightened monitoring for potential risks. These revisions aim to reduce public health hazards, with feedback accepted until April 25, 2024.
Chlorinated Paraffin
An Indian study conducted by Environmental NGO Toxics Link titled 'Is Plastic Recycling Safe?' reveals alarming levels of hazardous chemical contamination in recycled plastic products like toys and kitchenware. Detected chemicals include phthalates, chlorinated paraffins, heavy metals, bisphenol A, and nonylphenol. The findings highlight potential long-term health risks, including reproductive and respiratory issues. These revelations may lead to increased regulatory scrutiny and public awareness regarding the safety of recycled plastic products, potentially affecting the chlorinated paraffin market.
Image Credit: Lab Manager
Soda Ash
Eritrea's salt sector, leveraging its coastal areas and Red Sea salinity, shows remarkable potential. The Massawa salt factory aims to boost production from 20,000 to 100,000 tons in five years. Its iodized salt boasts 96.5% sodium chloride content, ensuring high quality. Plans to expand the Halibay site foresee one million tons production, valued at a billion dollars. The Menkaekae site near Assab could yield up to 10 million tons. Advanced refineries will produce value-added items like gypsum, Clorox, caustic soda, soda ash, and chlorine. Efforts to grow the economy include a Free Trade Zone Authority in Massawa. Eritrea's rich salt resources promise lucrative opportunities for global trade and industrial applications.
Image Credit: Getty Images
Menthol
In India, the Directorate General of Foreign Trade (DGFT) has suspended the import of menthol covered under specific ITC(HS) codes with immediate effect. This suspension applies to both Standard Input Output Norms (SION) and Adhoc Norms, pending a review of these norms. As a result, no Advance Authorization or Duty-Free Import Authorization (DFIA) will be issued for menthol under these codes until the review is completed. This suspension impacts industries reliant on importing menthol for various purposes, including export production.
Image Credit: Taxscan
Titanium Dioxide
The Eurasian Economic Commission (EEC) has extended duty-free imports of certain raw materials for Kazakhstan's industrial sector, including goods vital for the country's electrical industry, following Kazakhstan's proposal led by Deputy Prime Minister Serik Zhumangarin. Among these is titanium dioxide, essential for titanium production, imported by Ust-Kamenogorsk Titanium-Magnesium Plant (UKTMK), Kazakhstan's leading titanium producer. UKTMK, a major exporter, relies on titanium dioxide imports, benefiting from the extended zero-duty period. Additionally, the EEC Council has implemented a zero-duty rate for importing titanium scrap, further supporting local manufacturers like UKTMK, whose partnerships include Boeing, Airbus, and General Electric. This move is expected to enhance production capacity and reduce costs for titanium finished products.
Image Credit: USA Today
On March 4, 2024, the FDA published a webpage addressing the use of titanium dioxide (TiO2) as a color additive in foods. The page referenced a petition to revoke TiO2's listing in foods, signaling a stronger FDA stance on its safety. TiO2, permitted at 1% by weight in non-standardized foods, is also used in food contact materials. While the EFSA expressed genotoxicity concerns in 2021, the FDA cited international bodies affirming TiO2's safety. It clarified that EFSA tests used non-representative materials. The FDA found no genotoxicity or cancer risks in its assessment. The Codex Alimentarius Commission will review EFSA and JECFA findings in April. Although TiO2 faced potential prohibition in California in 2023, it was excluded from the final list under the California Food Safety Act.
Indian Exports Price Volume Trend
The current trends in price and volume of Indian exports for our top products.
Experts Insights
The prices of Indian nonyl phenol ethoxylates, SLES, and other ethoxylated surfactants are expected to increase after April 15 due to the temporary shutdown of the ethylene oxide (EO) plant of a prominent EO manufacturer in India.
The prices of Chinese SLES are on the rise due to the high costs of upstream chemicals. Additionally, the Shipowners Association has reported that some freight rates have started to increase due to the current international situation. The price hike on some routes has reached up to USD 1,500-2,000, resulting in an increase in chemical prices originating from China.
The supply shortage of upstream raw materials is expected to increase the prices of Indian phenoxyethanol in the coming weeks.
Elchemy Highlights
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