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<strong>ECSA</strong> TRADE<br />
NUTRITION & PHARMA<br />
MARKET REPORT
October 2019<br />
products<br />
PROPYLENE GLYCOL (MPG/DPG)<br />
Until September prices of propylene <strong>and</strong> dipropylene glycol have continuously fallen. Since the<br />
beginning of 2019 listing prices decreased of 30% despite of the stable price of propylene oxide.<br />
Main reason is the European weak dem<strong>and</strong> during warm winter months. From October prices<br />
should increase according to higher crude oil quotations.<br />
SUCRALOSE<br />
Even if there is overcapacity, prices keep stable at their lowest level since the beginning of the<br />
year. The price “war” among the major Chinese producers (Anhui Jinhe, Kamble, Sunvision)<br />
seems to be over. In 2018 Sunvision Sweet invested more than one mio usd for an activated<br />
carbon columns in order to offer snow white sucralose.<br />
VITAMIN C / CALCIUM AND SODIUM ASCORBATE<br />
No further decreases can be expected in the second <strong>and</strong> third quarter of 2019 after the drops in<br />
2018. Quotations are stable at lower level: stocks in China <strong>and</strong> Europe are slowly decreasing <strong>and</strong><br />
unsold Vitamin C produced in 2018 finally disappeared. Main producer, Northeast Pharm stopped<br />
production of Ascorbic Acid in June of this year: the new facility outside the city of Shenyang will<br />
be completed by the beginning of 2021. Sodium Ascorbate is regularly available. It is expected<br />
that the company NHU will start production in 2020: it will mean new quantity in the market.<br />
economy<br />
WORLD: Difficult global background: global economy slow-down<br />
<strong>and</strong> growing investment uncertainty<br />
After a decade of moderate economic growth, global growth has clearly slowed down in all<br />
regions in the first semester of 2019. However, most large economies still face limited risk of<br />
recession. So far, the slowdown seemed to be provoked by long-term factors such as stagnant<br />
labour supply <strong>and</strong> weak productivity growth rather than by a broad decrease in investment.<br />
Labour markets are tight in most major industrialized countries.<br />
Global growth lacks dem<strong>and</strong> drivers <strong>and</strong> there is increasing uncertainty (US-China escalating<br />
tensions in trade <strong>and</strong> technology sectors, the Brexit-issue). Further to spreading to nationalsecurity<br />
<strong>and</strong> domestic political issues, trade (<strong>and</strong> currency) dispute could disadvantage both the<br />
involved parties <strong>and</strong> the global economy.<br />
With the deterioration of economic growth, the public debt issue could become an urgent<br />
problem in certain countries, adding financial instability to an already precarious economic<br />
situation.<br />
According to the World Bank, global trade growth should fall from 4.1% last year to 2.6%<br />
this year. The weakness in trade has affected mainly capital goods. The current trade disputes<br />
uncertainties <strong>and</strong> other geopolitical issues impact the global business confidence.<br />
Companies are more hesitant to program large capital expenditure plans. While investment in<br />
construction is strong, investment in equipment <strong>and</strong> machinery is weaker than last year.<br />
Industrial countries face decreasing dem<strong>and</strong>, lower inflation rates <strong>and</strong> decreasing inflation<br />
expectations. The economic slowdown was followed by a shift in monetary policies by the world’s<br />
largest central banks toward greater easing. Economic actors are increasingly concerned by the<br />
economic impact of increased extreme weather (hurricanes, floods, wildfires).<br />
NUTRITION & PHARMA
October 2019<br />
news<br />
<strong>ECSA</strong> improved safety of special waste storage<br />
with full sprinkler coverage of this area<br />
In order to continuously improve safety, in August 2019 <strong>ECSA</strong> extended the Sprinkler system in<br />
all dedicated areas to the collection <strong>and</strong> storage of special waste.<br />
Now the 95% of the warehouses are fully protected from fire with a foam/water sprinkler plant<br />
<strong>and</strong> recovery basin for the extinguishing water.<br />
This investment was not required by any law or external dem<strong>and</strong> but it was an <strong>ECSA</strong> decision in<br />
order to reinforce our safety systems.<br />
With this new system <strong>ECSA</strong> increase its SQAS Ranking from an average of 92% to 95% (compared<br />
to an European average percentage of 86%).<br />
NUTRITION & PHARMA
This is just<br />
a sneak peek...<br />
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> 20 products commented by <strong>ECSA</strong> experts<br />
> Up to date analysis about the World economic situation<br />
> A quick overview of price trends<br />
> News about <strong>ECSA</strong> Chemicals AG<br />
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