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