symex holdings limited - australian oilseeds

The Australian Oleo Chemical Market

www.symex.com.au

Matt EllisSales & Marketing Manager

Symex Holdings Limited

Contents

• Oleo Chemicals

• Applications

• Global Market

• Australian Market

• Australia as an Exporter of Oleo Products

OLEO CHEMICALS“Oleo chemicals are molecules derived from fats

and oils”

• Glycerine

• Soap

• Fatty Acids

• Fatty Alcohols

• Methyl Esters

• FAME (Fatty Acid Methyl Ester or “Biodiesel”)

GlycerineFood Sausage Skins

Chewing Gum

Muesli Bars

Pharmaceutical Skin Emollients

Toothpaste

Gelatine Capsules

Hair Care

Hand Cream

Tobacco Cigarettes

Cosmetics Skin Lotions

Hand Creams

Polyurethane Foam

Glycerine

• Has to be USP/BP for most applications• Global market approx 1.3 million mt• Aussie market approx 9,000 mt• Bio-diesel has trashed prices

Glycerine

Refined Glycerine Market Prices

0200400600800

1000120014001600

Q1 '00

Q3 '00

Q1 '01

Q3 '01

Q1 '02

Q3 '02

Q1 '03

Q3 '03

Q1 '04

Q3' 04

Q1 '05

Q3 '05

USD

per m

t

CIF Chinese Main Ports

Source:- HBI

Soap

• Declining use in favor of liquids• Global market approx 6.0 mill mt• Aussie market approx 30,000 mt

Fatty Acids

• Demand continues to grow• Global market approx 6.0 mill mt• Aussie market approx 10,000 mt• Plastics, Lubricants, Rubber• Personal Wash, Household Cleaning

Fatty AcidsProduction Capacity

0

1000

2000

3000

4000

5000

6000

7000

1995 2000 2002 2005

'000 mt

Asia Pacific Europe USA

Source:- AOCS Oleo Chemical Conference-Athens April 2005

Fatty Alcohols

• Demand continues to grow• Global market approx 2.0 million mt• Aussie market approx 12,000 mt• Detergents• Shampoo

Fatty Alcohols

0

10

20

30

40

50

60

70

1995 2002 2005

% market share

Synthetic Natural

Source:- AOCS Oleo Chemical Conference-Athens April 2005

Fatty Alcohols

0

500

1000

1500

2000

2500

3000

3500

1995 2002 2005 2008

'000 mt

Global Capacity

Source:- AOCS Oleo Chemical Conference-Athens April 2005

Fatty Alcohols

2007100

2007200Mostly ChinaOthers

826TOTAL

200780MalaysiaPalm Oleo

200760ChinaSasol/Wilmar

200796BrazilOxiteno

200640MalaysiaP&G

200540MalaysiaCognis

200640IndonesiaP&G /Domba Mas

200630PhilippinesCocochem

200655PhilippinesKao

200660IndonesiaEcogreen

200525IndiaGodrej

Year‘000 mtCountryCompany

Source:- HBI

Bio-diesel

0500

10001500200025003000350040004500

2002 2003 2004 2005 2006 2007

'000 mt

Germany France Other Europe USA ROW

Source:- HBI

Bio-diesel

• Needs expensive equipment• Uses a large amount of energy *• French trials demonstrate success of 5% RBD Sun

Oil blends• Government refuses to de-fiscalise• Perhaps Mr. Costello would listen to Australian

farmers in the case for 5% Canola oil to be blended without excise

* Source:- http://research.cals.cornell.edu/entity?home=3&id=12088

Australia an Oleo Chemical Exporter

• Symex currently exports 77% of production• Australian market is not big enough• Globally competitive

– Raw materials– Energy– Freight

Australia an Oleo Chemical Exporter

• Raw Materials- tallow is currently only player

– Competitively priced with palm stearin– Rich in oleic acid– Low PUFA’s

• Opportunities– High lauric canola fatty alcohols– High erucic canola or Crambe erucicamides

Australia an Oleo Chemical Exporter

• Energy– Oleo chemical production is energy intensive– Australia enjoys abundant and therefore cheap natural

gas supplies– Labor less important than energy

Australia an Oleo Chemical Exporter

• Freight– Imports all in containers– Exports in bulk ships– Surplus of equipment that needs to be returned– Location closest to largest port is an advantage

Global Oleo Chemical Market

• Raw Materials– European tallow more expensive as more is used for

fuel– North Asian players need to import their tallow– SE Asian players have advantage of tropical oils

Global Oleo Chemical Market

• Energy– Natural gas prices have tripled in US– Asian countries net importers– Chinese infrastructure struggling to cope

• (particularly electricity during summer)

Global Oleo Chemical Market

• Freight– Internal freight costs in USA soaring

• Fuel costs• Driver regulations

– Chinese industry spread along 2,000 km of coast

Thank You

www.symex.com.au