Pricing Situation

As was expected, the higher prices of 2010 and 2011 led many farmers (in all suitable regions) to plant more castor beans, which increased the supply in the following years. Prices in 2012 dropped heavily due to an exceptional year and the cultivation efforts of the previous years. Especially in 2012, the prices were not in direct correlation with the crude oil prices. What remains to be seen is if that supply and the rising demand will balance the equation or if speculation and inefficient trading will dictate spot prices. 

Another factor stipulating the recent (speculative) price development of castor compared to other oil crops (such as soy bean, rape seed or palm oil - prices not shown) is castor oil s consistently high concentration of C18 fatty acid. This makes replacement with other oil crops difficult for existing industries based on this chemistry as there are no realistic crop alternatives. 

Presently, all polyamides produced from biomass derived monomers are based on those monomers derived from castor oil. To a large extent, the price of bio-polyamides will thus be directly influenced by the castor oil price. Such price formulas in addition to the moderate economy-of-scale options and logistics will likely keep bio-polyamides in the upper price range. 

More information on pricing of biomass and raw materials for bio-based polymers can be found in Chapter 13 of this book. 

This table does not give any indication of grades or compounding options. As mentioned in section 10.2.1, rarely is a polymer, let alone a polyamide marketed pure (as a base polymer). Especially in high performance applications, tailoring, modifications and certain quality features are needed and sometimes essential. To ascertain the possibility of employing a biopolyamide for demanding applications, joint customer accompanied research and development is advised. 

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Operating severity can be used to vary product distribution to optimize the economics in the context of a producers specific feed/by-product pricing situation. 

Acetic anhydride is one of the most important esters. The major market for acetic anhydride is in the production of cellulose acetate Other important uses Include production of cellulosic plastics, vinyl acetate, and aspirin. Acetic anhydride is u mature commercial product enjoying a stable price situation and steady growth... 

Since isocitric acid is quite expensive, adjusting it to the normal range in an adulterated juice would not be economically practical. The price situation could change, however, if heavy emphasis is placed on this acid as a criterion of authenticity. 

But to date the products are, at best, acceptable adulterants, based on limited development, and no real research work. Nor is the price situation favorable to cocoa substitutes. Swiftly falling prices and accumulating stocks for cocoa from mid-1977 to early 1980 are more of an overreaction than anyone predicted. Based on the information presently available, the outlook for cocoa substitutes is not favorable. 

When solvent-refined coal is compared with low sulfur oil as a competitive fuel, the local delivered price situation would determine the competitive balance. For example, in the Chicago area where low sulfur fuel oils are selling for 71-75 /MM Btu, the solvent-refined coal could be furnished from the aforementioned hypothetical plant for 53-75 /MM Btu. However, on seacoast locations such as New York, the Gulf Coast, and the West Coast, low sulfur fuel oil could be currently obtained for 61-73 /MM Btu. For the East Coast, a mine-processing plant complex in West Virginia could deliver solvent-refined coal for 53-65 /MM Btu at most population and industrial centers, which is certainly competitive. However the longer transportation distances between a plant in the Wyoming area and the West Coast areas would probably be less attractive in comparison with delivered fuel oil. 

The aforementioned change of raw material supply, from ore concentrates to APT, etc., starting in 1987, did not improve the price situation, but had a dangerous impact on MEC converters, as well as APT and ferrotungsten plants. Some of them were forced to close. 

Prior to the energy crisis, it could be demonstrated that the cost differential between high and low sulfur fuels would balance the increased expenses for operating pollution control equipment. With the current erratic fuel pricing situation it is difficult to make such a comparison. However, Research-Cottrell offers processes capable of meeting federal particulate and sulfur dioxide requirements and thereby allows the user more freedom in his fuel selection. 

But on a long term basis a major increase of the amount of Pd used in automobile converters might change the price situation completely. Indeed, presently only 9 % of the Pd available to the market is used in automotive emission control catalysts. In case of Pt this share is about 45 %, whereas the world supply of Pt and Pd is in the same order of magnitude, see Figure 2. 

As to prices, a comparison on an equivalent basis between sodium and magnesium shows that at 16.5 cents per pound for sodium and 32.5 cents per pound for magnesium in carloads, and ton lots, respectively, sodium is just as expensive as magnesium in the United States. This price situation may even be more favorable for sodium, if its full substitution from the technological angle is possible, because of process cost savings of various kinds, like easy removal of the compound formed, for instance, by wet methods. 

It is conceivable that the bio-based polyamides might also find many suitable appUcations in the broad area of automotive and tmck parts, but due to their current price situation and low capacities it is highly unlikely that this will be the dominant segment. As seen in Table 10.1, the bio-based polyamides have a different set of properties compared to the more price sensitive short-chain polyamides. To gain market entrance, it would be wise to focus on appUcation... 

Evaluation of the cost price situation in different raw material deposits. 

The experience of the foreign countries and price situation of sugar beet in Ukraine indicate that to develop the technologies which use cheaper and economically better raw material for bioethanol production is an important task for sugar beet production, as the use of sugar beet and the products of their processing for the manufacture of other coimnodities, besides sugar, makes them more competitive in comparison with other crops. 

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