Tag: chemical supply chain

IR38

What’s Trending in the Methanol Market?

Methanol being a simple form of alcohol is considerably different from drinking alcohol (ethanol). Consuming as little as 100ml of this chemical can cause death, so it is wise not to confuse between the both of them. However, this compound is widely used by chemical companies because of its uses in organic synthesis, as a fuel, solvent, and antifreeze. It is also used in the manufacturing of products including paints, plastics, foams, resins, plywood, explosives, and polyesters. The shale gas revolution in the US has uplifted the global methanol market as suppliers have an abundant supply of low-cost shale gas to produce methanol. (SpendEdge Procurement Market Intelligence Report) Technological advancements such as DAVY process, Lurgi Technologies, GasTechno Process, and Uhde technology is expected to increase the production capacities and efficiency considerably.

Request Free SampleIncreasing Prices

Methanol prices have been rising by as much as 175%-185% since the third quarter of 2016. Analysts are attributing such steep rise in prices of methanol to factors including growing demand as a transportation fuel, power source in manufacturing units, and rising cost of natural gas. A price comparison in Europe can paint a clear picture regarding the price rise where the prices rose from €240/MT during July-September 2016 to €400/MT in March 2017.

Manufacturing Methanol from Carbon Dioxide Feedstocks

Scientists are always on the lookout for cost-effective ways to produce methanol. Recently, scientists from India were able to manufacture methanol from carbon dioxide under prevailing atmospheric temperature. Such methods do not require the use of rare-earth elements and instead uses metal-free catalysts such as pyridine decorated multi-walled carbon nanotubes. Excluding the use of expensive rare-earth elements remarkably brings down the overall production cost.

Adoption of MTO Technologies

The use of MTO technology to convert methanol to olefins has been on the rise recently. Such technology provides high-purity ethylene and propylene as an output. Organizations are opting for MTO technology instead of naphtha cracking for producing olefins. This method is very cost-effective compared to producing olefins from crude oil.

China’s Dominance in the Market

APAC is the leading consumer region in the methanol market and is expected to account for about 70% of the global demand. The aforementioned growth is due to China’s dominance in this market due to the presence of vast coal reserves. The report estimates that by 2019, China will account for about 56% of the global consumption and around 48% of the global production. China is in a position to dominate the methanol market and control prices as the abundance of coal reserves allows for low-cost manufacturing.

Read more about the trends in this market along with category management, global methanol prices, strategic purchasing, and procurement best practices in SpendEdge’s upcoming report on the global methanol market.

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procurement risks

Supply Chain Analysis Helps a Pulp and Paper Chemicals Industry Giant Optimize their Supply Chain

Overview of the Pulp and Paper Chemicals Industry

The global pulp and paper chemicals industry is expected to proliferate in the coming years owing to the rising demand for specialty papers in packaging as well as printing applications. Recycling in the paper industry increases the demand for different specialty chemicals; thereby, driving the pulp and paper chemicals market. Also, favorable industrial production activities in developing countries strengthen the prospects of the pulp and paper chemical industry. Moreover, the increasing literacy rate especially in emerging economies, such as India, and rising demand for papers with high print performance and quality are expected to drive the pulp and paper chemicals industry.

Let’s look at some of the fundamental factors that will influence the growth prospects of pulp and paper chemicals industry in the coming years.

  • New raw materials: Plants and grasses should be genetically altered and strategically sourced to reduce pulping costs, unwanted waste products, and maturation times; to enhance desirable fiber properties and yield, and to convert annual growth cycles to perennial. Also, one must keep track of the supply chain risk involved in the sourcing of these new raw materials.
  • New machinery and processes: In this competitive environment, there is a rare time-window to design manufacturing equipment from the ground up and to incorporate modern technological advances. For instance, the development of high-power, solid-state electronics has made the generation of intense ultrasonic and microwave fields practical and economical. These technologies could help in redesigning pulping and papermaking processes.

These factors are forcing companies operating in the pulp and paper chemicals industry to leverage the use of supply chain analysis to implement an end-to-end follow-up process to resolve any discrepancy across the supply chain. The supply chain analysis solutions also help firms operating in the pulp and paper chemicals space to devise cost-effective and best-in-class product and service offerings to the customers and increase overall profitability.request free proposal

The Business Challenge and Journey

Our client, a leading player in the pulp and paper chemicals industry was facing serious issues of equipment and capacity shortages. Moreover, a significant increase in plant capacity and volume growth, coupled with a lack in equipment and vessel capacity, meant the client needed a robust, flexible, and a reliable supply chain to maintain their service levels. Therefore, to cope with these growth and capacity issues, the pulp and paper chemicals client worked closely with SpendEdge.

To help the client overcome their supply chain issues, the supply chain analysis experts at SpendEdge, tailored a comprehensive research methodology. The research approach comprised of primary and secondary research coupled with qualitative and quantitative data collection procedures.

During the course of this engagement, the pulp and paper chemicals client was able to analyze their existing domestic distribution network. Additionally, the client gained actionable insights into the scope and deliverables, before choosing an export transloading solution. This also helped them their distribution network less dependent on equipment and vessels.

Key questions answered in this supply chain analysis engagement

The Results

The supply chain solution helped the pulp and paper chemicals client develop a robust, flexible, reliable supply chain to maintain their service levels. Furthermore, the client saved USD 0.6 million in logistics costs and eliminated 4.4 days each year from its supply chain.

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IR17

Top Challenges in the Refinery Catalysts Market

Refinery catalysts are predominantly used in petroleum refineries to alter the rate of chemical reactions and enhance the quality of gasoline products produced through processes such as FCC and hydro-processing. Petroleum refineries extensively use refinery catalysts to enhance the operational efficiency of valuable hydrocarbons. Additionally, they also minimize the adverse effects of products such as gasoline and diesel on the environment by assisting in the removal of sulfur from crude oil. In petroleum refineries, they are used in hydrocracking, hydrotreating, fluid catalytic cracking, and alkylation processes. The procurement market intelligence report on refinery catalysts market states that the market growth will be driven by demand for ultra-low sulfur diesel. This is because governments across the world are prompting refineries to limit sulfur content to 0.5% by 2020 in fuels.

Request Free SampleChallenges in the Refinery Catalysts Market

Costly E&P Activities

E&P activities for crude oil are costly as it requires the use of advanced technologies for conducting essential processes such as wireline logging, seismic mapping and survey, and drilling (vertical or horizontal). Because of this E&P companies are operating at a razor-thin margins and are operating in a highly unstable financial environment. The increasing cost of E&P activities is affecting the production capacity of the refineries, which is posing a challenge to the global refinery catalyst market.

Adoption of Renewable Sources of Energy

Today, the whole world is moving towards renewable sources of energy. Governments are investing heavily in hydro, wind, and solar energy sources to decrease their dependence on fossil fuels. The most significant oil producers in the Middle East are also investing heavily in solar energy. Additionally, the emergence of electric car companies like Tesla has urged the governments to prioritize electric vehicle over gasoline. The growing importance of renewable sources of energy is thereby limiting the growth of the global refinery catalysts market.

Rising Cost of Rare Earth Elements

Oxides of rare earth elements are quintessential in the refinery process as zeolite cracking catalysts lack hydrothermal stability during the FCC process. The use of zeolites with rare earth elements provides hydrothermal stability and tends to enhance gasoline yield. However, such rare earth elements are sparsely available, and their costs are ever-increasing. The rising costs of rare earth elements have limited the growth of the global refinery catalyst market.

Read more about the challenges in the refinery catalysts market along with specialty chemicals, oil refinery process, sourcing strategies, pricing models, logistics and supply chain issues, and procurement best practices in SpendEdge’s upcoming report on the global refinery catalysts market.

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IR31

Achieving Procurement Excellence in the Chemical Industry

The global chemical industry is one of the world’s largest industry employing millions of people and generating billions of dollars in revenue. The chemical industry is critical to the operation of automotive, pharmaceutical, agriculture, and construction industry as they procure the primary inputs from the chemical industry. Changes in price, production, and quality from the chemical industry will highly impact such connected industries. As a result, it is important that the chemical industry achieve procurement excellence by obtaining the right raw materials at the right price, with the correct specification, quantity and quality. Purchasing expenditures amounts for a significant part of sales revenue for the chemical companies. For instance, purchasing costs account for about 58% of the total cost in the global benzene market. (SpendEdge Procurement Market Intelligence Report – Global Benzene Market) Additionally, achieving excellence in the procurement of raw materials for the chemical industry is critical to their success as CPOs can realize substantial cost savings due to high volatility of input materials. For instance, crude oil is a significant cost driver in the SE_Demo2petrochemical industry as it is the building block for chemicals such as ethylene, propylene, and aromatics. The sharp oil price dip in 2014 came as a major shock for the chemical industry.

Supplier Cost Breakup in the Benzene MarketComplexities in Chemical Purchasing

Achieving procurement excellence in the chemical industry won’t be an easy task. Procurement in the chemical industry is complicated by numerous factors, and CPOs have to address a wide variety of factors to make strategic decisions. For a start, chemical companies will have hundreds of products and specifications ranging from polymers, petrochemicals, intermediaries, derivatives, and inorganic chemicals which is sold to thousands of customers. Specialty chemicals is a different beast when it comes to complexity, as it is highly diversified that serve multiple end-use industries such as construction, oil and gas, cosmetics, textiles, and food. And if that was not enough then multiple grades of chemicals are available from suppliers spread across vast geographies. With quality being of utmost importance, CPOs often face the dilemma to source the right chemical grade for the right price as a slight variation in quality will hugely impact the finished product.

Additionally, going by the 80-20 rule, 80% of the raw materials used in the production of chemicals account for only 20% of the cost. That’s a lot of work for the purchasing manager that affect such small part of the cost base. For instance, manufacturing certain specialty chemicals may use thousands of additives, some of which may be used only in a small quantity, but largely influence the quality of the final product. If you thought that was all, chemical suppliers still have to package and supply these products in different packages, in various quantities and quality, to different customers. Analyzing all these factors in order to achieve procurement excellence can be a big headache for purchasing

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View Full ReportsExternal Factors Affecting Procurement in the Chemical Industry

Political Factors

  • Changes in government policy, ethics and quality control regulations
  • Changes in foreign policy regarding regions and territories that financial, logistics, and compliance issues
  • Supply chain disruption in cases of political collapse, revolt, and disjoint

Environmental Factors

  • Added cost of putting up measures to control chemical spills, gas release, and chemical waste
  • Innovations in processes which deals minimal to no damage to the environment, but such innovations come at a cost

Social Factors

  • Globalization and rapid expansion of population is increasing the global demand for chemical products
  • Labor rate differences is a crucial factor in selecting destinations to source raw materials from

Technological Factors

  • Technological advancement can drastically reduce product lifecycles and enable mass customization
  • Purchasing managers must make decisions if adopting new technology will reap benefit as opposed to traditional means

Legal Factors

  • Toxic Substances Control Act (TSCA) have adversely affected the development of new chemicals
  • Clean Air Act, Clean Water Act, Occupational Safety and Health Act, Product Safety Act, and numerous other regulations affect purchasing in the chemical industry

Economic Factors

  • Currency fluctuations can impact cost of materials as payments have to made in foreign currency for global suppliers
  • Changes in oil and commodity prices largely impact the price of the final product
  • Interest rate, lending rate, and inflation

Achieving Procurement Excellence in the Chemical Industry

Chemical companies can enhance their savings by following procurement best practices and giving purchasing a strategic level importance. A proper segmentation of spend data can give in-depth insights for a purchasing manager on areas of improvement. Spend analysis can also identify hidden materials that are of strategic importance to the firm alongside other low-cost critical materials and tail spends. Generally, critical materials account for a small number of commodities but take up a large part of the cost-base. Also, they are strategically important for the firms as supply chain disruptions and price volatility will primarily affect the entire cost structure.

The Commercial and Economic Levers

The most obvious way to increase procurement efficiency in the chemical industry is through contracts and supplier management. However, in order to achieve procurement excellence, companies should consider other elements as well. As the raw material prices hugely depend upon commodities and oil market, price volatility can negatively affect them. So, companies insert a clause in the contract or renegotiate the contract to offset such changes. Chemical manufacturers should always try to stay ahead of the game by understanding suppliers true cost base so as to provide strong leverage while renegotiating contracts.

The price of chemicals can vary as per region due to fluctuations in quality and availability of raw materials, local demand, energy prices, labor costs, technologies, and production capacity of that area. For instance, MAP grade of Phosphate is costlier in North America one of the biggest consumers of phosphate with average prices ranging between $300-$332 per ton. On the other hand, the prices in the MEA region is about $248-$284 per ton. (SpendEdge Procurement Market Intelligence Report – Global Phosphate Market) The lower prices are because MEA accounts for about 80% of the global exports which can be attributed to the Arab spring, and availability of large amounts of scarce resources such as water and energy. At a glance, chemical companies might be tempted to partner with suppliers in the region where prices are low. But in order to achieve procurement excellence, purchasing managers should look at the global indicators and advancements in technologies to identify regions where the prices may fall in the near future. So, it makes sense to build a relationship with suppliers where the prices are expected to fall in the near future. For instance, the chemical industry requires a significant amount of energy to produce finished goods. The US is planning to increase its investment in low-cost energy sources which will drive down the cost of chemical commodities. CPOs can factor in differences in commodity and logistical cost to ascertain the final price of the commodity. Additionally, cost is not the only factor if one is looking for procurement excellence, total turnaround time, product quality, and payment terms also need to be considered before entering into a purchasing agreement.

Narrowing down to a specific geography, the prices and quality will vary among each individual supplier due to differences in their plant utilization capacities, technology, production volumes, business efficiency, and business strategy. Performing a cost breakdown analysis (CBA) is an effective means to understand suppliers cost base in order to gain the upper hand in the negotiation process. To efficiently perform CBA, all cost drivers in the chemical industry ranging from materials cost, labor costs, conversion costs, overheads, logistics costs, and supplier margins should be taken into consideration. The data to perform such analysis can be obtained from ERP systems, supplier invoices, spend analysis summaries, and procurement systems. However, negotiations should not be based solely on cost aspect. It is essential to analyze the strategic importance of supplier to the business to perform an effective negotiation. Today, more and more companies are looking at digital technologies such as electronic quotation, eRFQ, procure-to-pay, and e-sourcing to manage multiple suppliers and get the best deal to achieve procurement excellence.

The Technical Aspects

Apart from the economic factors, another way to cut costs is by focusing on technical aspects of the chemical production. Chemical companies can achieve substantial savings opportunity by altering the specification or grade of raw materials. However, such act is not as easy as it sounds, as adjusting such specification impacts the quality of the final product. One of the major cost incurred in the procurement of chemicals is the logistics cost. By understanding technical factors, companies can save on logistics cost by altering the state, form of quality of the material. For instance, suppliers ship liquid oxygen as it is less bulky and less costly than an equivalent capacity of the high-pressure gaseous state. For other chemicals, it makes more sense to procure it in dry or powdered form instead of a solution to reduce the overall weight and volume. For instance, caustic soda is available in various concentration such as 32% solution, 50% solution, and 60% solution. (Global Caustic Soda Procurement Market Intelligence Report) Instead of purchasing various concentration of solutions, buyers can purchase higher concentration solution and add water to the anhydrous form of caustic soda to form solutions of required strength. However, buyers should also be aware that higher concentration of caustic soda needs to be stored at temperatures of about 212F-230F to retain its liquid state. The purchasing departments will then have to decide by comparing logistics cost against storage costs to achieve procurement excellence.

Some suppliers choose to substitute expensive inputs with cheaper ones to bring down the overall cost. A careful analysis of such mixing ratio to achieve similar outputs can save chemical companies a ton of money. Additionally, choosing the form and transport mode also affects the cost of the chemical components. For instance, ocean shipping is about 75% cheaper than air transport. But some circumstances favor air routes as the delivery times are much faster, and it also contributes to the overall inventory turnover affecting profitability. Knowledge of chemistry gives a considerable advantage in terms of achieving procurement excellence, as certain costs can be avoided by pre-mixing and pre-processing chemicals at supplier’s facilities.

The Demand Lever

Procurement excellence can also be achieved through coordination amongst suppliers and business units to optimize product supply. For instance, instead of purchasing different containers for various SKUs, chemical companies can have standardized specifications of finished goods packaging at different sites. Additionally, opting for central warehousing can make the companies more adept at fulfilling the demand of each processing facility. Rationalizing the specifications for a component can sometimes reduce cost with minimal impact on the final product. Instead of stocking different chemical components to manufacture various end-product, chemical companies can opt to stock common components which can be used in the manufacturing of multiple end-products. It’s a smart way to gain procurement excellence as procurement managers have to deal with lesser complexity, reduce overall sourcing cost, and schedule production effectively.

Tracking Tail-Spend and Supplier Rationalization

It is evident that multiple low-cost materials make up for a large part of company’s purchasing portfolio. In order to achieve significant savings across categories, companies should carry out a tail spend analysis to figure out the tail end of the spends. They may also resort to strategies to use a single supplier for all such tail spends. Supplier rationalization can lead to procurement excellence as a manageable number of suppliers will fight for your business, and such suppliers can be of strategic importance to the company. Additionally, suppliers may also provide favorable pricing for high-volume purchases. Another alternative would be to eliminate the requirement of material altogether and substitute it with similar commodity if the end product is of little commercial value.

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IR31

Hurricane Harvey Sweeping Away the Ethylene Production in the Chemical Industry

The recent hurricane Harvey was an incredibly destructive Atlantic hurricane leaving 90 casualties and causing economic damage of about $70 billion to $200 billion. The chemical industry in the US, notably Houston, was hit hard by Hurricane Harvey. Firstly, the Hurricane Harvey chemical spill resulted in the leakage of a large amount of pollutants, endangering the life of people and plants nearby. It is estimated that out of the 132 petrochemical sites located along the Houston Ship Channel, including specialty chemical facilities and refineries, at least one-third and up to half are offline.SE_Demo2

How will it affect the procurement and supply chain for the chemical industry?

Shortage of Essential Chemicals

The chemical industry will witness a deficit in commodities as ethylene and propylene, the basic building blocks for numerous chemical will be short in supply. The Hurricane Harvey chemical plant explosion has resulted in the loss of production of ethylene of about 50,000 tons per day. Additionally, about 30% of US propylene, benzene, and butadiene capacity was shut down in the face of the storm. Established players such as Chevron Phillips had to shut down operations, whereas DuPont took its olefins complex offline and Lubrizol suspended operations at its facilities in the Houston area.

Effects Across the Supply Chain

The shortage of such chemicals has affected other industries that are a part of the ethylene supply chain. For instance, the shortage of ethylene has forced a majority of the country’s capacity for making polyethylene plastic to shut down. Additionally, Formosa Plastics also announced that due to the lack of inventory, the company would not be able to meet commitments for polypropylene, polyethylene, and PVC.

Falling Demand for Natural Gas

Numerous factories in the chemical industry shutting down had led to the decrease in the demand for natural gas. A majority of the producers use natural gas as a raw material for the production of ethylene. It has been reported that the demand for natural gas fell by more than 5 billion cubic feet a day, which is a significant amount compared to the country’s regular consumption.

 

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IR33

Procurement Research Report on the Global Benzene Market Now Available from SpendEdge

The global benzene market is seeing demand-supply gaps across regions such as oversupply in APAC and supply deficits in North America. This is because benzene has no direct application and is only used as an intermediary chemical.

LONDON: The procurement research report on the benzene market is a crucial part of SpendEdge’s chemicals category portfolio and offers a all-inclusive analysis of the key factors influencing the supply market, strategic procurement decisions, pricing models, and procurement best practices. Furthermore, it also offers deeper insights into the supply chain management, key market developments, and demand-supply shifts to help sourcing and procurement experts make smart procurement decisions.

The global benzene market is primarily driven by the demand for its derivative products such as styrene, and cyclohexane that find several applications in various industries. Also, the primary demand for benzene is from the textiles sector, which uses benzene as an intermediate chemical to produce styrene monomer.

“Procurement managers must evaluate innovations incorporated in manufacturing facilities as this provides assurance of access to recent technologies,” says Anil Seth, a chemicals industry procurement research specialist at SpendEdge.

One of the key challenges faced by procurement managers is the difficulty in assessing plants’ operational data. It is crucial to gain a complete understanding on how suppliers run their manufacturing units and by analyzing the efficiency of suppliers’ operations. However, procurement managers may not be able to obtain access to these data as this is critical information pertaining to suppliers’ operations.

 

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 This procurement research report on the benzene market offers insights on:

  • Supply markets, growth drivers, trends, and imminent restraints
  • Key suppliers and assessment of their capabilities
  • Procurement best practices
  • Negotiation strategies and cost-saving opportunities
  • Pricing models and category innovations
  • For a comprehensive, detailed list, view our full report

 

 

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IR3

Procurement Research Report on the Global Potash Market Now Available from SpendEdge

The growth of the bio-fuel industry and need to increase the yield of food crops are resulting in high demand for potash fertilizer. Moreover, a decline in the prices of potash is also driving the market growth.

LONDON: The procurement research report on the potash market is an indispensable part of SpendEdge’s chemicals category portfolio and offers an exhaustive analysis of the key factors influencing the supply market, strategic procurement and sourcing decisions, pricing models, and procurement best practices. Furthermore, it also offers profound insights into the supply chain management, key market developments, and demand-supply shifts to help sourcing and procurement experts make smart procurement decisions.

The global demand for food crops is increasing due to increase in global population and rise in disposable income of consumers. Also, rapid urbanization has led to a shortage of arable land used for growing food crops. This has increased the demand for potash fertilizer that can increase the yield of food crops from the limited acreage of farming lands available.

“Procurement managers must procure potash from suppliers that have extensively automated their manufacturing plants,” says Anil Seth, a chemicals industry procurement research specialist at SpendEdge.

A potash mining project requires five to ten years to reach its full potential. This can lead to delays in procurement for purchasing managers, as suppliers need to explore new mining opportunities due to depletion of reserves constantly. However, emerging technologies such as selective dissolution are reducing these lead times, but finding suppliers that are utilizing such technologies is difficult, as only a few suppliers are currently using them.

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This procurement research report on the potash market offers insights on:

  • Supply markets, growth drivers, trends, and imminent restraints
  • Procurement best practices
  • Negotiation strategies and cost-saving opportunities
  • Key suppliers and assessment of their capabilities
  • Pricing models and category innovations
  • For a comprehensive, detailed list, view our full report

 

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3

Procurement Research Report on the Global Toluene Market Now Available from SpendEdge

Toluene is experiencing substantial demand as an octane booster in the automotive fuel industry. Moreover, higher demand for toluene-based derivatives, such as xylenes and benzene, has increased the demand for the product globally.

LONDON: The procurement research report on the toluene market is an indispensable part of SpendEdge’s chemicals category portfolio and offers an in-depth assessment of the key factors influencing the supply market, procurement decisions, pricing models, and procurement best practices. Furthermore, it also offers an in-depth analysis of the supply chain management, key market developments, and demand-supply shifts to help sourcing and procurement experts make smart procurement decisions.

Toluene is used to produce chemicals such as benzene, xylenes, and toluene diisocyanate, and the market for these derivatives is experiencing robust demand, which can be attributed to the growth of industries such as construction, adhesives and sealants, home furnishing, and furniture.

“Purchasing managers must automate most of their procurement processes, which include automated ordering of raw materials and fuels,” says Anil Seth, a chemicals industry procurement research specialist at SpendEdge. “This will reduce the management efforts associated with procurement and the risk of a supply shortage due to manual errors,” added Anil.

Prices of toluene are consistently changing due to factors such as variations in demand and supply, and volatility in crude oil prices. This is leading to purchasing managers facing difficulty in estimating procurement budgets. This is also compelling them to hire consultants to forecast future prices, which adds to their procurement costs.

 

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This procurement report on the toluene market offers insights on:

  • Supply markets, growth drivers, trends, and imminent restraints
  • Key suppliers and assessment of their capabilities
  • Procurement best practices
  • Negotiation strategies and cost-saving opportunities
  • Pricing models and category innovations
  • For a comprehensive, detailed list, view our full report

 

 

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IR35

Procurement Research Report on the Global Base Oil Market Now Available from SpendEdge

Growing demand for bio-based base oils for use in products such as bio-lubricants and synthetic lubricants is also contributing to the market growth for base oil.

LONDON: The procurement research report on the base oil market is an indispensable part of SpendEdge’s chemicals category portfolio and offers an exclusive assessment of the key factors influencing the supply market, procurement best practices, procurement decisions, and pricing models. Furthermore, it also offers an in-depth analysis of the supply chain management, key market developments, and demand-supply shifts to help sourcing and procurement experts make smart procurement decisions.

The increasing demand for base oil from industries such as automobiles and its growing use as hydraulic oil in industrial engines such as pumps are driving the growth of the global base oil market. The demand for bio-based base oils due to the growth of the bio-lubricants market is contributing to the market growth as well.

“Purchasing managers must collaborate with suppliers that provide customized base oils based on end-use applications,” says Anil Seth, a chemicals industry procurement research specialist at SpendEdge. “They must look for the specifications based on their specific requirements such as viscosity level, sulfur content, and pour point,” added Anil.

The logistical costs for base oils are high. This is because transportation of base oil requires utmost care during shipment, apart from adequate packaging to prevent spoils and leakage.  Moreover, these costs are passed on to purchasing managers, which increases their procurement costs.

 

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This procurement report on the base oil market offers insights on:

  • Supply markets, growth drivers, trends, and imminent restraints
  • Key suppliers and assessment of their capabilities
  • Procurement best practices
  • Negotiation strategies and cost-saving opportunities
  • Pricing models and category innovations
  • For a comprehensive, detailed list, view our full report

 

 

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IR24

Procurement Research Report on the Global Paraffin Wax Market Now Available from SpendEdge

The majority of the demand for paraffin comes from the candle manufacturing segment, which accounts approximately half of the overall global consumption of paraffin wax.

LONDON: The procurement research report on the paraffin wax market is an indispensable part of SpendEdge’s chemicals category portfolio and offers a comprehensive explanation of the key factors influencing the supply market, procurement decisions, pricing models dynamics, and procurement best practices. Furthermore, it also offers an in-depth analysis of the supply chain management, key market developments, and demand-supply shifts to help sourcing and procurement experts make smart procurement decisions.

The growth in demand for paraffin has been from a wide range of industries. This is primarily due to the easy refining capabilities of paraffin wax and a broad range of physical properties that can be easily modified through refining techniques.

“Innovative strength of the supplier is one of the most important parameters that purchasing managers must evaluate,” says Anil Seth, a chemicals industry procurement research specialist at SpendEdge. “This assures access to recent technologies, providing them first mover advantage,” added Anil.

Paraffin wax is a by-product obtained from the refining of crude oil or petroleum. Hence, it has the presence of high level of impurities, which are removed in several subsequent processes. However, it might be difficult to ascertain several compounds that might be present in small quantities due to lack of definitive or standard tests. This can lead to lack of uniformity in products offered by different suppliers.

 

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This procurement report on the paraffin wax market offers insights on:

  • Supply markets, growth drivers, trends, and imminent restraints
  • Key suppliers and assessment of their capabilities
  • Procurement best practices
  • Negotiation strategies and cost-saving opportunities
  • Pricing models and category innovations
  • For a comprehensive, detailed list, view our full report

 

 

Get unlimited access to all our reports. Our Insights platform ready-to-use procurement research reports, latest supplier news, innovation landscape, markets insights, supplier tracking, and much more at the click of a button. Request a free demo now

 

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