The volatility in oleochemical feedstock prices seen over the past few months has battered the global fatty acids and fatty alcohol industry. The advent of the worst global economic downturn since the Great Depression of 1929 has also tempered downstream demand, squeezing most fatty acid and fatty alcohol manufacturers and keeping operating rates dismal.

With crude oil prices plummeting from their peak in 2008 and tallow/vegetable oil prices remaining high, are oleochemicals fast losing their appeal as viable and renewable substitutes to synthetic alternatives?

The refined glycerine market has also gone through a roller coaster ride, shedding nearly 70% of its value in 2008, before rebounding slightly in the first quarter of the new year. Will this situation repeat itself, and how can market players capitalize on such volatility?

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