Renewable chemicals welcome outlet for molasses

Indications for 2011/12 point to a record molasses production: most of the growth in Europe and Asia

Global molasses prices have come down quite a bit since the beginning of 2011 with the product trading at less than EUR149 a tonne in Rotterdam compared with EUR160 in January. It can be argued that this was to be expected given the high level of sugar prices for around two years which have triggered a rise in plantings and the expectation of bumper crops in several origins in 2011/12.

With production on the rise, prices for molasses will remain under pressure for the time being and export quotations of less than $100 per tonne might become the rule rather than the exception. In an effort to prevent prices from falling to these levels for an extended period of time, the milling industry is set to increasingly turn to the markets for fermentation products like ethanol, organic acids and even biopolymers as outlets.

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Tags: global prices, fermentation, sugar content, cane to sugar production, polylactid acid (PLA), MSG production, Vietnam, Java


Renewable Chemicals, 2011-12-12.


Ajinomoto Co., Inc.
Indorama Ventures Public Co. Ltd.


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