Furfural News, Brenkem Consultants Asia

Furfural News, Brenkem Consultants Asia

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Furfural and Derivatives Outlook Q1 2011

Ongoing drought conditions in North East China, driest for more that 60 years continue.. The authorities predict an acute water shortage in 2011. Current corn cob quality is low and Pentose yields are down thus more cobs are required to maintain Furfural production.

Energy (electricity) is currently rationed by industry as China attempts to reduce her carbon Foot print.. This is also driving prices higher.

Brenkem continues to supply existing customers with Furfuryl Alcohol, THFA and other derivatives and can maintain supply as the cordial long term relationships with producers such as Zhu Cheng (now the worlds largest capacity FA plant), and other key producers continue to prosper.

Supply outlook is for prices to remain high until cobs from new seasons corn crop become available in Q2. We believe that prices will fluctuate but that there will be no significant downward movement. Domestic demand for FA in China is increasing as the world largest auto market continues to thrive. A significant number of auto components are cast using Furane No Bake Resin based on Furfuryl Alcohol.

Penn Speciality Chemicals have initiated a Dumping Investigation into Imports of THFA into USA from the Peoples Republic of China. This unnecessary and mischievous act is seen as a further attempt to disenfranchise legitimate supplies of key chemicals produced in China for consumers in the USA. Key American customers and Chinese producers are vigorously defending the case as they believe it is ill founded and unjustifiable.

The over all Furfural and Derivatives supply situation in China continues to tighten. Prices are in an upward trend and there is international support from customers whose policies dictate two suppliers for key chemical raw materials.


Furfural and Furfuryl Alcohol supply position in China is tight as raw material shortages and low prices discourage ongoing production. Huge ocean freight increases on TEU’s to USA applied by the Shipping Conference.

Bookmark this page for regular up to the minute reports from local people based in the heart of the Furfural production region in China.



Dumping duty applied to imports of Furfuryl Alcohol into the EU. For more detailed information and the official postion, click here. The local producer who initiated this dumping case has immediately announced a price increase.

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