Call Center :

+ 55 11 2065 - 5555
www.megh.com.br

presentation agenda
presentation agenda

overview of a petrochemical refinery...........

1º important concept

solvent extraction catalytic cracker

(old concept) (new concept)

solvent
extraction catalytic
cracker

BS 112
2% Fuels 888
8%
(Bright Stocks)
% gasolliine %
diiesell
solvent resiiduallfuells
de-oiling
(MEK/Toluene)l
1% losses
slack refined
wax refined
paraffin
paraffin
4% 2%
% 2%
% foot oils %
2%
%

2º important concept

solvent extraction
(with alternative technology for Bright Stocks)
(actual trend)

slack wax hydro-cracking

9%
% G III 70%
or
waxes’ catalytic G II 88%
hydro wax cracking
isomerization
GI 18%
18
%
solvent
dewaxing

9% refined paraffin
3º important concept

solvent extraction :
physical molecule separation

aromatics, polar molecule and waxes removed

catalytic cracking (FCC) or hydrocraking (HCC) :

H2 and catalyze to eliminate N2, sulphur and aromatics

the waxes are processed through isomerization and/or cracking

can be used with different kind of feedstocks into the process :

VGO, refinates, hydrocracking’s bottoms, waxes , ....

different kinds of lubes grades generation (GI, GII, GIII, .... )

presentation agenda
paraffin production

worldwide paraffin wax production:

1.000 T/y mkt share
Asia/Pacific 2.000 40%
North America 1.200 24%
Europe (W+E) 1.080 21%
Middle East 320 6%
Latin America 240 5%
Africa 160 3%
Total 5.000 100%

+ + = 85%

presentation agenda
main world slack waxes de-oilers

company local country 1.000 t/y start up

Sasol Wax Hamburg Germany 200 1972
IGI Farmers Valley Pennsylvania
Titusville Pennsylvania USA 65
Baytown Texas 1981
Toronto Ontario Canada 60 1949
Nippon Seiro Tokuyama Yamaguchi Japan 1951
65
Tsukuba Ibaraki Japan 1951
Naftowax Trzebinla Poland 45 1999
Jedicze Poland 15 1999
Parafina del Plata J.M.Gutiérrez Buenos Aires Argentina 25 1953
Iranol Company Tehran Tehran Iran 44 2003
Farinam Chemie Tehran Tehran Iran 8 1999
Samim Chemical Tehran Tehran Iran 5
Behran Oil Company Tehran Tehran Iran 3 1963
subtotal 01 535

main world slack waxes de-oilers

company local country 1.000 t/y start up

Subtotal 01 535
Chandri Wax
Mumbai Maharashtra India 20 1975
(Wax India)

Barasat Wax refinery Barasat West Bengal India 2 1976

others India 5

OJSC Wax Plant Belarus 18 2010

Total de-oilers 580
Total paraffin wax 5.255
de-oilers market share ~ 11,0%

quack, quack,
quack, quack .... !!
slack wax paraffins : trends

slack wax de-oilers ,: ~ 580 K Tons ~ 11%

paraffins : 5.255 K Tons

slack wax de-oilers will turn a strong option to

paraffin wax supply.

Iran and India appears as strong players into the slack and
slack de-oilers marketing.
supply routes of slack wax pre-established.
Russia
Iran

the slack wax costs grow up as so as paraffin wax.

slack wax will represent the opportunity differential costs.

Iran slack wax + paraffin export flow

France
8%
Ukraine
2%
Spain Pakistan
Syria
a 7% China
Italy
n
Iran
Saudi India
Arabia
UAE 52%
1%
4% Indonesia
2%
Nigeria Ethiopia Singapure 9%

2% Uganda Kenya
1%

Tanzania
2%
= commercial partners after 2000

% = 2006 exported quantity

 Russia slack wax + paraffin export flow

1.000
main destinations : Slack wax refineries Ton/year

Poland Naftowax ~ 80% (1) Angarsk Pettrochemiicall Reffiinery 60,,0

~ 92% (2) Neffttemasllozavod Reffiinery 13,,0

Germany Sasol ~ 12% (3) Niizhegorodnefftteorgsiinttez reffiinery 60,,0
(4) Niizhny Novgorod Reffiinery 40,,0
(5) Novo kuiibyshevsk Reffiinery 40,,0
(6) Novo-Uffiimsky Reffiinery 65,,0
Norway (7) Permnefftteorgsiinttez reffiinery 44,,0

Sweden (8) Ryazan Reffiinery 6,,0

(9) Tyumen Oiill 45,,0
Fiinlandl (10) Vollgograd neffttepererabottka reffiinery 35,,0

Moscou
Germany Mo (3,4)
(8)
Polland Bellarus North
(7) (1)
(5) (9) Korea
Ukraiine (10) (6)
Romeniia
Molldaviia
(2)
Mongolliia South
Bullgaria Korea Japan
Kazakhstan
Macedôniia Georgiia

Armeniia Azerbaiijjan
Turkey Uzbequiisttan
Turko Quiirjiiquiisttão
meniisttan Chiina
Taiijjiikiisttan
Syria Iran
Affganiisttan
Taiiwan
Pakiisttan

presentation agenda
paraffin wax capacity big movements

paraffin wax capacity big movements – (2008/2013)

world wax capacity (2008 jan) – 6.113.000 Ton/year

2008 year = – 207.000 Ton/year ∆ (2008/2013) = – 379.000 Ton

∆ (2008/2013) = – 6,2%
6 years
2009 year = – 167.000 Ton/year

2010 year = – 53.000 Ton/year

wax demand avg. annual growth
+ 2,0%
2011 year = – 257.000 Ton/year 6 years = + 12,6%

2012 year = – 20.000 Ton/year

2012 year = + 325.000 Ton/year

~ 19,0%
presentation agenda

overview of a oil-chemical refinery...........

 overview of a oil-chemical refinery...........

Oils & Fats

crude glicerin fatty acids

separation

glicerin fractionation
pre-treatment
stearin olein

reffination of hydrogenation / distillation / fractionation

glicerin
soap paste

refined
glicerin stearic oleic fatty fatty hydrogenated
acid acid acids alcohols oils & fats

iso-stearic amines
acid
polymerization amides fatty esters
polymerized
fatty acids

presentation agenda
oils & fats world overview – 2008

RM sources to hydrogenation/esterification

Mio Tons
palm 41,0
soy 37,2
colza 19,1
sunflower 10,0
PKO - palm kernel 4,9

other oils 21,9

tallow 9,0
butters 7,4
other fats 13,0
hydrogenatiion reactor

demand market share

2000 soaps l ubes

fatty sosoaappbbars 2%
acid s 16%
35%

others pllastiics others

13% 2% 7%

animal
55%% paiints&
food coatiings
human 2%
36% 3311%%

2008 so
soa aps pllastiics
fattttyy 2% l ubes
sosoaappbbaarss 2%
aciciddss 1155%%
3 55%% paiints&
&
coatiings
2%
others
1166%%
others
7% candlles
< 1%

aannimmaal biiodiiesell
55%% hhuummaann 4%
2288%%
f ood
32%
presentation agenda

world oils & fats production

world oils & fats production x paraffin wax demand

average evolution (1980/2009)

7,7%

4,6%
44,11%%

2,1% 1,8%

palm soybean total tallow paraffin

oil oil oils & & fats wax
fats
Paraffin wax x HOF waxes

HOF production to achieve 100% of paraffin wax demand

5%

4% plus in oils & fats

~ 5,0 Mio Tons production
3%
< 3%
2%

1% ~ 60%
mkt share

0%
00 01 02 03 04 05 06 07 08 09

quantity between the end stocks avaliable to oils and fats

Paraffin wax x HOF waxes

there is a necessity of additional quantities of hydrogenation to supply paraffin market

in a medium and long terms.

oils and fats growth follow the GDP growth.

there are no HOFs waxes extra quantities been produced to supply the new demand.

anyway exist enough raw material to sustain that (take a look at the ending stocks).

the soybean & palm oil + tallow ending stocks can supply the new demand.

in the next years will have a demand pressure in the following sectors:

• Food
• Biodiesel
Paraffin wax x HOF waxes

exist free capacity at worldwide hydrogenation sites.

there are no trustable data regarding the worldwide hydrogenation

capacity available in our hands, right now.

the world hydrogenation capacity is pulverized, different of paraffin wax

that is concentrated at refineries.

the price levels will follow

the trends of paraffin and
the paraffin will follow the
trends of crude oil.

the hydrogenation gross

margin is a consequence
of paraffin’s price level.

presentation agenda
conclusions

the candle manufacture needs to find different and alternative ways to enhance their margins
through a better management of internal manufacture issues like :

stocks rationalization and efficiency.

high level of production capacity.

automatic machines manufacture (extrusion, press, etc...).

mass/energy balance of their production.

raw material control

raw material heating system
candle cooling system

new packaging developments.

product mix analyze and changes evaluations.

enhance/analyze of distribution channels.

nothing more a local producer but work hard to be a worldwide

manufacturer.

appendix

What are the main factors to consider when you buy raw materials ?
(multiple answers test)
(realized by Petrobrás with brazilian candle manufactures)

fi‒¡ › ~ › fi‒› ~· ‡› URKW

\ ‡ ¡ ‹ ~ ƒ« ¡ ‹ ‡ › QRKV

fl · \ “ ƒ ~ \ ~ ¡ ~ › fi ‒› ~ · ‡ › PWKU

fi‒\ ” › ~ ¡ fi \ £ \ « ¡ ‹ ‡› PSKV

~ ƒ † fi › ‹ ƒ ʻ ƒ “ ƒ ~ \ ~ ¡ ~ ¡ ¡ ‹ ‡ ‒ ¡ £ \ PPKX

¢\“‡\ ~¡ › fi š› UKQ ????

| › ‹ ¢ ƒ\ ‹ \ T KU
Scoby-do by-do
“ › | \ “ ƒ” \ š › SKO
where are you !
› · ‡ ‒ › † « › ‡ ƒ¶ › † XKQ
gooooosssst …
appendix

the question is ...

?
where I’am....????

Thanks for your attention!!!

Call Center :
+ 55 11 2065 - 5555
www.megh.com.br