02 April 2008 23:59 [Source: ICIS news]
LONDON (ICIS news)--Second-quarter European fatty acid contract prices moved up €30-100/tonne ($47-156/tonne) on the back of high feedstock costs, buyers and sellers said on Wednesday.?xml:namespace>
Tallow fatty acid prices increased by €30-35/tonne but its vegetable counterparts saw larger hikes of between €50-100/tonne, following increased volatility in the upstream palm oil market in the first quarter.
Second-quarter tallow stearic prices were assessed €30-35/tonne higher, taking prices to €875-930/tonne FD (free-delivered) NWE (northwest ?xml:namespace>
The bulk of tallow oleic business was pegged between at €1,000-1,050/tonne FD NWE, up €30/tonne from the previous quarter.
Second-quarter triple pressed vegetable stearic prices were assessed between €900-1,000/tonne FD NWE, up €50-100/tonne.
Standard palm oleic business was reported between €1,050-1,100/tonne FD NWE. This represented an increase of €50/tonne from the previous quarter.
Numbers either side of the ranges were also heard but they were not widely confirmed.
On the feedstock front, standard European tallow fat prices were subject to average increases of €20-30/tonne, with values reported between €630-660/tonne FD NWE.
For crude palm oil, there had been a spate of record highs in the first quarter, when May crude palm oil (CPO) futures moved above the Malaysian ringgits (M$) 4,250/tonne ($1,328/tonne) mark.
However, over the last few weeks there has been some downward pressure on vegetable oil prices.
On Tuesday morning, crude palm oil (CPO) futures plunged by the daily limit of 10%, with benchmark June delivery CPO futures trading at M$3,078/tonne EXW, down M$317/tonne from Monday’s close.
Fatty acids find outlets in various different sectors such as lubricants, surfactants, food, personal care and cosmetics.
Major players include Oleon, Uniqema, Undesa, Evonik, Danisco and Nuplex Resins.
($1 = €0.64/$1 = M$3.20)
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