US Q3 fatty alcohols rise on feedstock, demand

16 July 2008 23:29  [Source: ICIS news]

HOUSTON (ICIS news)--Third-quarter US prices for some fatty alcohols took an upward turn due to stable demand and feedstock cost pressures, buyers said on Wednesday.

In the C12-15 alcohols market, sources said prices rose to 93-102 cent/lb ($2,050-2,249/tonne, €1,292-1,417/tonne) ex-tank on feedstock cost pressures, including vegetable-oil costs for natural material and ethylene for synthetics.

Those prices were an increase from the previous range of 84-93 cents/lb, according to global chemical market intelligence service ICIS pricing.

Buyers said the higher end of the range represents synthetic prices buoyed by higher feedstock ethylene costs and the surging energy complex, while the lower end reflects large orders of C12-14 alcohols.

Average ethylene prices were 63 cents/lb for March contracts, but June contracts would likely settle above 70 cents/lb, market sources said.

In the C16-18 alcohols market, buyers said third-quarter prices were in the 81-92 cent/lb range, up from the previous ICIS pricing range of 75-83 cents/lb.

Industry participants said the causes of the increase include strengthening demand and rising production costs.

Prices were stable in the C8-11 alcohols market due to oversupply, sources said.

US fatty alcohol producers include Shell and Proctor & Gamble.

($1 = €0.63)

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By: Greg Holt
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