10 March 2010 22:38 [Source: ICIS news]
HOUSTON (ICIS news)--Second-quarter US detergent-range fatty alcohol contract prices are being pressured up on supply concerns, buyers said on Wednesday.
Second-quarter contracts remained under negotiation, but buyers and sellers discussed spreads that were likely to settle mostly in the mid-70s cents/lb, based firmly on obtaining secure supply.
First-quarter detergent-range fatty alcohol contracts were assessed in a 62.50-69.50 cent/lb ($1,378-1,532/tonne, €1,020-1,134/tonne) spread, according to global chemical market intelligence service ICIS pricing.
“It’s consistent supply that is a concern,” one fatty alcohol buyer said.
Asian alcohol producers are increasingly able to select different production streams and can choose to sell the vegetable oil feedstocks, mainly coconut oil (CNO) and palm kernel oil (PKO) directly into the global oilseeds markets, sources said.
“They don’t have to make the alcohols, but the
Fatty alcohol import suppliers have to negotiate with distant “home offices” that may, or may not, allocate sufficient alcohols into various global regions, sources said.
Importers include Kao of Japan, Ecogreen and KLK, among others.
Procter & Gamble is a multi-national company and the largest global fatty alcohol producer, with production units in Asia and the
Detergent-range fatty alcohols are feedstocks for numerous household and industrial cleaning products, covering a broad array of surfactant and lubricant market segments.
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