Malaysia oleochemicals exports dip in Dec due to volatile market

11 January 2011 03:33  [Source: ICIS news]

SINGAPORE (ICIS)--December exports of Malaysian oleochemicals dipped amid fears of prolonged market volatility caused by a spike in raw material costs and festive season lull, industry sources said on Tuesday.

December exports of oleochemicals fell 7.2 percent or 14,361 tonnes month-on-month, according to data released by the Malaysian Palm Oil Board.

Market players believed that the decrease in exports was due to the recent spikes in prices brought about by rising feedstock palm oil derivatives prices. Moreover, the festive season lull also kept buying interest thin.

“With prices of all oleochemicals trading at a historical high currently, it is no wonder that demand is weak,” the producer added.

Prices of oleochemicals including fatty acids, fatty alcohols and glycerine were up $50-200/tonne (€39-154/tonne) on 5 January. C12 fatty acids were up $200/tonne at $2,800-2,900/tonne FOB (free on board) SE (southeast) Asia while C12-14 fatty alcohol saw price increases of $50/tonne at $3,000-3,100/tonne FOB SE Asia.

“Moreover, fears of a sudden market correction and contract defaults similar to the post-Lehman brothers crisis weighed on market sentiment,” a Singapore-based oleochemicals trader said.

($1 = €0.77)

To discuss issues facing the chemical industry go to ICIS connect

By: Serena Seng

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly