22 February 2011 03:17 [Source: ICIS news]
SINGAPORE (ICIS)--Prices of C16-18 blended longchain fatty alcohols soared $100/tonne (€74/tonne) on Tuesday amid firmer demand and higher values of feedstock crude palm kernel oil (CPKO), market players said.
“The strengthening demand was mainly due to buyers shoring up inventory when prices were on an uptrend,” a Malaysia-based fatty alcohol producer said.
“This caused some material shortages in the market and pushed prices up,” the producer added.
Sellers highlighted that an increase in demand from downstream cosmetic applications also contributed to the increase in demand for C16-18 blended fatty alcohols.
Market players said that C16-18 blended alcohol prices were likely to remain firm for at least the first half of the year due to rising feedstock CPKO values.
“I don’t think C16-18 prices will decrease at all as CPKO prices seem likely to remain firm,” a Singapore based trader said.
Feedstock CPKO prices have been on an uptrend since January this year, rising $214/tonne to settle at $2,277/tonne FOB (free on board) Malaysia on 16 February.
Prices of C16-18 blended alcohols were assessed to be higher by $100/tonne at $2,150-2,250/tonne FOB SE Asia on 16 February, according to ICIS.
Prices are at a three-year high, showing gains of $1,250-1,300/tonne FOB southeast (SE) Asia from February 2009, according to ICIS data.
($1 = €0.74)
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