05 March 2013 11:05 [Source: ICIS news]
KUALA LUMPUR (ICIS)--Participants in the European fatty alcohols market remain wary of excess palm oil availability which has resulted in an oversupplied market globally, sources said on Tuesday.
The creation of significant volumes of palm oil plantations in Indonesia has led to massive abundance of the product, which has caused a slump to feedstock prices of late.
Speaking to ICIS at the Palm and Lauric Oils Conference and Exhibition Price Outlook 2013 (POC), one supplier said in spite of growing markets in the Middle East, India and eastern Asia, it does not believe demand from the surfactants industry would be enough to absorb the oversupply.
Although many previously anticipated increased demand for palm oil from the biodiesel industry, this has not occurred.
Palm oil-based biodiesel does not currently meet the greenhouse gas emissions savings target, which is imposed on the industry.
It is possible when blended with products, but as this is not cost efficient, it has led to minimal usage in the biodiesel industry.
A buyer added that unless policies are amended, the oversupply of palm oils will take a “significantly long time” to be alleviated.
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