13 March 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--Activity in both the European fatty acids and alcohols markets has yet to pick up as expected following the conclusion of the Palm and Lauric Oils Conference and Exhibition Price Outlook 2013 (POC) in Kuala Lumpur, Malaysia, last week, sources said on Wednesday.
With many buyers opting to conclude their second-quarter business after the POC, players had expected negotiations to ramp up in the aftermath of the event.
However, sources in both markets said expectations from the event of bearish conditions taking effect on palm oil prices has deterred some buyers from entering the market.
“Talk of palm oil prices declining later on in the year has kept participants away from the market,” one fatty acids trader said.
Analysts at the POC expect a rise in crude palm oil production this year from both Malaysia and Indonesia will lead to an oversupplied market, and will place increased pressure on prices of the feedstock.
One buyer said it was “hopeful” fatty alcohol prices would decline as a result.
Mid-cut fatty alcohol prices are currently being discussed at €1,050- 1,150/tonne ($1,364-1,494/tonne) free delivered (FD) northwest Europe (NWE), depending on the source.
($1 = €0.77)
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