Price and market trends: Europe Q2 fatty acids prices expected to be flat to down

12 April 2013 09:55  [Source: ICB]

Second-quarter contract prices in the European fatty acids market are widely expected to roll over or decline slightly from first-quarter levels, sources said on 3 April.

With second-quarter negotiations nearing a conclusion, participants expect little change to prices, owing to balanced market conditions.

With demand from the biodiesel sector for raw tallow feedstock weak as a result of the extended cold weather being experienced in Europe, sources noted increasing levels of material being made available for oleochemistry. This has led to a decline in raw tallow feedstock costs, one tallow fatty acids producer now expects prices "around €650/tonne [€507/tonne]" depending on the quality.

EU fatty acids

This has placed pressure on tallow-based fatty acid prices, with tallow stearic acid being discussed in the range of €900-980/tonne FD (free delivered) NWE (northwest Europe), a fall of €50-120/tonne from first-quarter levels. Tallow oleic prices are being discussed in a range of €1,000-1,200/tonne FD NWE, depending on source.

By: Neha Popat
+44 208 652 3214

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