Europe Q2 fatty alcohols negotiation activity increases

17 April 2013 23:59  [Source: ICIS news]

LONDON (ICIS) -- Activity in the European fatty alcohols market has started to pick up, with increasing numbers of consumers now looking to conclude their second quarter contractual business, sources said on Wednesday.

Second quarter discussions had previously stalled in Europe, with many buyers anticipating a decline in fatty alcohol prices as a result of additional capacity coming on stream, together with a weak demand among end-users.

However, sources now anticipate that mid-cut fatty alcohols may increase by around €20-30/tonne ($26-39/tonne) in the short term, leading many buyers to push forward with their negotiations.

“I opted to purchase my second quarter requirements, as it doesn’t look like prices are going to come down any further for the time being,” one buyer said.

Although market participants do anticipate the additional capacities placing downward pressure on prices, many do not expect this taking effect on prices until later on in the year.

Sources report mid-cut fatty alcohol prices currently trading around €1,150-1,170/tonne FD NWE.

Many now anticipate a conclusion to second quarter negotiations within the next few weeks.

($1 = €0.76)

By: Neha Popat
+44 208 652 3214

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