15 May 2013 11:51 [Source: ICIS news]
SINGAPORE (ICIS)--Palm oil freight rates in Asia will likely move at a tight range in the coming weeks amid continued weakness in buying sentiment, market players said on Wednesday.
From southeast Asia to India, palm oil freight rates for a 10,000-tonne vessel were assessed at $34-37/tonne (€26-28/tonne) for the week ended 10 May, according to ICIS.
A few enquiries are heard so far this week, even after Malaysia decided to maintain a 4.5% tax rate on palm oil exports for the fourth month, market players said.
The country is the second largest palm oil producer in the world next to Indonesia.
“[There is ] still [a] lack of cargo quotes. [Market outlook] is pretty uncertain,” an Asia-based charterer said.
India and China are the world's two largest importers of palm oil.
Indian end-users, which have reduced purchases of palm oil in April to early May given their high inventory, are expected to buy cargoes ahead of the Muslim fasting month of Ramadan, which will start in July.
($1 = €0.77)
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