19 June 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--Increasing numbers of participants are now nearing the conclusion of third quarter negotiations in the European fatty acids market, sources said on Wednesday.
A producer said it has concluded the majority of its third quarter business with its consumers, settling both palm and tallow-based stearic acid at around €950/tonne FD (free delivered) NWE (northwest Europe).
From the business concluded so far, palm and tallow-based oleic acid prices have also remained relatively stable.
“I’ve purchased some volumes [of tallow oleic acid] for the third quarter at €1,050/tonne FD NWE,” one buyer said.
The buyer added it was currently in negotiations for palm oleic acid; however, it expects prices to be around the same level as the tallow-based counterpart.
Participants noted weaker demand for fatty acids from the rubber industry; however, this has been offset by good demand from end users in the detergents and candle markets.
With very little change to feedstock pricing over the past quarter, participants expect the remaining third quarter fatty acid deals to take place within the second quarter contract range published above.
A conclusion to any outstanding negotiations is expected in the next couple of weeks.
($1 = €0.75)
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