26 June 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--Further third-quarter negotiations reached a conclusion in the European fatty acids market this week, with the majority of business settling within second-quarter levels, sources said on Wednesday.
Most tallow oleic acid sales reported so far have been between €1,100-1,200/tonne ($1,447-1,579/tonne) FD (free delivered) NWE (northwest Europe).
However, one producer said it may increase its tallow oleic acid offers owing to higher offers from Asia.
“Increased palm oleic acid offers from Asian producers [are] placing further upward pressure on the tallow-based fatty acid prices,” it said.
The producer said that its palm oleic sales so far have been around €1,150-1,200/tonne FD NWE, €50-100/tonne higher than the majority of second-quarter contract prices.
Meanwhile, tallow stearic fatty acid sales are currently around €920-940/tonne FD NWE, while palm stearic fatty acid sales are around €900-950/tonne FD NWE, sources said.
Market participants expect the balanced conditions to continue in Europe, and anticipate fatty acids remaining around the levels at which they are currently trading throughout the summer months.
A conclusion to any outstanding third-quarter negotiations is expected next week.
($1 = €0.76)
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