Confusion stifles price negotiations in Europe fatty alcohols market

26 June 2013 23:59  [Source: ICIS news]

LONDON (ICIS)--Very little headway has been made with third-quarter negotiations in the European fatty alcohols market, with the recent increase in mid-cut prices leaving buyers uneasy over committing to material for the whole of the third-quarter, sources said on Wednesday.

Despite the current shortage of mid-cut material in Europe, buyers remain hopeful of the supply situation easing, owing to extra capacity coming back on stream over the next few months.

One buyer said it believes prices will inevitably decline during August or September, “I will only purchase fatty alcohols on a hand-to-mouth basis until then,” it said.  

In spite of this, suppliers continue to stand firm with their offers. One said that it was “I’m offering C12-14 fatty alcohols at €1,400/tonne ($1,842/tonne) ex-tank Rotterdam, at a minimum,” one said.

Another producer said that it would rather withdraw from the market altogether than lower its offers below €1,400/tonne FD NWE.

Although the summer season usually brings with is lower levels of demand from many sectors, the detergent industry remains strong consumers of fatty alcohols.

For this reason the producer does not anticipate having to lower its offers below €1,400/tonne.

With little activity currently taking place in the sport market, buyers for now seem content with waiting on the sidelines for further developments to take place.

($1 = €0.76)

By: Neha Popat
+44 208 652 3214

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