19 July 2013 11:46 [Source: ICIS news]
SINGAPORE (ICIS)--Spot prices of 80/20 blend soap noodles in southeast Asia are on their third week of declines, largely tracking the downtrend in prices of key feedstock crude palm oil (CPO), market sources said on Friday.
Offers for soap noodles containing 78% fatty matter are being quoted at $810-820/tonne (€616-623/tonne) FOB (free on board) SE (southeast) Asia, they said.
On 12 July, spot prices were assessed at $820-830/tonne FOB SE Asia for the week ended 12 July, down by 1.2% from 5 July, according to ICIS data.
CPO futures for August delivery traded on Bursa Malaysia closed at Malaysian ringgit (M$) 3,328/tonne ($1,063/tonne) on Friday. In end-June, CPO futures closed at M$2,337/tonne, according to news agency Bernama.
“Some buyers were speculating that [soap noodle] prices will continue to go down so they are holding back their purchases or only buying small volumes,” said a Malaysian soap noodle producer.
Despite weak buying sentiment during the week, producers are convinced that demand is there and that trading activity is likely to resume when upstream CPO prices stabilise.
($1 = M3.13 / $1 = €0.76)
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