28 August 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--Some small levels of fourth quarter business were heard reaching a conclusion in the European fatty acids market this week, sources said on Wednesday.
With market participants now starting to arrive back from their seasonal summer break, thoughts have turned to fourth-quarter negotiations.
One producer said it has concluded some fourth-quarter business, with one of its major buyers purchasing tallow and palm stearic acids at a rollover from Q3.
The producer had settled its Q3 contracts for both palm and tallow-based stearic acid at €950/tonne ($1,267/tonne) FD (free delivered) NWE (northwest Europe).
One buyer said it has seen a €30-40/tonne increase in the price of palm oleic acids for delivery in September.
It attributed these increases to firming palm feedstock values seen of late.
The market remains muted for now, with the majority of buyers suggesting they will most likely enter the market during the early part of September to commence fourth-quarter negotiations.
($1 = €0.75)
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