04 September 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--Increasing numbers of fourth-quarter negotiations were heard in the European fatty acids market, with early indications of slight increases to both palm and tallow-based fatty acids prices, sources said on Wednesday.
Following increases of around €50/tonne ($66/tonne) to the raw tallow feedstock, a producer of tallow-based fatty acids said it would likely increase prices for both stearic and oleic grades.
“I will offer tallow oleic acid at €1,200/tonne FD NWE, and tallow stearic acid at €1,000/tonne FD NWE,” the producer said.
A supplier of palm-based acids also said it would target increases in the fourth-quarter, owing to firmer feedstock costs seen of late.
It said it would offer palm oleic acid at €1,150-1,170/tonne FD NWE, while palm stearic acid would now be offered in excess of €900/tonne FD NWE.
The supplier added that it anticipates increased competition from tallow fatty acids, owing to the higher increases to palm feedstock costs in comparison to those seen by the tallow feedstock.
“I fear buyers may switch to the cheaper alternative,” he said.
($1 = €0.76)
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