11 September 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--Fourth-quarter negotiations continue to take place in the European fatty acids market, with expectations of either a rollover or slight firming of prices from the third quarter of the year, sources said on Wednesday.
Although firmer palm feedstock prices have led to higher palm-based fatty acids prices being quoted in Europe, feedstock costs have now started to decline, leading many participants to expect very little change to fourth-quarter fatty acid prices from the preceding quarter.
One trader reports stable palm stearic acid prices at present, adding, however, that prices could increase towards the end of the year owing to firmer feedstock prices.
One buyer said it has purchased palm oleic acid for the fourth quarter, paying €1,150/tonne ($1,533/tonne) FD NWE.
Although this is within the third-quarter range assessed by ICIS, the buyer said this represented around a €50/tonne increase from what it paid for material during the previous three-month period.
Sources also expect a narrowing of the current price spread between palm and tallow-based fatty acids, and believe buyers may be likely to switch between the two grades as fourth-quarter negotiations ramp up.
($1 = €0.75)
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