22 October 2013 12:50 [Source: ICIS news]
PRAGUE (ICIS)--Increased price volatility will be seen in the global oleochemical markets, a senior industry executive said on Tuesday.
"[The fatty alcohol market] was a fairly strong market, then some [additional] capacity came online. Even though at the time lauric oils were going up, the fatty alcohols prices dropped by 10% to 15% in a matter of weeks," said Norman Ellard, managing director Asia for IP Specialties Asia said during the 9th World Oleochemical conference in Prague, Czech Republic.
A few years ago it would have been unprecedented to talk about $3,000-4,000/tonne (€2,190-2,920/tonne) for these, he added.
The rationale, Ellard said, was that oleochemical business has to make a return on the assets.
"I've done it myself and you are going to make those returns where you can," he said.
"If you can't reflect the price of the raw material in the 12-14 alcohol, and 8-10s are tight, then you are going to reflect it in the price of 8-10s and that's life," he added.
($1 = €0.73)
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