07 March 2014 11:33 [Source: ICIS news]
SINGAPORE (ICIS)--Downstream soap noodle prices rose over the week ended 7 March, on bullish market sentiment of feedstock prices led by strong price expectations for crude palm oil (CPO) and palm kernel oil (PKO) during the Palm and Lauric Oils Conference 2014 (POC) in Kuala Lumpur, industry sources said on Friday.
Export prices of 80/20 standard blend soap noodles with total fatty matter (TFM) 78% made via the fatty acid route, were assessed at $1,000-1,030/tonne FOB (free on board) SE (southeast) Asia, for the week ended 7 March, an increase of $20-30/tonne from the previous week, according to ICIS.
In India, 80/20 standard blend soap noodles using palm fatty acid distillate (PFAD) as the key feedstock was negotiated at Indian rupees (Rs) 59-61/kg EXW (ex-works) excluding taxes, an increase of Rs 4-6/kg from the previous week, according to ICIS data.
Soap noodle prices have been on the uptrend and are likely to rise further considering the expected increase in prices and strong feedstock price conditions after the POC, said several market sources.
By market closing on Friday, CPO futures for May loading were traded at ringgit (M$) 2,893/tonne (€890/tonne) DEL (delivered), around $137/tonne higher than the previous week, according to Bursa Malaysia data.
Buyers, on the other hand, are divided on their behaviour. Some buyers have entered to make volume purchases, while others are waiting for the following week to review weather conditions before making bookings.
“Buyers need some time to digest, they cannot give much information at the moment,” according to a key producer.
The Palm and Lauric Oil conference 2014 runs from 3-5 March.
($1 = M$3.25, $1 = Rs61.02)
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