Q2 negotiations commence in Europe fatty acids market

12 March 2014 17:42  [Source: ICIS news]

LONDON (ICIS)--Second-quarter negotiations in the European fatty acids market have now commenced, sources said on Wednesday.
The bullish outlook given by industry experts at last week's Palm and Lauric Oils Conference & Exhibition Price Outlook 2014, in Kuala Lumpur, Malaysia, continues to buoy palm feedstock futures prices, leading to higher palm-based acids prices, sources said.

One producer said it was now offering palm oleic acids for €1,300/tonne FD (free delivered) NWE (northwest Europe), owing to the firming feedstock costs it had seen of late.

“I have no choice but to offer at this level in order to make a profit,” it added.

Palm stearic acid prices have also increased from Q1 levels, with trades at €1,000/tonne FD NWE this week.

With raw tallow feedstock costs remaining stable, producers of tallow-based fatty acids have been able to remain much more competitive compared to their palm-based counterparts.

Prices of tallow oleic acid have been heard at around €1,200/tonne FD NWE. While, tallow stearic offers were heard around €900-960/tonne FD NWE.

With such a wide gap now present between the palm and tallow-based fatty acids, participants said it was inevitable that those buyers with the capability of switching between the two grades would opt for tallow fatty acids.

By: Neha Popat
+44 208 652 3214

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