02 April 2014 17:11 [Source: ICIS news]
LONDON (ICIS)--Further second-quarter contract negotiations were reported reaching a conclusion in the European fatty alcohols market, sources said on Wednesday.
One producer said it had now sold out of mid-cut material in Q2, and was no longer in the market making offers as a result.
The producer said it sold mid-cuts for Q2 at €1,600-1,700/tonne ex-tank, with those buyers who had concluded earlier paying towards the lower end of the range, while those that waited longer paying towards the higher end.
Meanwhile, two buyers said they had purchased their requirements for April and May, but opted not to cover for the entire quarter as they were hopeful prices would come down once extra volumes were made available to the market.
Both paid between €1,600-1,700/tonne FD (free delivered) NWE (northwest Europe), although one said that it did also receive offers higher than this.
“I was expecting to pay below €1,600/tonne, so am very disappointed,” one buyer said.
Another buyer said it would face difficulties in passing on these higher costs to its end users. “This quarter is going to be tough,” it added.
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