09 April 2014 23:59 [Source: ICIS news]
LONDON (ICIS)--Second-quarter contract negotiations have now concluded in the European fatty acids market, sources said on Wednesday.
Palm stearic acid settled at €950-1,000/tonne FD (free delivered) NWE (northwest Europe), an increase of €50/tonne on the low side, and €20/tonne on the high side.
Palm oleic acid increased by €20/tonne on the low side and €40/tonne on the high side, settling at €1,140-1,270/tonne FD NWE.
Although palm feedstock values have declined during the past few weeks, sources note they remain at high levels, hence leading to firmer palm-based fatty acids prices during the second quarter.
Tallow oleic acid meanwhile, was concluded at €1,130-1,250/tonne FD NWE, an increase of €50/tonne on the high end.
Meanwhile, tallow stearic acid settled at €900-980/tonne FD NWE, a decline of €40/tonne on the low end, and €20/tonne on the high end.
A few deals took place outside of the above ranges; however these were not within the widely agreed consensus.
Raw tallow feedstock costs have remained relatively stable during the first quarter, allowing producers of tallow-based fatty acids to regain their competitive edge in the market, sources noted.
A producer said it was able to achieve slight price increases to tallow oleic acid grades, as demand for oleic fatty acids was strong.
Tallow stearic acid prices declined, however, owing to the lower levels of interest in this grade, sources said.
With a spread opening up between palm and tallow-based fatty acids prices, market participants predict that greater numbers of buyers will turn to the tallow-based alternatives during the second quarter.
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