Europe Q4 fatty acids drop by as much as €140/t
08 October 2008 23:59 [Source: ICIS news]
ONDON (ICIS news)--Fourth-quarter fatty acid contracts were agreed with price drops as low as €140/tonne ($192/tonne) on falling upstream pricing and a bleak demand outlook, buyers and sellers said on Wednesday.
The most significant price drops were noted in the palm-based markets, prompting consumers to optimise their consumption of these grades where possible.
“We are trying to switch to vegetable-based products wherever possible,” one consumer said.
Sources broadly agreed to prices for triple-pressed palm stearic acid at €830-860/tonne FD (free delivered) NWE (northwest Europe), down €100-140/tonne. Prices either side of this range were also reported but were deemed exceptional.
Standard palm oleic acid prices were heard in a very wide range of sub €900-1,100/tonne FD NWE, down €100-120/tonne for most contracts. Fourth-quarter prices were assessed lower to reflect the majority of agreements at €980-1,050/tonne.
The majority of tallow stearic acid pricing for the period was reported at €880-950/tonne FD NWE, down €30-70/tonne.
Tallow oleic acid pricing was widely reported steady in a €1,050-1,100/tonne FD NWE bracket.
Not all consumers were happy to lock in their prices for a quarter, as a weak demand outlook for the period as well as further weakness anticipated in the upstream market would likely push prices lower, they said.
($1 = €0.73)
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