LONDON (ICIS)--Little progress has been made in Q1 fatty alcohol contract negotiations, sources said on Wednesday, despite the majority of participants now back in the market following the Christmas break.
Producers and buyers continue to disagree over mid-cut fatty alcohol pricing, leading to a delay in the negotiation process.
While buyers expect offers around €1,350/tonne FD (free delivered) NWE (northwest Europe), suppliers said current feedstock price levels dictate mid-cut prices should be closer to €1,430/tonne FD (free delivered) NWE (northwest Europe).
Some buyers stated this week they have purchased some volumes for January, however, were as yet unwilling to cover for the entire quarter.
“I will wait until the Wilmar plant is up and running, to see if the extra volumes being made available to the market will push down prices,” one buyer said.
Sources last month heard offers from Wilmar from its Rotterdam plant, for February delivery.
Producers ascertain that although palm feedstock price levels have declined over the past month, they have not been significant enough to warrant lower fatty alcohol offers as yet.