LONDON (ICIS)--Outstanding first quarter contract negotiations are yet to be concluded in the European fatty acids market, sources said on Wednesday.
Participants note a great deal of Q1 business being finalised before the Christmas and New Year break, with many buyers making their purchases before the implementation of import duties on palm-based fatty acids from India, Indonesia and Malaysia.
However, those left with outstanding business are thought to be waiting for greater clarity over fatty acid prices, with many uncertain over the affects the import duties will have on pricing in Europe.
From the business concluded so far, palm oleic acid prices were heard at €1,100-1,150/tonne FD (free delivered) NWE (northwest Europe), while palm stearic acid prices were heard at €900-1,000/tonne FD NWE.
“I expect there will be increases [to palm-based fatty acid prices], once the full impact of the import duties are realised in Europe,” one trader said.
Participants expect any outstanding business to be finalised in the coming weeks.