Asia mid-cut fatty alcohols bullish on firm PKO, restocking

13 March 2014 08:02 Source:ICIS News

SINGAPORE (ICIS)--Asian mid-cut fatty alcohols rose on the back of firm feedstock palm kernel oil (PKO) prices and restocking activities after a few weeks of waiting, market players said late on Wednesday.

Spot prices of mid-cut C12-14 fatty alcohols for April and May loading were assessed as higher and wider at $2,000-2,200/tonne FOB (free on board) SE (southeast) Asia on 12 March.

PKO prices in Asia gained over $265/tonne between late January and mid-March, sources clarified.

“Our bare minimum cost can only be covered by at least $2,300/tonne FOB SE Asia,” a southeast Asian producer said.

Discussion levels from many other southeast Asian producers were at $2,000-2,200/tonne FOB SE Asia for April cargoes.

Many of the buyers, meanwhile, were expressing buying indications at below $2,000/tonne FOB SE Asia.

However, no cargoes were available at those levels, with southeast Asian distributors and south Asian buyers saying that there were limited options but to pay $2,000/tonne and above in order to secure cargoes.

By Alexis Gan