SINGAPORE (ICIS)--Mid-cut fatty alcohols prices in Asia were weighed down by buying resistance owing to weak demand, market sources said on late Wednesday.
Demand from major consumer -China market - was lacklustre owing to high domestic inventory. Some players also felt demand was typically slower during summer season.
Import volume of industrial fatty alcohols to China in May dropped 12.76% to 19,186 tonne as compared to a month ago at 21,992 tonne.
However, the recent improved China industrial manufacturing reading in June, likely positive result from government economic stimulus program, might be lifting some optimism in the Asian market, sources added.
During the week, restocking activities were ongoing slowly in certain countries in northeast Asia, southeast Asia and south Asia.
However, some buyers continued to buy cautiously owing to uncertain market outlooks and supply situations.
Spot C12-14 fatty alcohols prices fell at the lower-end by $20/tonne, to $1,580-1,630/tonne FOB (freight on board) SE (southeast) Asia in the week ended 9 July.
According to some southeast Asian end-users, offers from producers dropped by around $60-70/tonne from a few weeks ago to $1,600-1,650/tonne FOB SE Asia, amid softer feedstock trends and buying resistance from buyers.Feedstock palm kernel oil (PKO) prices were softer over the past two weeks, fuelling the bearish sentiment for mid-cut, C12-14 fatty alcohols.