LONDON (ICIS)--Europe Q4 fatty acid prices have been assessed firm this week on the back of firmer trends in upstream prices.
Rises in feedstock prices have been widely attributed for the upward pressure on prices. This was particularly seen in prices for palm-based fatty acids, which increased €70/tonne to €920-1,020/tonne FD (free delivered) NWE (northwest Europe) for stearic acid and €150-170/tonne to €1,120-1,250/tonne FD NWE for oleic acids.
Meanwhile tallow-based stearic acids firmed by €10/tonne to €860-960/tonne FD NWE and tallow-based oleic acids gained €20-30/tonne to €1,000-1,050/tonne FD NWE.
Sources have recently commented that fundamentals in the European market are balanced to tight. While there has been no suggestion that buyers have been unable to cover their required volumes, the high price of raw materials is said to have dampened some production, as producer try to mitigate the risk of holding excess highly priced material.
A source this week said these conditions are stable and many players are now turning their attention to monitoring ongoing upstream trends, ahead of negotiations for Q1 prices.