Asia palmitic acids gain $50/tonne on tight supply

20 March 2014 08:59 Source:ICIS News

SINGAPORE (ICIS)--Spot C16 palmitic acids prices in Asia increased by $50/tonne this week because of tight supply and firm upstream palm oil prices.
On 19 March, palmitic acids were assessed at an average of $1,825/tonne FOB (freight on board) SE (southeast) Asia, compared with $1,775/tonne FOB SE Asia in the previous week, according to ICIS.

“There are not many cargoes for April shipments, and palmitic acids prices higher than stearic acids is unusual,” a southeast Asian trader said, citing a number of unsuccessful bidding during the week.

Poor demand for higher stearic acids have resulted in lesser availabilities of palmitic acids, some market sources said.

During fractionation process, the excess content of C18 fatty acids would be hydrogenated to produce higher stearic acids of around 65% C18.

By Alexis Gan