SINGAPORE(ICIS)--C16 palmitic acids prices in Asia increased by $20-50/tonne this week, supported by tight supply and healthy demand from downstream animal feeds additive sectors, market sources said on late Wednesday.
Selling indications were at $1,250-1,300/tonne FOB (freight on board) SE (southeast) Asia, with limited availabilities for August and September loadings.
Few traders were not successful in obtaining offers or a full-container requirement, given limited supply.
Some buyers with immediate needs had no choice to accept the current prices, market sources said.
“There [are] no offers. I need at least one full container load (FCL),” said a trader based in southeast Asia.
A typical 20 feet FCL carries around 16-18 tonnes, market sources said.
A buyer in northeast Asia was willing to pay prices at around $1,300/tonne FOB SE Asia for September shipment, but available supply is less than 10 tonnes, market sources said.
The animal feedstocks sector typically consumes 80% purity C16 fatty acids.
Palmitic acids of 98-99% purity, meanwhile, were used for ester products, such as isopropyl palmitate (IPM), and for cosmetic or personal care sectors.