LONDON (ICIS)--Lower mid-cut fatty alcohol offers were heard in Europe this week, with softening feedstock values continuing to impact on the market, sources said on Wednesday.
Third-quarter negotiations continue to take place as a result, with many buyers holding back from locking in volumes for the entire quarter in the hope of achieving lower prices.
Mid-cut prices have been heard at €1,450-1,550/tonne FD (free delivered) NWE (northwest Europe) so far.
Sources said some suppliers were aggressive with their previous offers as they anticipated lower feedstock costs later on.
One producer said it was sold out of material for July and the first half of August, with many of its customers still purchasing on a hand-to-mouth basis.
The producer said the Q3 business it had concluded so far was between €1,400-1,450/tonne FD NWE, adding that it was not prepared to offer below €1,400/tonne at present.
With demand in China expected to remain low, more imports of fatty alcohols are believed to be made available to the European market.
One buyer remains hopeful that it will be able to achieve mid-cut alcohols in the spot market at €1,300/tonne FD NWE, having secured some volumes for July at €1,370/tonne FD NWE.