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Editor: Serena Seng, serena.seng@icis.com
NOTE: For full details on the criteria ICIS pricing uses in making these price assessments visit www.icispricing.com and click on “methodology”.
Price negotiations for forward month contracts between buyers in Europe and sellers in Asia continued in the Asian Palm Methyl Ester (PME) market week-on-week. Demand for PME was expected to pick up in the coming weeks due to the approaching summer season, market sources said.
Prices of PME rose $30-50/tonne at $860-900/tonne FOB SE Asia on the back of rising Crude Palm Oil (CPO) and Palm Olein values, reflecting buy-sell ideas heard in the week to Thursday.
Although there were offers heard at $910-920/tonne FOB SE Asia, majority of market participants said offers above $900/tonne FOB SE Asia were unlikely to attract any buying interest due to the availability of lower priced cargoes ex-tank Europe.
The spread between PME and other beanoil such as Soyabean Methyl Ester (SME) and Rapeseed Methyl Ester (RME) in Europe continued to be wide, rendering PME unattractive to local European buyers, sources said.
On the other hand, although trade remained subdued, buying activity had started to pick up notionally, regional traders said. Once Europe goes into Summer and biodiesel production in Asia resumes in full force in the coming weeks, the languid demand plaguing the Asian PME market will start to ease, traders added. Enquiries for forward month contracts had also started to pick up slightly, producers said.
The CPO March contract settled Malaysian Ringgit (M$)2,644 ($784) at noon on Thursday, up M$44 from the previous week. Similarly, the April benchmark was settled at M$2,643 ($784) up M$53/tonne from last week.
European front month ICE gasoil (GO) settled up $16.50/tonne at $646.50 on Wednesday week-on-week.
Rapeseed methyl ester (RME) values settled at $933-987/tonne FOB NWE, down $11-32/tonne FOB NWE from the previous week.
Soybean methyl ester (SME) values fell $11-21/tonne at $913-967/tonne CIF ARA T2 week-on-week.
Trade in the Asian spot refined glycerine market picked up slightly after the Lunar New Year festivities. Prices rose $20/tonne on the low end of the range to $600-620/tonne FOB SE Asia, reflecting firm transactions and buy-sell indications heard.
Feedstock
Refined, bleached and deodorised (RBD) palm olein March contract prices were located higher at $817.50/tonne FOB Malaysia week-on-week. Co-feedstock methanol spot prices were assessed lower by $10/tonne at $310/tonne CFR SE Asia from last week.
($1 = M$3.28)
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