Episode 1438: PODCAST: Asia oleochemicals rise amid Mideast conflict, despite weak buying

SINGAPORE (ICIS)--Although upstream crude palm oil (CPO) and palm kernel oil (PKO) costs have risen in Asia, oleochemicals buyers are adopting a cautious stance, having largely stocked up prior to the Chinese New Year in mid-February, and are not under pressure to lock in near term shipments.

The overlying sentiment is one where the oleochemicals prices will be under upward pressure regardless of whether demand is strong enough to support the price hikes, given the compressed margins from escalating upstream costs and spike in freight costs.

In this podcast, ICIS senior editor Helen Yan breaks down the impact of the Iran war and escalating military conflict in the Middle East on the Asian oleochemicals markets.

• Upstream CPO, PKO prices have risen amid the escalating tensions in the Middle East
• Glycerine, fatty alcohols mid-cuts C12-14 spot prices revised up on higher upstream CPO, PKO costs
• Players are monitoring the volatile situation, with buyers largely adopting a prudent stance