The DC market is currently extremely firm due to the following factors:
- There has been a typhoon (typhoon “Kammuri”) in the Philippines causing major collateral damage and Philippine producers have withdrawn from the market.
- The price of coconut oil has breached the $ 1000/ mt mark and consequently raw material coconut is being diverted to oils and speciality (eg. Coconut milk) and away from DC.
- One of the major Indonesian exporters has gone down and have left significant contracts open to be filled from elsewhere, particularly in Europe and UK.
Philippines producers are currently not quoting and are advising that they have sold out for the first quarter.
Indonesian producers are quoting limited offers at prices in excess of $ 1800 (say £ 1385 or € 1635 per mt on C&F European port basis)
Sri Lankan producers are quoting in excess of $ 1900 ( say £ 1465 or € 1725 per mt on C&F European port basis) and are mostly sold out to the middle east.
We do not know which way the market will go in the next few months and would recover that buyers take short term cover.