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Article: Lower supply, strengthening demand pressure castor oil and derivatives prices. (Markets: Oils, Fats & Waxes).(Statistical Data Included)
- Article from:
- Chemical Market Reporter
- Article date:
- March 18, 2002
- Author:
CopyrightCOPYRIGHT 2002 Schnell Publishing Company, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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THE US CASTOR OIL market is sensing a change in price direction after seeing crude castor oil prices bottoming out at a historically low level of $450 per ton f.o.b., India, last year. After a year of weak prices, producers and consumers of castor oil and castor oil derivatives are expecting upward price pressure in the next half of 2002. The high inventories from the last two years have slowly eased down, and demand is expected to surge as the economy strengthens. Current crude castor oil has traded steadily at $530 to $540 per ton for the last few weeks.
"We have been in an oversupplied situation for quite some time now," says one industry source. "Even though ...