FCMP
Stiff international competition
Europe
Buyers are in the driving seat
The EU FCMP market remains oversupplied. There certainly is appetite from producers to make FCMP but the buyside is quite well covered for Q1 and parts of Q2. At the current price of EUR 3000 ex works the world market cannot offer much relief as the prices are dropping in Latin America and New Zealand at almost similar speed.
Americas
Market outlook is quite bearish
Prices in South America have dropped to USD 3300 FOB and downward pressure continues to build. Local demand remains weak and competition from the EU and New Zealand is mounting. Due to diminishing EU fat prices, European origins are competitive in the world market again and New Zealand FCMP prices are also coming down. The price drop since last month has been considerable but it does not feel like the market has seen the worst yet.
Asia-Pacific
Good supply allows buyers to lean back
At the early December GDT session China played a dominant role and as the quantities on offer were a little modest the price held its ground a little better than expected. Outside of GDT there is significant supply that is still looking for a home. A welcome destination for this is food aid demand from Indonesia after the floods. Looking forward the strong season in New Zealand will continue to keep this origin well sorted to cover the regional and international demand. The volumes on offer on the GDT sessions will gradually decline and although this may provide some price stabilizing momentum, the downward price pressure is expected to be stronger.
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