21 June 2007 07:59 [Source: ICIS news]
SINGAPORE (ICIS news)--Refined glycerine spot prices surged to $800-850/tonne FOB (free on board) southeast Asia on Wednesday, more than $200/tonne from early May, on tight supply and strong demand, traders and producers said on Thursday.
Supply of crude glycerine has been tight on soaring crude palm oil prices, they added.
High feedstock costs forced biodiesel producers to cut production and this affected the output of by-product crude glycerine.
Demand for glycerine was firm especially in China, where the growth in the pharmaceutical and healthcare industries was booming, a regional distributor said.
An additional factor that was boosting glycerine demand was the advent of green glycerine-to-epichlorohydrin (ECH) plants, he added.
More ECH plants are using glycerine instead of propylene as a feedstock.
Major glycerine producers in the region include IOI Oleochemical, Palm Oleo and Natural Oleochemicals.
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