26 July 2007 07:49 [Source: ICIS news]
Refined glycerine sold in drums was traded at $930-970/tonne FOB (free on board) southeast Asia (SE Asia) this week, up $30/tonne from the previous week, according to global chemical intelligence service ICIS pricing.
A producer based in Malaysia said he managed to sell spot material to buyers desperate for cargoes in the Middle East and India at $1,000/tonne FOB Malaysia for August lifting last week.
"There is no price ceiling for glycerine, after all, I have sold it at $1,500/tonne [10 years ago]," he said, referring to price levels last seen in the mid 1990s.
Despite the high prices, glycerine was still sold at a discount to feedstock prices which have surged over the past few months, he added.
Other market sources disagreed that prices have breached the $1,000/tonne FOB SE Asia mark at present, adding that the cargo was not reflective of prevailing buying sentiment.
However, the general consensus was that prices would continue to rise until the supply tightness is alleviated by the return of biodiesel production in the region.
"The supply [of glycerine] is still tight, and we are receiving many enquiries for the product," Ng Chee Leong, marketing manager of Marubeni Chemical Asia Pacific said.
Many glycerine consumers in the region were planning how to handle the shortage of the product, he added.
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