20 September 2007 22:57 [Source: ICIS news]
HOUSTON (ICIS news)--US glycerine prices were continuing to move up, riding on the crest of supply issues, buy-side and distributor sources said on Thursday.
One buyer source confirmed taking a 30% increase for vegetable US pharmaceutical (USP) refined glycerine in a finalised fourth-quarter contract settlement.
A trader said his positions were already sold out to the end of October, with drummed kosher material sales finished at 70 cents/lb ($1,543/tonne) FOB (free on board) East coast this week.
Strong fourth-quarter increase announcements were made by major suppliers, with a Procter & Gamble initiative seeking 16 cent/lb hikes on vegetable and kosher material and 14 cents/lb on tallow.
Other suppliers announced 10 cent/lb increases on vegetable material and 5 cents/lb on tallow.
One supplier that did not announce increases in September confirmed on Thursday it would seek to raise its vegetable and kosher glycerine prices by 21 cents/lb and tallow-based material by 15 cents/lb, effective on 1 October.
September vegetable refined glycerine contract prices were assessed at 51-60 cents/lb this week, with a 46-51 cent/lb assessment on tallow, according to global chemical market intelligence service ICIS pricing.
Market sources throughout the US glycerine segment confirmed low inventories and buyer anxiety about steady supply to year-end.
The supply shortage was caused by several factors, especially large new pockets of demand stemming from alternative production methods in glycols, sellers and buyers said.The US is a net importer of glycerine. Major US producers include Procter & Gamble, Cognis Oleochemicals, Dial, Uniqema and Chemtura.
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