04 October 2007 19:42 [Source: ICIS news]
“I have all my material placed through late December,” the trader said.
Other market sources confirmed that Asian importers cannot get more material into the US until late December/early January. Moreover, some said the quantities will be limited because Asia is also on tight supply.
Most glycerine suppliers had announced that they would seek substantial increases in the fourth quarter, ranging from 8 cents/lb ($176/tonne) to more than 20 cents/lb, depending on the type of product.
US glycerine prices subsequently jumped by 11 cents between mid September and October, as many buyers moved in early for fourth-quarter contract settlements to clamp volume requirements.
September vegetable glycerine contracts were assessed at 51-60 cents/lb by global chemical market intelligence service ICIS pricing. Tallow glycerine contracts for the same period were assessed by ICIS in a 46-51 cents/lb band.
The September assessments reflected an 8-11 cent/lb increase from August levels, but they were still under upward pressure, as some fourth-quarter contracts remained unsettled, sources said.
Major glycerine producers include Proctor & Gamble, Uniqema, Cognis, Chemtura and Dial.
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