05 October 2007 17:44 [Source: ICIS news]
HOUSTON (ICIS news)--Crude glycerine is gaining attention in the ?xml:namespace>
“Since refined glycerine supply is so short, some industrial buyers are looking at partially refined crude slightly better than 80%,” the source said.
Although glycerine refiners usually do not prefer to use some forms of crude glycerine due to residual salts that can clog equipment, new players in agriculture and manufacturing were firmly looking at the partially refined form, market participants said.
With low-quality crude glycerine priced at about 6-7 cents/lb and better quality crude fetching prices in the low teens at best, the comparison to refined glycerine price levels was attractive, potential buyers said.
September contracts for vegetable and tallow refined glycerine were respectively assessed at 51-60 cents/lb ($1,124-1,323/tonne) and 46-51 cents/lb delivered, according to global chemical market intelligence service ICIS pricing.
The substantial shortfall in the amount of refined glycerine of 97% purity and above resulted from a slowdown in imports that came on the back of low price levels, coupled with demand upticks in the US as well as Asia and Europe, according to many US glycerine sources.
The resulting scramble for refined glycerine came alongside expanding US demand for its use as a feedstock for new applications such as the manufacture of monopropylene glycol (MGP), sources said.
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