24 October 2007 05:30 [Source: ICIS news]
By Jeremiah Chan
SINGAPORE (ICIS news)--Despite the domestic shortage in refined vegetable glycerine, Asian producers are finding it more profitable to export quantities to Europe due to higher prices there, producers and traders said on Wednesday.
Demand for Asian glycerine is picking up even more as tight supply in Europe partly on the back of spiralling feedstock vegetable oil prices has encouraged end-users to turn to producers in this region for their purchases.
What has become more interesting, however, is the sheer difference in prices between the Asia and ?xml:namespace>
He added that he wouldn’t be surprised if European spot prices hit €1,400/tonne ($1,996/tonne) FD (free delivered) NWE (northwest
Bulk vegetable refined glycerine sold in
“I can comfortably sell refined glycerine to the European market at $1,430/tonne FOB (free on board)
Buying ideas in
“It’s still very difficult to sell material in
An oleochemicals producer based in
“The Euro is much stronger than the US dollar now, so I wouldn’t be surprised if they [the Europeans] can pay high prices for imported cargoes,” she said.
Refined glycerine sold in drums was assessed at $1,250-1,300/tonne FOB SE (southeast)
Drummed material usually carries a $100-110/tonne premium over bulk cargoes.
However, prices in the region appeared to have reached a plateau as most other end users and traders in
“We have been able to pass a portion of the hike in prices over to our end-users so far,” the purchasing manager of an Asian downstream alkyd resin producer said, although she added that buying sentiment was expected to fade quickly if prices rose any further.
Until then, producers said they would continue to sell their cargoes to the highest bidder as long as arbitrage remains profitable.
“Why leave money on the table?” the marketing official of a glycerine producer based in
Major producers of glycerine in
($1 = €0.70)
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