US crude glycerine supply tight – trader

30 October 2007 21:18  [Source: ICIS news]

HOUSTON (ICIS news)--Crude glycerine supply has tightened amid throttled biodiesel production rates and increased demand, a trader said on Tuesday.

The trader said US biodiesel production was now running just slightly over 20% of capacity, as producers’ margins have disappeared amid high soybean oil and methanol feedstock costs.

As a 10:1 co-product of biodiesel production, crude glycerine was sitting in storage tanks last year, and biofuel producers sought to sell the material at 4-6 cents/lb FOB (free on board) the source said.

“I don’t think you can find much of it around for 4-6 cents/lb at this time,” the trader said.

Prices for crude glycerine were more likely to be in the 9-10 cents/lb range at present, “if you can find it,” the source said.

Crude glycerine can be obtained from fatty acid production and from soap-making as well as from biodiesel production. However, refined material from these sectors is already handled by the major glycerine producers and does not generally co-mingle within the commercial market with crude glycerine from biodiesel.

US fatty acid producers and soap-makers include Procter & Gamble, Cognis, Chemtura, Twin Rivers, and Dial. US biodiesel producers include Peter Cremer, World Energy, and numerous others.

By: Judith Taylor
+1 713 525 2653

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