US crude glycerine supply low due to biodiesel

18 March 2008 22:05  [Source: ICIS news]

HOUSTON (ICIS news)--US crude glycerine supply is low due to faltering biodiesel production, traders and buyers said on Tuesday.

“It’s scarce because of the biodiesel plants shutting down,” one seller said. 

Exporters said 19-20 cents/lb ($419-441/tonne or €268-282/tonne) was representative for 80% domestic crude glycerine. Crude glycerine refiners put the range at this same spread, and agreed that the floundering biodiesel segment was the underlying reason for crimped supply.

Crude glycerine buyers said levels discussed in the low 30 cents/lb were only cropping up in a few selected situations and were not representative of the broader market price.

Top purity 80% anhydrous crude glycerine with low methanol salts sold this week at 30 cents/lb FOB (free on board) in the midwest, according to sellers.

Crude glycerine is a co-product of biodiesel production, as well as fatty acid production and several soap-making processes.

Suppliers of crude glycerine include most companies involved in these industries, such as Peter Cremer in biodiesel, Uniqema in fatty acids, and Dial in the soap-making segment. 

($1 = €0.64)

Bookmark Simon Robinson’s Big Biofuels Blog for some independent thinking on biofuels

 

By: Judith Taylor
+1 713 525 2653

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