24 April 2008 05:42 [Source: ICIS news]
By Jeremiah Chan
SINGAPORE (ICIS news)--Asian refined glycerine values are softening due to comfortable supply and a spate of panic selling, producers and traders said on Thursday.
Refined glycerine prices were assessed at $1,680-1,750/tonne (€1,058-1,103/tonne) FOB (free on board) SE (southeast) ?xml:namespace>
“You can get glycerine very easily in
Despite sporadic offers still reported above $1,800/tonne FOB
Competitively priced refined cargoes from crude glycerine imports into the region weighed on prices, they explained.
Crude glycerine imports from biodiesel producers in south America and Europe to Asian refineries eased the tightness in supply, as less discerning end-users who previously made use of refined cargoes of 99.7% purity switched to readily available lower priced crude material.
The abundance of glycerine refining capacities in the region also encouraged the influx of crude glycerine.
Several biodiesel plants in the region - hard hit by sharp rises in feedstock vegetable oil values - stopped production to concentrate solely on crude glycerine refining.
Offers of crude glycerine with 80% glycerol content from south America were heard at around $800/tonne CFR (cost and freight)
Most producers pointed out that sellers and traders who had earlier stockpiled cargoes during glycerine’s dramatic price increase over the past year found themselves saddled with material.
Eager to lock in profits before prices fell further, they dumped their cargoes in the market, resulting in a supply overhang in the region.
Major glycerine producers in
($1 = €0.63)
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