US refined glycerine prices stabilising

24 April 2008 16:56  [Source: ICIS news]

HOUSTON (ICIS news)--US refined glycerine prices were stabilising this week, buyers and traders said on Thursday.

The stabilising mode followed a spate of double-digit hikes since the third quarter of 2007 based upon short inventories, buyers and sellers said.

But supply/demand fundamentals were said to be moving toward balance due to refreshed import volumes from Europe and additional pounds entering the US commercial market from agro-groups such as biodiesel maker Cargill.

Refined glycerine April contract prices were assessed in a 90-110 cents/lb ($1,984-2,425/tonne or €1,250-1,528/tonne), spread for vegetable derived material, according to global chemical market intelligence service ICIS pricing. Tallow derived glycerine contracts were assessed at 75-85 cents/lb in April.

Vegetable contracts rose 5-10 cents from March levels, while tallow prices went up 5-6 cents over the same period, with supply/demand factors the driver on both spreads, according to market players.

These price levels contrasted with April 2007 contracts, which averaged 34 cents/lb for tallow material and 37.50 cents/lb for vegetable glycerine.

US glycerine producers include Procter & Gamble, Dial, Cognis Oleochemicals, Uniqema and Cargill among others. Buyers include numerous food and drug companies as well as technical and industrial groups such as Bayer, Dow Chemical, Croda, and Noveon. 

($1 = €0.63)

By: Judith Taylor
+1 713 525 2653

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