05 February 2009 07:06 [Source: ICIS news]
SINGAPORE (ICIS news)--Refined glycerine spot values in Asia have been rising after the Chinese lunar new year holidays, with further increases possible in the coming weeks due to tight supply, market sources said on Thursday.Prices were assessed at $550-600/tonne (€429-468/tonne) FOB (free on board) SE Asia for drummed parcels during the week to Wednesday, according to global chemicals intelligence service, ICIS pricing.
"Yesterday, I received an offer at $600/tonne FOB Malaysia, and today, the seller tells me that his new offer is $650/tonne FOB," an oleochemical trader in Hong Kong said, adding that his latest procurement of cargoes last week was at around $550/tonne FOB SE Asia.
While no cargoes had been procured, he said most sellers were adamant on the price hikes amid reduced production at most oleochemical, biodiesel and soap production facilities.
"There is no longer any urgency to sell our glycerine cargoes," a major regional seller said, citing slackening demand for fatty acids that has been keeping production rates and inventory levels at most production facilities low.
One fatty alcohol producer, which offered around $700/tonne FOB SE Asia also, added that it was withholding spot market offers as it anticipates higher numbers.
"We will wait for prices to go up further and if buyers are desperate they will have no choice but to pay a premium for our material," he said.
($1 = €0.78)
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