18 June 2009 11:59 [Source: ICIS news]
XIAMEN (ICIS news)--Glycerine's pricing trend in Asia will largely depend on the future growth of biodiesel production, an official from Solvay Biochemicals Thailand said on the sidelines of the 2009 Epoxy Resins & Raw Materials forum on Thursday.
Biodiesel production would have a direct and immediate impact on glycerine supply, with one unit of glycerine produced as a by-product of every 10 units of biodiesel manufactured, said Hellen Pham, regional sales and marketing manager of the company.
"Over 50% of the world’s glycerine supply is from biodiesel production," Pham said, pointing out that regional governments would have to support the use of biodiesel through the use of compulsory mandates in applications like energy and transportation.
"Glycerine prices have been extremely volatile, coming down to almost a quarter of the heights in prices seen in 2008," Pham said.
Refined glycerine prices were assessed at $580-630/tonne (€418-454/tonne) FOB (free on board) SE (southeast) Asia in drums during the week ended 17 June, according to global chemical market intelligence service ICIS pricing.
Solvay Biochemicals is in the process of constructing a 100,000 tonne/year epichlorohydrin (ECH) production facility in Thailand, which will require up to 110,000 tonnes/year of refined glycerine. The firm plans to complete the construction in the second quarter of 2011.
The three-day 2009 Epoxy Resins & Raw Materials forum being held in Xiamen, Fujian province, China, will end on 19 June.
($1 = €0.72)
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