Europe Q4 glycerine agreed down on weak demand, long market

30 September 2009 23:59  [Source: ICIS news]

LONDON (ICIS news)--European fourth-quarter refined vegetable and tallow glycerine contract settlements were agreed up to €100/tonne ($145/tonne) lower than third-quarter prices due to weak demand and long market conditions, buyers and sellers said on Wednesday.

Prices were reported at €260-310/tonne FD (free delivered) NWE (northwest Europe) for tallow product, down €100/tonne on the bottom end.

Vegetable-grade material was settled at levels of €300-340/tonne FD NWE, sources said.

In the UK, fourth-quarter contract prices were moved down in line with northwest European contract levels, as tallow grade was at £240-280/tonne FD UK. This was down £80/tonne on the top end of the range, according to global chemical market intelligence service ICIS pricing.

Vegetable material was assessed at £270-310/tonne FD UK, down £90/tonne at the bottom end of the range.

Sources agreed that demand was poor and that the market was long, which was reflected by the falling prices.

There was a lot of material available and while some technical grades had seen some price growth over recent weeks the glycerine market as a whole was very weak, one producer said. 

Uses for glycerine include adhesives, paints and resins as well as toiletries, food emulsifiers and cosmetics.

($1 = €0.69/$1 = £0.63)

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By: Dan Horlock
44 20 8652 3214

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