20 October 2009 20:49 [Source: ICIS news]
BERLIN (ICIS news)--Pricing and demand in the glycerine market will remain volatile during the next few years with peaks and troughs along the way, a large producer said on Tuesday.
The year 2010 “is set to be a promising year as the market improves from the record low prices we have at present,” the source said at the 7th ICIS World Oleochemicals conference.
Croda marketing manager Vincent Bogaart said prices would increase in the near future as glycerine stock levels in the US and Europe are low “There will also be less of a price differential between tallow and vegetable grade material as there will be less tallow on the market,” he added.
“Biodiesel plants produce vegetable-grade glycerine as a by-product and as biodiesel is the main driver of the market the two grades will be virtually the same price in the future,” Bogaart said.
Bogaart said he expected new biodiesel plants to come on line in the future whereby glycerine would no longer be produced as a by-product.
However, other sources stated that this was wishful thinking by producers and that the overcapacity in the glycerine market was set to stay.
“It is true that pricing will fluctuate in the coming years but glycerine prices will never recover to levels around €1,000/tonne [$1,490/tonne] again due to availability,” one buyer said.
($1 = €0.67)
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