13 January 2010 23:59 [Source: ICIS news]
LONDON (ICIS news)--European first-quarter refined vegetable and tallow glycerine contract settlements were agreed up to €10/tonne ($14/tonne) higher than fourth-quarter 2009 prices due to firm crude glycerine demand, buyers and sellers said on Wednesday.
Prices were reported at €300-350/tonne FD (free delivered) NWE (northwest ?xml:namespace>
Tallow material was settled at levels of €270-320/tonne FD NWE, sources said.
Vegetable material was assessed at £270-320/tonne FD
Crude glycerine demand had picked up in strength throughout the fourth quarter of 2009 as a result of sustained interest from agricultural feed producers, sources said. As a result, refiners had no choice but to increase their prices just to avoid making a loss in production, sources added.
Sources confirmed that demand for refined product was firming slowly, with most interest coming from the cosmetics industry.
With most glycerine manufactured as a bi-product of bio-diesel production, the availability for the material continued to be plentiful.
Some buyers believed that the price recovery, dependent on the strength of crude glycerine demand, remained fragile, with many contracts settled already on a half-yearly basis.
Uses for glycerine include adhesives, paints and resins as well as toiletries, food emulsifiers and cosmetics.
($1 = €0.69/€1 = £0.90)
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