02 March 2010 07:41 [Source: ICIS news]
SINGAPORE (ICIS news)--Asian spot refined glycerine (RG) prices kicked off on a strong note after the Lunar New Year festivities rising by $20-30/tonne (€15-22/tonne) on the back of tight supply, market participants said on Tuesday.
Stronger buying sentiments on the back of tighter market supplies fuelled the recent hikes in RG prices, a regional trader said.
South America, a key supplier of crude glycerine (CG) to the region was reported to be short on material for Q1 and the tighter supplies in the market was putting upward pressure on March RG prices, the trader added.
Prices of RG rose $20-30/tonne to $580-620/tonne FOB (free on board) SE (southeast) Asia on 24 February, according to ICIS pricing.
Tightening supplies on the back of reduced inventories were likely to fuel further price increase of $10-30/tonne to $630-660/tonne FOB SE Asia levels in the coming weeks, producers added.
Chinese demand for RG continued to be lacklustre as local cargoes were available at competitive prices, market sources said.
Buying activity was thin post Lunar New Year festivities as majority of the buyers stayed on the side lines in anticipation of further price hikes of imported material. Spot prices of RG were up $20-30/tonne to $600-650/tonne CFR China on 24 February, according to ICIS pricing.
CG prices remained steady at $240-260/tonne CIF (cost, insurance and freight) China Main Port (CMP) from pre Lunar New Year levels due to languid local demand and availability of local inventories, market sources said.
However, such weak demand was likely to be short-lived as domestic supplies of CG were anticipated to be exhausted by end of March, sources added.
($1 = €0.74)
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