20 April 2010 05:23 [Source: ICIS news]
SINGAPORE (ICIS news)--Prices of imported crude and refined glycerine in China are softening on the back of low demand and ample local inventories, sources said on Tuesday.Fuelled by abundant domestic supplies and lackluster demand due to availability of competitively priced local cargoes, prices of imported refined glycerine in China had been steadily decreasing in recent weeks from last month highs, according to global chemical market intelligence service ICIS pricing.
Imported glycerine was traded in the range of $640-680/tonne (€474-503/tonne) CFR (cost and freight) China on 14 April, compared with $650-710/tonne CFR China on 17 March, according to ICIS Pricing.
In addition, local material was traded in the range of yuan (CNY) 3,900-4,200/tonne ($571-615/tonne) EXW (ex-works), according to ICIS pricing.
The wide disparity of prices between domestic and imported material continued to fuel lackluster demand for imports, sources added.
Despite the tight supplies of crude glycerine and higher demand in other parts of Asia, buying interest for imported crude glycerine in China remained weak, sources said. This was due to ample local inventories and a wide spread between buy-sell sentiments in the Chinese market, they added.
Majority of bids remained at $240-280/tonne CIF (cost, insurance and freight) CMP (China Main Port) while offers were pegged at above $300/tonne CIF CMP levels. As there was no immediate need for fresh cargoes, buyers held off purchases until current stock levels were low, sources added.
Glycerine is a by-product of fatty acids and biodiesel production with palm oil as the feedstock. Downstream applications include use in the antifreeze, making of epichlorohydrin, gunpowder, cigarette and pharmaceutical/personal care industries.
($1 = €0.74/$1 = CNY6.83)
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