29 June 2010 05:25 [Source: ICIS news]
SINGAPORE (ICIS news)--Refined glycerine prices in Asia are likely to stabilize at above $500/tonne (€405/tonne) levels next month, supported by firmer demand in the third quarter, market sources said on Tuesday.
Buyers were expected to replenish stocks this coming quarter for year-end requirement, they said.
Spot refined glycerine prices lost about 14% since end March to $530-580/tonne FOB (free on board) SE (southeast) ?xml:namespace>
“I think prices have more or less bottomed out and unlikely to drop further,” a trader said.
“Although demand had yet to improve significantly, I don’t think any producer would be willing to sell below $500/tonne FOB SE Asia,” said a Malaysian producer, adding that margins would disappear at lower prices.
Some market participants said that prices could still fall $10-20/tonne to $500-510/tonne FOB SE Asia before they stabilize.
Refined glycerine is a by-product of biodiesel, fatty acids and fatty alcohol production and is used in various industrial applications such as in making antifreeze, epichlorohydrin, gunpowder, cigarette, pharmaceutical and personal care products.
($1 = €0.81)
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