Asia refined glycerine may stabilize in July on firmer demand

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) Asia last week, based on ICIS data.

“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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By: Serena Seng

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