30 June 2010 23:59 [Source: ICIS news]
LONDON (ICIS news)--European third-quarter contract settlements for vegetable- and tallow-grade glycerine were agreed at a decrease on the back of an oversupply, market participants said on Wednesday.
Vegetable-grade contract prices were reported at €400-460/tonne ($488-561/tonne) FD (free delivered) NWE (northwest Europe) compared with second-quarter prices of €420-500/tonne FD NWE.
Tallow-grade contracts were assessed at €400-440/tonne FD NWE compared with €400-480/tonne FD NWE in the second quarter.
Buyers and sellers attributed the decrease to an oversupply caused by a reduction in buying from China.
One buyer reported that the export business of crude glycerine from Europe to China was not as strong as in the past.
The buyer expressed concerns that if China was not buying crude glycerine, there would be a surplus in Europe which could cause prices to decrease in the fourth quarter.
Industry participants commented that although prices were softer, demand remained steady.
Producers reported that with the summer season, glycerine producers would be reducing output of the product in southern Europe.
($1 = €0.82)
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