15 July 2010 06:19 [Source: ICIS news]
SINGAPORE (ICIS news)--Refined glycerine prices in Asia have dropped almost $50-70/tonne (€40-55/tonne) this week as languid demand and poor market conditions have sparked off a price war among producers, a trader said on Thursday.
A key Indonesian producer had lowered offers of refined glycerine early this week to $480/tonne FOB ?xml:namespace>
As competition heated up, a few other key producers in the region lowered their offers to around $470-480/tonne FOB
These figures were way below the market price of around $520-550/tonne FOB SE (southeast) Asia as assessed by ICIS pricing on 14 July.
“Wow, that’s crazy,” an Indonesian producer said after hearing about the sudden drop in glycerine prices while a Singapore-based trader asked; "Where's the margin?"
Other producers in the region however said that the price competition was likely to be short lived and that glycerine values would rise in the near future.
“I am confident that this will not go on for long, prices of refined glycerine will rise in the next few weeks,” an Indian producer said.
Demand would pick up soon because buyers were expected to replenish stocks in the next quarter for their year-end requirements, traders said.
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 industries.
($1 = €0.79)
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