06 April 2011 21:54 [Source: ICIS news]
HOUSTON (ICIS)--US refined glycerine second-quarter contracts rose because of tight supply and strong demand, buyers and sellers said on Wednesday.
“Supply is still tight and demand is good,” one distributor said.
Vegetable-based refined glycerine second-quarter contracts were assessed at 38-47 cents/lb ($838-1,036/tonne; €587-725/tonne), up about 2 cents/lb from the previous assessment.
Tallow-based glycerine contracts were assessed at 36-45 cents/lb, matching about the same upward pace as vegetable-based material.
Early expectations were that the second-quarter contracts were likely to roll over from the first quarter because some buyers anticipated that the start-up of the US biodiesel industry on the reinstatement of the federal tax credit would flood the market with crude glycerine.
However, biodiesel plant starts struggled in the first quarter and continued to grapple with re-start activity going into the second quarter.
The combination of a slow start to biodiesel, crimping crude supply and increasing demand for refined glycerine in several end-uses firmed price sentiment for the second quarter.
Sellers did not make formal announcements, choosing to move mostly on an account-by-account basis to achieve price increases.
Glycerine is used in foods, cosmetics and household cleaners.
US glycerine producers and refiners include Procter & Gamble, Vantage Oleochemical, Dial and Emery Oleochemicals. Agriculture-based producers and refiners include Archer Daniels Midland (ADM) and Cargill.
($1 = €0.70)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections