06 July 2011 23:59 [Source: ICIS news]
LONDON (ICIS)--Third-quarter European glycerine contract prices have decreased by up to €170/tonne ($246/tonne) on improved supply, sources said on Wednesday.
Vegetable glycerine contract prices for the quarter are assessed at €515-580/tonne FD (free delivered) NWE (northwest Europe), down €105-120/tonne from the second quarter when values were in a range of €635-685/tonne FD NWE.
UK vegetable glycerine prices are also assessed lower at £480-545/tonne FD UK, down £55-70/tonne from the previous settlement of £550-600/tonne FD UK.
European third-quarter tallow glycerine prices are assessed at €460-525/tonne FD NWE, a decrease of €105-130/tonne.
UK third-quarter contract prices for tallow glycerine are assessed at £430-495/tonne FD UK, a drop of £55-70/tonne.
Sources quoted very wide ranges for both vegetable and tallow glycerine contract settlements, with many attributing this to the fact that supply had increased gradually towards the end of the second quarter.
Supply is thought to have improved because increased amounts of crude glycerine are available in the European market.
Sources say this is due to higher rates of biodiesel production in countries such as Germany, as crude glycerine is a waste product of biodiesel production, and a steady inflow of imports from Asia due to low demand in the region.
($1 = €0.69, €1 = £0.90)
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