China crude glycerine August prices to remain stable

26 July 2011 07:05  [Source: ICIS news]

SINGAPORE (ICIS)--China's prices of crude glycerine are likely to remain stable in August as supply and demand are expected to increase in the coming weeks, market players said on Tuesday.

Supply of crude glycerine from South America, a key export region, is expected to rise in the coming weeks from an increase in biodiesel activity, a China-based crude glycerine buyer said.

The increase in supply is expected to keep prices soft, most buyers said.

Prices are likely to remain stable at the current price levels of $260-270/tonne (€182-189/tonne) CIF (cost, insurance & freight) CMP (China Main Port), a second Chinese buyer added.

However, not all market players surveyed were in agreement that crude glycerine prices will remain stable.

Some participants were of the opinion that despite the increasing supply, the spike in demand for crude glycerine from Europe is likely to support higher prices in the coming weeks.

“Prices will rise by at least $10-20/tonne as demand from Europe is still firm. Even with increased supply, consumption is still high,” a regional trader said.

Prices of crude glycerine were assessed as $260-270/tonne CIF CMP on Tuesday, unchanged for the month of July, according to ICIS data.

($1 = €0.70)

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By: Serena Seng

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