06 September 2011 08:48 [Source: ICIS news]
Correction: In the ICIS news story headlined "Asia refined glycerine prices to track rise in crude glycerine" dated 6 September 2011, please read in the sixth paragraph ... to $720-740/tonne FOB SE Asia ... instead of ... to $720-750/tonne FOB SE Asia ... A corrected story follows.
SINGAPORE (ICIS)--Asia's refined glycerine prices are set to rise further in the coming weeks, in line with firmer crude glycerine prices, regional producers said on Tuesday.Refined glycerine prices were assessed at $720-740/tonne (€511-525/tonne) FOB (free on board) southeast (SE) Asia on 6 September, unchanged from the previous week, ICIS data showed.
However, some buyers said the recent rise in refined glycerine prices was too steep and not reflective of the current demand.
The prices of refined glycerine have risen by $110-120/tonne to $720-740/tonne FOB SE Asia since early August, according to ICIS.
Many sellers were offering refined glycerine at a high of $850-880/tonne FOB SE Asia during the week ended 6 September because of tight supply, but buyers were unwilling to match those offers in view of the weak end-user demand and kept their bids at $720-740/tonne FOB SE Asia.
"Despite the supply shortages, demand is still weak and not many market [players] are buying huge volumes," a Chinese buyer said.
As a result, there was a wide buy-sell gap in the market, said players.
"The buy-sell standoff started three weeks ago and looks set to continue for at least another two to three weeks," said a Singapore-based trader.
Despite the standoff, most market players said they expect refined glycerine prices to rise in the coming weeks in line with those of crude glycerine.However, some players said crude glycerine prices may not rise as sharply as expected, as there is still some buyer resistance to the higher offers.
"Although crude glycerine demand is rising, I don't see prices moving up too sharply as buying interest is still weak," said a trader in China.
($1 = €0.71)
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