19 September 2011 07:53 [Source: ICIS news]
By Lei Lei Wong
SINGAPORE (ICIS)--Refined glycerine prices in Asia look set to continue rising in the coming weeks after hitting a two-month high of $760-790/tonne (€555-577/tonne) on tight supply, with most producers in southeast Asia claiming to have sold out October cargoes, industry sources said on Monday.
Spot prices on a free on board (FOB) southeast (SE) ?xml:namespace>
Most producers are bullish and have firm offers at above $800/tonne FOB SE Asia.
“I foresee prices to remain [at] above $800/tonne FOB SE Asia or even $900/tonne FOB SE Asia in the next few months,” a producer said.
Another producer sold a cargo for end-November shipment at $910-920/tonne FOB SE Asia, with some others heard concluding December cargoes.
“The reason for the tight supply in southeast Asia is mainly due to the reduced output from the fatty acid and alcohol plants as most of the plants are not running at full capacity now,” a trader said.
Refined glycerine is a by-product in the manufacture of fatty acids and alcohols, which currently suffer from weak demand.
A third producer, which is based in Malaysia, cited reduced output from biodiesel plants that may see refined glycerine prices breaking the $1,000/tonne FOB SE Asia mark in the next few months.
Asia’s exports of biodiesel to
“As winter approaches, most biodiesel plants in the region [
Prices of crude glycerine coming from south America are also on the rise, tugging at refined glycerine prices.
“Few end-users are willing to pay the current high prices, however they may no longer have a choice when they run out of inventory,” a trader said.
Other market players, however, said a continuous price spike for refined glycerine may not materialise in the near term, as downstream demand in the important Chinese market remains poor.
Some buyers in
“The demand is not there, so the buyers are unwillingly to pay the premium prices quoted to them currently at almost $900/tonne CIF CMP,” a broker said.
Among the main end-users of glycerine in
($1 = €0.73)
Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections
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Asian Chemical Connections