12 October 2011 23:59 [Source: ICIS news]
Vegetable glycerine contract prices for the quarter are assessed at €500-550/tonne FD (free delivered) NWE (northwest Europe), down €15-30/tonne from the third quarter, when values were €515-580/tonne FD NWE.
Meanwhile, European fourth-quarter tallow glycerine prices are assessed at €470-510/tonne FD NWE, a decrease of €15/tonne at the high end of the range and an increase of €10/tonne at the low end.
Despite a softening in prices, sources said that vegetable glycerine prices will remain firm and increase going into the first quarter because of additional demand from new applications, such as the production of epichlorohydrin (ECH).
Furthermore, it is expected that the increasing popularity of used-cooking-oil based biodiesel will lead to limited supply of vegetable glycerine, as the production process results in an unsuitable crude glycerine by-product.
While some said it is unlikely that tallow glycerine is available at the same levels as vegetable glycerine, others agree that the price spread between both vegetable and tallow glycerine is narrowing.
They attribute the diminishing price spread between the two grades to possible tight supply in the tallow market and lower vegetable oil prices.
($1 = €0.73)
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