US Q4 glycerine contracts roll over

13 October 2011 16:14  [Source: ICIS news]

HOUSTON (ICIS)--Fourth-quarter US refined glycerine contract negotiations were widely completed at a rollover from the third quarter, buyers and sellers said on Thursday.

Vegetable-based refined glycerine contracts were assessed at 38-46 cents/lb ($838-1,014/tonne, €603-730/tonne) FOB (free on board) midwest.

Tallow-based contracts were assessed at 36-44 cents/lb FOB midwest.

Firming price sentiment based upon increased demand in industrial fluid applications, such as recreational vehicle oils, plus the upcoming January exit of Archer Daniels Midland (ADM) as a refined glycerine supplier, were drivers for the rollover, sources said.

ADM said it would no longer offer USP-grade glycerine contracts beginning January 2012 in order to concentrate the material in production of its "green" propylene glycol (PG).

ADM’s  100,000 tonne/year PG plant facility is located in Decatur, Illinois.

Other US glycerine producers and refiners include Procter & Gamble, Vantage Oleochemical, Emery Oleochemicals and VVF. Cargill is an agriculture-based producer.

($1 = €0.72)

By: Judith Taylor
+1 713 525 2653

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