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)
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