US Q1 glycerine contracts pressured up on supply/demand

08 December 2011 00:24  [Source: ICIS news]

HOUSTON (ICIS)--US first-quarter refined glycerine contract prices will likely increase on supply-demand factors and rising price ideas from Asian importers, buyers and sellers said on Wednesday.

“Personal care, cosmetics and tobacco want the non-GMO [non-genetically modified] glycerine,” a major supplier said. “That means no soybean-derived glycerine, and that means rising prices."

The US is a net-importer of glycerine. Most of the non-GMO kosher quality product is brought in from Asia.

While no formal increase announcements have surfaced – a trend that has dominated in the US glycerine market for about 24 months – several suppliers confirmed that they are negotiating contracts for the first quarter and achieving higher prices.

Vegetable-based glycerine contracts ranged between 38–46 cents/lb ($838–1,014/tonne, €628–761/tonne) in the fourth quarter, with tallow-derived glycerine contracts assessed at 36–44 cents/lb.

Sources were discussing price increases of 2–3 cents/lb in both tiers. First-quarter contract negotiations began following the US Thanksgiving holiday, and are likely to continue past year-end.

US glycerine producers and refiners include Procter & Gamble, Vantage Oleochemical, Emery Oleochemicals and VVF. Cargill is an agriculture-based producer.
ADM said it would no longer offer USP-grade glycerine contracts beginning January in order to concentrate the material in production of its "green" propylene glycol (PG).

($1 = €0.75)

By: Judith Taylor
+1 713 525 2653

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index