11 January 2012 23:59 [Source: ICIS news]
LONDON (ICIS)--European first-quarter glycerine contract prices have increased by €25-50/tonne because supply is expected to become limited during the quarter, sources said on Wednesday.
European vegetable glycerine increased by €25/tonne ($32/tonne) to €525-575/tonne FD (free delivered) NWE (northwest ?xml:namespace>
Both producers and buyers confirmed increases, with demand from new applications such as epichlorohydrin production, for which refined vegetable glycerine is used as a feedstock, and the prevalence of used cooking oil methyl ester (UCOME) production both expected to put a strain on supplies going forward.
UCOME production yields lower quality crude glycerine which is unsuitable for refining, meaning less refined product is available.
Sources expect supply during the second quarter to become increasingly tight, with some producers saying that prices could reach €700/tonne FD NWE for refined vegetable glycerine.
($1 = €0.78)
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.
|ICIS news FREE TRIAL|
|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|