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)
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