02 April 2012 22:43 [Source: ICIS news]
SAN ANTONIO, Texas (ICIS)--US refined glycerine second-quarter contracts are nearing completion, as many oleochemical buyers and sellers worked on Monday to finalise business on the sidelines of the International Petrochemical Conference (IPC).
“Negotiations are still going on, but a lot of business has been completed,” one glycerine buyer said.
Several suppliers were seeking increases, with targets to raise vegetable-based and tallow-derived refined glycerine by 1-4 cents/lb ($22-88/tonne, €17-66/tonne), depending upon the producer.
Formal price announcements are no longer issued in the US refined glycerine market, a situation that replaced traditional announcement procedures several years ago as leading producers such as Procter & Gamble (P&G) chose to conduct price negotiations on an account-by-account basis.
Supply/demand factors are widely balanced in the refined glycerine sector. However, emerging end-use segments such as the recreational vehicle (RV) fluids are inceasing overall consumption, creating firm price sentiment.
Sources said up to 20m lbs of additional consumption opened during 2011 in the RV fluid segment.
US vegetable-based refined glycerine contracts were last assessed at 41-48 cents/lb, with tallow-derived at 37-46 cents/lb, FOB midwest.
US glycerine producers include P&G, Emery Oleochemical, Vantage Oleochemical, Cargill, Archer Daniels Midland (ADM), Peter Cremer North America, Twin Rivers Technologies (TRT) and VVF.
Hosted by the American Fuel & Petrochemical Manufacturers (AFPM), the IPC continues through Tuesday.
($1 = €0.75)
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