AFPM ’12: Tech glycerine is making a difference - distributors

02 April 2012 23:22  [Source: ICIS news]

SAN ANTONIO, Texas (ICIS)--Technical-grade glycerine, a term often applied to non-USP (US Pharmacoepia) in the US domestic market, is making a difference during second-quarter glycerine contract discussions, a distributor said on Monday.

“It is out there, it is part of the market,” a distributor said about technical glycerine, referred to as tech-grade, while speaking on the sidelines of the International Petrochemical Conference (IPC).

Tech-grade is non-USP, and can be either vegetable- or tallow-derived refined glycerine.

USP-quality glycerine can be certified or not. If certified, the glycerine carries a higher price.

The tech-grade glycerine is dragging on the low end of the assessed tallow glycerine range because the material is often imported, with sellers offering competitive prices to gain market-share opportunities.

Tallow refined glycerine contracts were last assessed at 37-46 cents/lb ($816-1,014/tonne, €612-761/tonne).

Tech-grade is defying definition and muddling the price perspectives in the second-quarter contract negotiations because, while non-USP, it can be up tp 99.5% purity. That purity level competes with USP quality material for some applications and for buyers seeking price advantages.

“Off-colour makes a price difference,” one refined glycerine producer said.

Tech-grade glycerine is often slightly off-colour from water-white, falling just under colour specifications required for USP, the supplier added.

Domestic refined glycerine producers are trying to raise second-quarter tallow-derived contract prices that were dampened in the first quarter by tech-grade competitives.

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.

Tech-grade glycerine is often imported from South America, largely coming from biodiesel production in Argentina. US biodiesel production can also make the tech-grade material.

Hosted by the American Fuel & Petrochemical Manufacturers (AFPM), the IPC continues through Tuesday.

 

 

 


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

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