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.
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