Brazil's third quarter crude glycerine supply to Asia likely stable
21 June 2012 10:33 [Source: ICIS news]
SINGAPORE (ICIS)--?xml:namespace>Brazil’s crude glycerine supply to Asia is expected to remain largely stable in the third quarter, traders said on Thursday.
Nearly 770,000 cubic metres (cbms) of biodiesel was sold last week in a government-organised auction for the three months ending September, traders said.
Biodiesel production in Brazil, based on the third-quarter domestic demand, is expected to generate around 77,000 tonnes of byproduct crude glycerine during July to September, broadly unchanged from the second quarter, they said.
Typically, about 45-55% of the crude glycerine will be allocated for export, mainly to the key China market, they said.
“The results of the auction are in line with market expectations. There should be no significant impact on (crude glycerine) prices,” a Chinese trader said.
Crude glycerine demand in China has slowed down because of the lacklustre performance of the downstream refined glycerine sector, although import prices continued to be supported by the limited availability of cargoes from southeast Asia and Argentina.
Prices of crude glycerine in flexi-bags were at $345-370/tonne (€273-292/tonne) CIF China Main Port on 20 June, broadly unchanged from the previous week, according to ICIS data.
($1 = €0.79)By: Yeow Pei Lin
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