19 July 2012 18:03 [Source: ICIS news]
HOUSTON (ICIS)--US refined glycerine contracts for the third quarter were largely settled this week in a mixed market where new tiers may be developing, buyers and sellers said on Thursday.
In a tug between the domestic suppliers and new importers in South America, third-quarter refined glycerine contracts for tallow-based glycerine were assessed at 40.50-48.50 cents/lb ($893-1,069/tonne, €732-877/tonne), up about 1.50 cents/lb from the previous assessment.
Vegetable-derived refined glycerine contracts for the third quarter were assessed at 42.00-49.00 cents/lb, moving up 0.50 cents/lb on the low side and unchanged from the previous assessment on the high end.
US refined glycerine producers and distributors were caught in competitive situations with South American imports during contract negotiations, sellers said.
As a result of the outbreak of sharply competitive prices available from the imports, fully certified USP glycerine forms the basis for many contract assessments.
Fully certified USP means that the producer has obtained all certification papers for the glycerine and the production plant facility. This certifying process typically increases the price of the glycerine because of the cost of certification.
Some imported material is fully certified with the USP protocols, and some is not. The material that is not certified may be of the exact same quality, but lacking the complete certification process pushes down the price.
One result of this tug between suppliers is that a technical-grade tier for glycerine is being discussed.
Refined glycerine producers in the US include Procter & Gamble, Vantage Oleochemical, Peter Cremer North America and Emery Oleochemical. Several of these are multinational.
Importers include Asian-based companies such as Wilmar and KLK and South American biodiesel groups whose material is largely handled by various trading companies.($1 = €0.82)
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