23 August 2012 11:17 [Source: ICIS news]
LONDON (ICIS)--European refined vegetable glycerine spot prices have increased on tight supply, according to ICIS data published on Thursday.
Spot refined vegetable glycerine values were assessed up by €60/tonne at €680–730/tonne ($850–913/tonne) FD (free delivered) NWE (northwest Europe).
Crude glycerine is a by-product of biodiesel production, which is refined into vegetable glycerine.
European biodiesel operating rates have been at low levels due to competition from imports and used cooking oil methyl ester. As a result, there has been less crude glycerine available for refining, leading supplies of refined vegetable glycerine to become tight.
Sources from the European glycerine market expect the tight conditions to continue for the foreseeable future.
European biodiesel production is not expected to increase significantly in the fourth quarter, as a number of participants have already fulfilled their blending mandates.
However, robust European prices are attracting refined vegetable imports from Asia, according to sources – and this could bring more balance to the market later in the fourth quarter.
($1 = €0.80)
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