27 August 2012 06:35 [Source: ICIS news]
Argentinian biodiesel producers are likely to have less by-product crude glycerine to export after the country’s government raised taxes on biodiesel exports to 32% from 20% earlier this month, traders in
“Some biodiesel plants have stopped operations. More are likely to follow suit,” a trader said.
In addition to the export tax hike, the export-oriented biodiesel industry in
“Some Argentinian plants were already running at reduced rates because of the trade dispute. The export tax increase will make things even more difficult for the industry,” a trader said.
With the supply of Argentinian crude glycerine expected to fall, sellers in
“They have no inventory pressure and they are waiting for prices to go up further,” a broker said.
Spot prices of crude glycerine in flexi-bags have already risen by $12.50/tonne (€10/tonne) since mid-August to $325.50/tonne CIF (cost, insurance and freight)
Sellers said the availability of crude glycerine from biodiesel facilities in
They are also hoping for an improvement in the performance of downstream applications, like anti-freeze, to improve in the fourth quarter when the weather turns cold.
Glycerine-based epichlorohydrin (ECH) start-ups in
Some ECH producers import crude glycerine to refine into high-purity glycerine to be used as a feedstock.
Such end-users include Jiangsu Yangnong which is expected to start up its 30,000 tonne/year ECH plant at the end of the third quarter, although the project may face delays because of lacklustre performance in downstream epoxy resin sector, market players said.
($1 = €0.80)
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