12 September 2012 23:59 [Source: ICIS news]
LONDON (ICIS)--European refined vegetable glycerine prices have increased for the second consecutive week because of tight supply, according to sources on Wednesday.
Spot European refined vegetable glycerine prices are at levels of €750-800/tonne ($962-1,026/tonne) FD (free delivered) NWE (northwest ?xml:namespace>
Crude glycerine is a by-product of biodiesel production, which is refined to make refined vegetable glycerine.
Availability of spot refined vegetable glycerine has become tight as a result of low levels of European biodiesel production, meaning there has been less crude glycerine available for refining.
Producers of refined vegetable glycerine say they are offering spot material at levels as high as €900/tonne FD NWE, and that little product is actually on offer.
However, buyers are unwilling to pay prices of this level and are opting to stay out of the spot market in the hope prices will soften going forwards.
“Although I am well-covered for product, I am intentionally out of the spot market and hope supply may ease by the time I need material for the fourth quarter,” one buyer said.
($1 = €0.78)
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