06 February 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European crude glycerine buyers have been given some relief from record-high prices as a result of improved supply, sources said on Wednesday.
The ICIS crude glycerine range softened by €30/tonne on the top end and €20/tonne on the bottom to be assessed at €335-360/tonne ($456-490) FD (free delivered) NWE (northwest Europe).
ICIS publishes a wide crude glycerine range to incorporate lower-quality crude glycerine grades and also high-quality grades such as kosher non-genetically modified organism (GMO).
Kosher non-GMO crude glycerine was heard at €350-360/tonne FD NWE.
A trader said supplies of kosher non-GMO crude glycerine may continue to improve as a result of the European Commission’s latest ruling (28 January) that requires biodiesel imports from Argentina and Indonesia to be subject to customs registration.
The regulation means that if the Commission finds biodiesel from these nations was dumped in the EU, penalties can be imposed retroactively.
The trader said this ruling may prompt more European production of rapeseed methyl ester (RME), from which kosher non-GMO crude glycerine is a by-product.
However, the ruling could also tighten supplies on other crude glycerine grades.
Sources said that while the wider glycerine market is experiencing pockets of demand, large quantity orders have yet to be seen.
A source said some buyers have held off, with the expectation prices would ease toward the end of the first quarter.
A producer noted more enquiries and some increase in spot demand, but agreed larger purchases are not forthcoming.
($1 = €0.74)
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