European spot glycerine prices soften

13 February 2013 23:59  [Source: ICIS news]

LONDON (ICIS)--Prices in the European spot glycerine market have eased across the board this week as a result of better biodiesel supply, sources said on Wednesday.

Tallow glycerine prices eased by €50/tonne ($67/tonne) to €660-700/tonne FD (free-delivered) NWE (northwest Europe).

Refined glycerine and crude glycerine grades have also eased by varying amounts on both a UK and NWE FD basis.

A buyer of tallow glycerine said supply had improved and prices had eased accordingly.

“The market is a lot more positive about price development. There are signs of much lower prices ahead,” the buyer said.

Sources reported a well-balanced market with reasonable trade levels for small parcels of glycerine. However, large purchases have yet to be seen, with many holding off in the belief that prices will continue to lower.

There is some disagreement between buyers and sellers over price levels going forward. While all agree prices are softening to some extent, there are differing ideas about supply levels.

A buyer said European biodiesel capacity is increasing as a result of the European Commission’s decision to register biodiesel from Argentina and Indonesia.

Conversely, a glycerine producer said few biodiesel tenders have been seen and refined glycerine supply has not improved significantly.

Shipping sources noted glycerine moving from the US to Europe. A source said the unusual trade flow was prompted by the US government’s reintroduction of the $1/gallon biodiesel tax incentive, which has increased the production of biodiesel and glycerine.

($1 = €0.74)

By: Kate Wilcock
+44 208 652 3214

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