06 March 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--Prices continued to soften in the European glycerine market this week; however buyers are still holding off, sources said on Wednesday.
Market sentiment on price decreases is mixed. Although sources are in agreement prices are coming down, by how much is under debate.
“I can’t put my finger on what price is marketable,” a producer said. “So many suppliers are throwing material out at prices you can’t even imagine.”
A trader added some suppliers are looking to move product quickly and are therefore offering lower prices, however these prices are not reflective of the wider spot market.
Prices for refined vegetable glycerine weakened by €10-20/tonne ($13-15/tonne) to €670-710/tonne FD (free-delivered) NWE (northwest Europe).
The producer said it is waiting for the refined glycerine customers to come back with some demand, which will help the market to stabilise again.
However, suppliers are feeling the price pressure as a result of building stocks and increased biodiesel production.
“On one hand buyers are still discovering what they need and I have the impression they are hoping prices might drop further,” the trader said.
“On the other hand [there are] huge stock amounts and the buyers not really covering huge amounts.”
Biodiesel production continues to improve in most regions, with sources saying the impact of the European Commission’s ruling to register biodiesel imports is helping to lift local capacity.
($1 = €0.77)
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