13 March 2013 17:35 [Source: ICIS news]
MEDELLIN, Colombia (ICIS) --US refined vegetable and tallow glycerine contract spreads for March were assessed at a rollover on Wednesday, given the predominance of quarterly contracts.
Most refined glycerine contracts are done on a quarterly basis, although there are a few shorter- and longer-term contracts.
Vegetable refined glycerine, fully certified as USP by US agencies, is assessed unchanged at 44-49 cents/lb ($970-1,080/tonne, €747-832/tonne) FOB Midwest for small to medium volumes.
Tallow-based refined glycerine contracts, on the same certification basis, are assessed steady at 42.0-48.5 cents/lb, same basis, location and volume.
The market remains balanced to snug in mid March.
Negotiations for second-quarter pricing are starting, but no clear price direction has emerged yet.
Sellers expect pricing on all grades to be higher for the next quarter because of snug supply, but all eyes remain focused on the Asian market.
Higher pricing in Asia will give sellers in the US more leverage to push second-quarter contract pricing higher.
Refined glycerine suppliers no longer announce price changes, preferring to negotiate on an account-by-account basis.
US refined glycerine suppliers include Procter & Gamble, Vantage Oleochemical, Emery Oleochemical, Twin Rivers Technology and Peter Cremer North America.
Major importers include Wilmar, Acme-Hardesty and several trading groups.
($1 = €0.77)
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