20 March 2013 22:48 [Source: ICIS news]
MEDELLIN, Colombia (ICIS)--Second-quarter contract pricing in the US refined glycerine market is likely to increase, since the market remains snug, sources said on Wednesday.
Negotiations for the second quarter have begun, and are expected to continue this week at the American Fuel & Petrochemical Manufacturers (AFPM) conference in San Antonio.
Sellers expect pricing on all grades to be higher by a few cents/lb for the next quarter because of the tight supply scenario. At least two sellers are said to be sold out into April.
Most refined glycerine contracts are presently done on a quarterly basis with a few shorter-term and longer-term contracts.
End-use segments in food and beverages, tobaccos, pet foods and industrial tiers are all said to be performing well, underpinning the snugness in the refined segment.
Vegetable refined glycerine, fully certified as USP by US agencies, is assessed at 44-49 cents/lb ($970-1,080/tonne, €757-843/tonne) FOB midwest for small to medium volumes.
Tallow-based refined glycerine contracts, on the same certification basis, are assessed at 42.00-48.50 cents/lb, same basis location and volume.
Pharmaceutical-grade refined glycerine are assessed at 66-73 cents/lb FOB midwest.
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 = €0.78)
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