21 March 2013 03:47 [Source: ICIS news]
SINGAPORE (ICIS)--China’s crude glycerine prices rose for the fifth consecutive week on the back of tight supply for March and April-loading cargoes, market players said on Thursday.
The prices were assessed at $385-400/tonne (€296-308/tonne) CIF (cost, insurance & freight) CMP (China Main Ports) on 20 March, up by about 4.7% from 13 February, according to ICIS data.
Buyers who needed to replenish their inventories had no choice but to accept the higher prices, market players said.
Supply was limited as exports from Argentina, a major seller of crude glycerine in the Chinese market, remained low due to the country’s weak biodiesel performance, they added.
Supply is further tightened by reduced exports from Brazil, another key supplier for China’s crude glycerine, in March and April, sources said.
“We have been trading a lot in the domestic market to supply the growing demand. No March product [is] available, only April onwards,” said a Brazilian seller.
The high offers during the week have dampened buying interest and only those who needed to replenish their inventories were willing to purchase at such a premium price, China-based end-users said.
Key buyers of crude glycerine, glycerine refiners and epichlorohydrin (ECH) makers, were resistant to the price hikes as they have difficulty raising the prices of their own products.
In fact, ECH prices fell on the back of weak demand by $50/tonne at the low end of the range week on week to $1,500-1,600/tonne CFR China for the week ended 19 March. Prices of drummed refined glycerine were flat for the third consecutive week at $850-905/tonne CFR China.
($1 = €0.77)
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