10 April 2013 23:29 [Source: ICIS news]
MEDELLIN, Colombia (ICIS)--Q2 US refined vegetable contract spreads were assessed higher, while tallow glycerine contract ranges were assessed wider amid tightening supply.
Q2 tallow contract ranges, fully certified as USP by US agencies, were assessed wider at 42-50.50 cents/lb ($926-1,113/tonne, €704-846/tonne) (free on board) FOB Midwest for small to medium volumes.
Prices were pooling in the low 40s cents/lb FOB ?xml:namespace>
The wider range reflects the upward movement in the market, as many sellers were able to push through Q2 increases of 2-3 cents/lb and some even higher at an increase of 5 cents/lb for the quarter.
Multiple sellers said the presence of product out of non-certified plants is pulling down on the low end of the tallow range.
Vegetable refined glycerine, on the same certification basis, is assessed in the second quarter at 46.00-51.00 cents/lb, same basis location and volume.
Multiple sellers are said to be sold out on bulk product, with at least one on order control and not taking any new business for the second quarter. However, there is a limited amount of drummed product available.
Pharmaceutical-grade refined glycerine was assessed at 70.00-77.00 cents/lb FOB
The snugness in the overall market is being attributed to numerous factors.
Asia is said to have cut back on amounts of product shipped, as biodiesel production out of
Meanwhile, domestic demand for refined glycerine in the
The US refined market could see a drop in pricing at the end of May and into June, as the agriculture-use buyers leave the market and vessels on the water are expected to arrive, according to a trader.
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 = €0.76)
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