12 September 2013 11:10 [Source: ICIS news]
LONDON (ICIS)--Spot European refined vegetable glycerine and crude glycerine prices have decreased by €10/tonne, according to ICIS data late on Wednesday.
Both spot refined vegetable glycerine and crude glycerine prices were assessed lower by €10/tonne at the high end of their ranges to €640-700/tonne ($853-933/tonne) FD (free delivered) NWE (northwest Europe) and €275-375/tonne FD NWE, respectively.
Sources said prices have decreased on improved supply and declining demand.
“There has been more spot material offered in the market by biodiesel operators, as the crisis in Syria has meant gasoil values have increased while vegetable oil prices have remained weak, making biodiesel production attractive,” one refiner said.
“All the major companies were in the market to buy biodiesel. The biodiesel operators were then trying to place their glycerine in the market to lock margins in,” the source added.
Crude glycerine is a by-product of biodiesel production, and can be refined to higher levels of purity.
“The demand is not really there at the moment. Prices for crude are down a little bit and I’m not seeing any Q4 enquiries,” another source said.
“I expect Q4 demand to kick-in soon and stabilise things – everybody is arriving back in the market late from their summer holidays, so Q4 business has been delayed,” the source added.
($1 = €0.75)
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