19 September 2013 11:12 [Source: ICIS news]
LONDON (ICIS)--European crude glycerine values have softened on improved supply, according to sources late on Wednesday.
Spot crude glycerine values were assessed at €275-360/tonne ($372-486/tonne) FD (free delivered) NWE (northwest Europe), down by €15/tonne at the high end of the ICIS range.
Supply of crude glycerine has continued to improve following higher biodiesel operating rates in Europe.
Crude glycerine is a by-product of the biodiesel production process.
“We have quantities available as we are producing more biodiesel than expected. There are not too many quantities available, though. Prices are no longer rising... [and] are decreasing, but not that much,” one producer said.
“Biodiesel producers have a good margin at the moment, so supply of glycerine is healthy,” another source said.
Furthermore, glycerine refiners have covered their needs and are not in the market to buy crude glycerine, contributing to improved market supply.
“Nobody has room to take any more crude. Crude needs to decrease to €250/tonne FD NWE before people are interested,” one source said.
“The biodiesel producers are doing well and refiners are well-covered, so there is some pressure on the prices,” another source added.
($1 = €0.74)
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