26 September 2013 11:11 [Source: ICIS news]
Spot crude glycerine values were assessed at €275-340/tonne ($372-459/tonne) FD (free delivered) NWE (northwest Europe).
Biodiesel production rates have improved as a result of better margins, according to sources, and refiners of crude glycerine have covered their needs.
Crude glycerine is a by-product of biodiesel production.
“There has been more biodiesel production – some people are really long on crude glycerine supply,” one source said.
“I’ve heard refiners have enough crude so they don’t need to buy extra,” another source said.
“[Crude glycerine] prices will not improve before the end of the year because of higher RME [rapeseed methyl ester] production in the fourth quarter. The diesel industry has a [biofuels] mandate to fill by the end of the year and I’ve heard they’re running behind. Because of the spread between diesel and biodiesel, they’re buying more,” the source added.
However, a supplier of methanol said that it had noticed biodiesel producers purchasing fewer volumes and believes this may result in tighter crude supply.
“I see biodiesel production going down on the basis that our methanol supply into the industry is dropping,” the source said.
“I think [crude glycerine] prices will firm in the coming weeks,” the source added.($1 = €0.74)
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