Glycerine

Glycerine has more than 1,500 end-uses. Pharmaceuticals, toothpaste, and cosmetics account for around 28%; tobacco 15%; foods 13 %; and polyether polyols for urethanes 11%. The remainder is used for alkyd resins, cellophanes, explosives and other miscellaneous uses throughout industry.

There are three basic types of glycerine, based upon derivation – tallow-based, vegetable-based and synthetic. Crude Glycerine is at least 80% pure and is almost always refined to further points of purity up to 99%

Lower grades of tallow-based glycerine are usually designated for polyols and alkyd resins markets, while higher grades – with purities up to 95.5% and 99%  pure – compete with vegetable and synthetic glycerine. In Europe and the US, vegetable-derived glycerine products for food, cosmetics, and toothpaste uses are popular . The US is the largest tallow-based market in the world.

Vegetable glycerine is derived from natural oils such as coconut, palm kernel oil and palm stearin.

Synthetic glycerine is made by only one producer, Dow Chemical, and is not regarded as influencing the  wider glycerine market. Therefore, it is not considered in the pricing assessments. The synthetic product is generally preferred for certain drug and pharmaceutical applications.

 

ICIS pricing quotes Glycerine in Europe, Asia-Pacific and the US Gulf.

 

Frequency:

Published weekly on Wednesdays

 

Glycerine (Europe)

Weekly Price Assessments:

Tallow Quarterly Contract Prices

• FD NWE (EUR/MT & conversion to US CTS/LB)
• FD UK (GBP/MT & conversion to US CTS/LB)

Vegetable Quarterly Contract Prices.

• FD NWE (EUR/MT & conversion to US CTS/LB)
• FD UK (GBP/MT & conversion to US CTS/LB)

Tallow Spot Prices

• FD NWE (DRUMS) (EUR/MT & conversion to US CTS/LB)
• FD NWE (BULK) (EUR/MT & conversion to US CTS/LB)
• FD UK (DRUMS) (GBP/MT & conversion to US CTS/LB)
• FD UK (BULK) (GBP/MT & conversion to US CTS/LB)

Vegetable Spot Prices

• FD NWE (DRUMS) (EUR/MT & conversion to US CTS/LB)
• FD NWE (BULK) (EUR/MT & conversion to US CTS/LB)
• FD UK (DRUMS) (GBP/MT & conversion to US CTS/LB)
• FD UK (BULK) (GBP/MT & conversion to US CTS/LB)

Crude Spot Price

• FD NWE (BULK) (EUR/MT & conversion to US CTS/LB)

 

Glycerine (Asia-Pacific)

Weekly Price Assessments:

Glycerine Spot Prices

• CFR N.E. ASIA  (USD/MT & conversion to US CTS/LB)
• CFR CHINA (USD/MT & conversion to US CTS/LB)
• FOB S.E.ASIA (USD/MT & conversion to US CTS/LB)
• CIF CHINA MAIN PORT (USD/MT & conversion to US CTS/LB)

 

Glycerine Contract Prices

• CFR N.E. ASIA (USD/MT & conversion to US CTS/LB)
• DEL S.E.ASIA (USD/MT & conversion to US CTS/LB)

 

Glycerine (US Gulf)

Weekly Price Assessments:

Glycerine  Monthly Contract Price

• VEG FOB Midwest (US CTS/LB & conversion to USD/MT)
• TALLOW FOB Midwest (US CTS/LB & conversion to USD/MT)
• PHARMA US FOB Midwest (US CTS/LB & conversion to USD/MT)

Glycerine Spot Prices

• VEG  FOB Midwest (US CTS/LB & conversion to USD/MT)
• TALLOW FOB Midwest (US CTS/LB & conversion to USD/MT)
• CRUDE FOB Midwest (US CTS/LB & conversion to USD/MT)

 

General Information:

Assessment window: Price assessments are based on information supplied by market participants through the week up to close of business on Wednesday at 1700 hours in London, Singapore and Houston.

 

Specifications: ICIS pricing assesses liquid glycerine, and price ranges encompass product of all grades: kosher and non-kosher; tallow and vegetable.

 

Timing: Cargoes delivered two-six weeks forward from the date of publication.

 

Terms: 30-60 days after b/l date.

 

Standard cargo size: In Asia, typical cargo sizes range from 20-100 tonnes for drummed and iso-tank parcels and 400-500 tonnes for bulk cargoes. In Europe the quotes are for lots of 20-100 tonnes for drums and lots of 500 tonnes for bulk. In the US bulk shipments are tank cars of 46,000 lbs or rail cars of 180,000 to 190,000 lbs.

 

Assessment basis: The ICIS pricing glycerine price assessments are based on information gathered throughout the week from producers, consumers and traders. The assessment takes into consideration buy/sell indications, firm bids and offers, notional price discussion, reported and confirmed deals. In the event of lack of trades, the published price range represents the highest bids received and the lowest sell indications of the week.

Factors such as supply/demand balance and feedstocks are also taken into account.

In Europe, the glycerine report follows activity in the quarterly contract for tallow and vegetable grades and spot markets for tallow, vegetable and crude grades. News of spot imports from Asia are often included in the text but are excluded from the price ranges. Export news is rare due to Europe being a net importer.

The market commentary covers the impact of the biodiesel market on the refined glycerine market and spot prices are also quoted. Relevant issues such as news about genetically modified (GM) crops are often included in the text. However, spot glycerine derived from GM sources is excluded from the price ranges.   

All prices in the tables, as well as spot prices in the commentaries, reflect values for medium-size customers. Prices quoted are for prime material unless otherwise specified. The European report also has a crude glycerine FD NWE price quote, which refers to vegetable origin product of 80% purity.

In Asia, spot prices are for drummed shipments on a FOB S.E.Asia, CFR China and CFR N.E. Asia basis while contract prices are settled monthly on a CFR N.E. Asia and Delivered S.E.Asia basis, also inclusive of drumming costs. The CFR N.E.Asia price represents deals into Taiwan and Korea. FOB S.E.Asia quotes include transactions in Malaysia, Singapore, Thailand, Vietnam, the Philippines and Indonesia. CFR China quotes represent trades into China.

In Asia, glycerine is derived from vegetable oils, primarily palm oil or coconut oil. Asia is a major exporter of glycerine to global markets and in the region glycerine is an active spot commodity. The Asia report covers refined vegetable glycerine derived mainly from palm oil in Malaysia and Indonesia, and coconut oil in the Philippines.

The Asian report also has a crude glycerine CIF China Main Port price quote, which refers to vegetable origin product of 80% purity, packed in flexibags and imported by traders, refiners and end-users in China.

 

The US is a net importer of glycerine, collecting refined product from Indonesia, Malaysia, Argentina  and Europe. Crude glycerine in the US is mainly from biodiesel refineries, where it is a co-product of the renewable fuel.  The US glycerine report addresses contract pricing for refined product only, showing separate price quotes for tallow, vegetable, and pharmaceutical grades of glycerine. The pharmaceutical grade glycerine price quote addresses contracts for glycerine of 99.5 -99.7% purity destined to pharmaceutical end-uses. Pharmaceutical grade glycerine requires much more certification from the federal government, a process that is reflected in the grade’s higher pricing compared with tallow and veg grade glycerine. Contracts are generally conducted on a quarterly basis, but can be monthly, semi-monthly, or annual depending upon market conditions and supply/demand ratios. ICIS pricing also quotes spot price bands for tallow -derived, vegetable-based and crude glycerine.

All regional reports offer market commentary that includes details of traced transactions, news on the supply/demand balance, export/import information, contract price negotiations and general sentiment for price direction. Where applicable there is product information, comments on up and downstream market developments and general market intelligence.

 

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