The US and Europe are net importers of refined vegetable glycerine, with Asian oleochemical production of fatty acids and alcohols forming the supply stream.
The US and Europe produce vegetable and tallow derived glycerine and refine it to meet various specifications such as US pharmacopeia, kosher and/or halal (vegetable only).
In the US, Europe and South America, biodiesel production from fats and oils via transesterification has injected new streams of crude glycerine that are different from the hydrolyser crude produced in the oleochemical processes.
South American biodiesel glycerine is produced primarily in Argentina, where refining capabilities are also in place. Refined glycerine from this production stream is exported mainly to the US.
Not all biodiesel crude glycerine can be refined, with residues such as methanol and salts forming the block points. This situation is found more in US biodiesel production where multifeedstocks are common. In South America, biodiesel production is predominately from soybean oil, keeping co-product glycerine a straight vegetable product.
Globally, refined glycerine supply is mostly balanced with demand, but new end-uses are emerging, such as glycerol-derived propylene glycol (PG) and glycerol-derived epichlorohydrin (ECH).
Refined glycerine prices are expected to strengthen over the next 12-18 months and new certification stipulations are arising to ensure quality throughout the logistics chain.