US 80% crude glycerine (bio-crude) prices were assessed narrower this week as inventories carried over from 2013 have been drawn down and biodiesel production has not completely ramped up yet this year, sources said on 5 March.
Some large biodiesel producers are running, and three additional large plants are poised to come online in coming weeks, a market player said.
Crude glycerine prices on a FOB (free on board) US Midwest basis were at 9.5-11.5 cents/lb ($209-254/tonne), market players said. Crude glycerine is a 10:1 co-product of biodiesel production via transesterification.
Price direction, looking forward, is still unclear, sources said.
With continued uncertainty as to biodiesel production in the US, the crude glycerine market could tighten, a large buyer said.
However, the eminent exit of buyers in the de-icing sector will free up a good portion of crude glycerine for the rest of the market.
Published ranges were said to be representative of the market for medium-sized buyers and represent non-kosher crude glycerine.
Kosher crude glycerine is generally at a premium to non-kosher prices. Kosher crude glycerine was heard hitting as high as 14 cents/lb on a (DEL) delivered Midwest basis.
Crude glycerine deals out of Argentina and the South America Pacific ports were heard steady at around $270-280/tonne on an FOB basis.