China Crude glycerine drifted lower on weak sentiments

16 July 2014 14:09 Source:ICIS News

SINGAPORE (ICIS)--Crude glycerine in China softened for a second consecutive week on the back of on weak market sentiments, said sources on Wednesday.

Competitive Argentina-origin cargoes were offered at $280-290/tonne CIF (cost, insurance and freight) CMP (China main port) for end-July or August shipments.

However, those attracted lackluster interest as buying indications drifted lower to $250-270/tonne CIF CMP over the past few weeks.

Expectations of higher supply from ramp up of biodiesel activities in Latin America exerted pressures on crude glycerine pricing.

“I’m not taking any crude glycerine now, who knows when it will reach bottom, let’s just wait and see”, commented one refiner in China.

Brazilian sellers, however, were doubtful of the excess supply as most claimed to have fulfilled their August volume requirements, while some have started taking September orders.

“Don’t forget that in these levels, new uses for CG start to be possible, as we see every day in the news – fuel to boats, dust suppressor, plastic, and animal feed, for example,” added one large trader in Brazil.

 

By Alexis Gan