Asia crude glycerine market in stand-off; some sellers keep offers

SINGAPORE (ICIS)–Limited discussions were heard for crude glycerine cargoes to China, with sellers and buyers on a standoff, market sources said on Thursday.

Some suppliers of Latin American materials have maintained their offers at $205-210/tonne CIF (cost, insurance and freight) CMP (China Main Port), but were met with strong buying resistance.

Some buying indications were heard at $190-200/tonne CIF CMP.

A Latin American trader last concluded a deal at $200/tonne CIF CMP, but some buyers were now looking at procuring cargoes at $190/tonne CIF CMP.

Latin American producers would be under pressure to lower their prices with stocks piling up, a trader in the Asia Pacific region said.

Supply of cargoes of southeast Asian origin remained short with most biodiesel producers in the region operating at lower output due to the lack of export demand.

In addition, the Thailand government has reduced its biodiesel blending mandate from B5 (5%) to B3 (3%) in August.

Demand in China remained weak due to the poor performance of downstream industries like epichlorohydrin (ECH).

Last week, spot prices of crude glycerine cargoes going to China were assessed as $190-200/tonne CIF CMP.

Picture: Glycerine soap bar (Source: imageBROKER/REX/Shutterstock)