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Editor Ben Lefebvre, ben.lefebvre@icis.com
NOTE: For full details on the criteria ICIS pricing uses in making these price assessments, visit www.icispricing.com and click on “methodology”.
US refined glycerine spot prices were stable as buyers and sellers started to haggle over Q2 contract prices, sources said during the week ended 3 March.
Buyers and sellers said spot prices were unchanged at 30-32 cents/lb FOB midwest amid a quiet market.
A large producer was heard to be targeting a 10 cents/lb ($220/tonne or €163/tonne) increase for Q2, but this could not be confirmed.
Most buyers and sellers said the contract price range would most likely narrow in Q2, although there was some disagreement as to which direction the contraction would occur. A producer said the bottom of the price range would disappear as firm demand and tight crude glycerine supply forced values higher.
Buyers concurred that sales were improving, but said producers would most likely not see more than 5 cents/lb in increases.
Orders were strong in the food additive and polyols sectors, sources said. One trader said supply would not constrict too much as sales to the de-icing market were about to drop due to the warming weather.
Crude glycerine values were stable with one transaction heard done at 10.5 cents/lb. Prices were expected to drop dramatically as the likelihood grows that the US Senate will vote to re-instate the $1/gal biodiesel blending credit that lapsed at the end of 2009. A bill containing the credit was introduced into the Senate during the week.
In Europe, refined spot prices were steady at €320-370/tonne FD NWE for atllow and €370-400/tonne for veg material. Prices in the region could start firming amid higher exports to the US and Asia.
In Asia, refined glycerine prices rose by $20/tonne, to $620-650/tonne amid steady sales and a decrease in crude glycerine availability.
This week in ICIS news ( www.icis.com):
02-Mar-10 19:56 March ICIS IPEX petrochemical price index rises 1.2%
02-Mar-10 16:45 US Senate introduces biodiesel blending credit
02-Mar-10 07:41 Asian glycerine prices kick off on strong note for March
01-Mar-10 10:16 Asian biodiesel prices steady post Lunar New Year festival
01-Mar-10 03:01 Explosion at Petronas methanol plant has no impact on market
