Refined glycerine prices pressured on imports
Contract
US refined glycerine contract and spot prices were under slight downward pressure because of competitive prices offered by importers, market sources said during the week ended 3 August.
Asian refined glycerine imports were tagged as the main thrust in competitives, but sources said it was mainly in spot business that prices were moving down.
The contract ranges above were progressed unchanged from July to August assessments because most contracts are quarterly, keeping the ranges largely representative of the overall market.
While August price sentiment was softer, most sources attributed this to the competitive import offers and seasonally flat demand.
Buyers commented on the soft August price ideas, but said that expectations were that demand would strengthen towards September as the anti-freeze buying season ramps up.
Buyers and sellers said refined glycerine volumes going into anti-freeze were expected to increase as companies continued to seek bio-friendly product lines.
Spot
Vegetable and tallow spot ranges were assessed down this week, with a deeper downward movement on the veg-based material because the bulk of competitive business was said done with Asian imports of kosher quality refined glycerine.
Traders said offers in the mid-30s cents/lb were heard in the midwest, while offers on the East coast were slightly higher for kosher quality material.
Not all competitives were from imports, as market participants also mentioned that two midwest biodiesel refiners were active in the spot market with offers at the same level as the imported material.
With the veg prices pressured down, tallow glycerine prices also drifted because buyers were able to readily source kosher quality material.
When buyers can get attractively-priced kosher quality glycerine, that availability leads to a dip in tallow prices because it affects demand.
Kosher quality glycerine from imports may, or may not, be certified, although the glycerine may still meet all the purity specifications, which is one reason competitive prices emerge in that tier.
Biodiesel-derived crude glycerine
There were no changes in the 80% biodiesel crude glycerine assessment, with most business continuing within the range above.
Traders said demand for bio-crude was flat. One reason for this was that the US continues to be net-short on glycerine refining capacity and biodiesel crude glycerine of 80-85% purity requires some treatment for salts and residues before it can be further processed into value-added fully refined glycerine.
The lack of ability to get the biodiesel crude glycerine refined to about 85-92% purity remains a limiting factor for the industry in getting sufficient crude to serve emerging applications.
The US continues to be a net importer of refined glycerine, with approximately 40% of its requirements met by imports.
($1 = €0.70)
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