Editor Serena Seng, serena.seng@icis.com

        NOTE: For full details on the criteria ICIS  pricing uses in making these price assessments, please 

        visit www.icispricing.com and click on “methodology”. Prices are assessed based on drummed material          

        for Asia spot prices on a FOB SE Asia, CFR China and CFR NE Asia basis while crude glycerine spot

       prices for CIF China Main Port is assessed based on material in flexi bags. Contract prices are also

      assessed based on drummed material for CFR NE Asia and DEL SE Asia quotes.

REFINED GLYCERINE

Trade in the Asian spot refined glycerine market picked up slightly after the Lunar New Year festivities. Prices rose $20/tonne on the low end of the range to $600-620/tonne FOB SE Asia, reflecting firm transactions and buy-sell indications heard. 

Majority of deals continued to be concluded at $600/tonne FOB SE Asia week-on-week while offers were largely located at $610-620/tonne FOB SE Asia. Though there were offers heard as high as $650/tonne FOB SE Asia, market participants said offers at such levels were not reflective of the broader market and unlikely to attract any buying interest.

Scarce availability of refined glycerine material from reduced biodiesel production also contributed to upward pressures on refined glycerine prices in the market, regional producers said. Steeper fatty acids prices fuelled by higher feedstock costs also added to the surge in refined glycerine prices recently, oleochemical producers added.

A trader was heard concluding March shipments at $620/tonne FOB SE Asia. Separately, an Indonesian producer sold March cargoes at $600-610/tonne FOB Indonesia.

Although there were market talks that material of Malaysian origin was available at $580/tonne FOB SE Asia, no deals could be confirmed at this level.

In the Chinese market, prices of imported refined glycerine was adjusted $20/tonne higher on the low end of the range to $620-650/tonne CFR China in tandem with southeast Asian values. Buying sentiments for imported material remained languid due to availability of competitively priced domestic cargoes, local sources said.

The wide price gap between imported and domestic material rendered imported material less attractive, local sources added. Offers of domestic refined glycerine rose (yuan) CNY 300-500/tonne to CNY 5,000-5,500/tonne week-on-week, reflecting buy-sell ideas. No deals were heard for the week to Wednesday.

Prices of refined glycerine in NE Asia were notionally adjusted upwards $20/tonne at the low end of the range to $620-650/tonne CFR NE Asia in tandem with rising Southeast Asia values.

Contract prices for refined glycerine in January were located up $30/tonne to $520-550/tonne CFR NE Asia and $510-550 DEL SE Asia.

CRUDE GLYCERINE

Prices of imported material in China rose $10/tonne on the high end of the range to $240-270/tonne CIF China Main Port (CMP), reflecting bids and offers heard. Buying sentiments for crude glycerine in China remained subdued week-on-week due to rising cost of imported material, local sources said. Although there were offers heard as high as $275-280/tonne CIF CMP, such levels attracted no buying interest as buying ideas remained at $240-250/tonne CIF CMP, sources said. According to regional traders, local buyers were staying on the sidelines until the current upward price trend eased.

($1=CNY6.83)

This week on ICIS news ( www.icis.com)

02-Mar-10 07:41 Asian glycerine prices kick off on strong note for March

02-Mar-10 08:32 Asian fatty alcohols market bullish post Lunar New Year

01-Mar-10 12:00 New biodiesel production process uses catalytically active particles to convert industrial byproducts and algae

24-Feb-10 17:52 Europe Q2 fatty acid prices likely to rise - sources

24-Feb-10 12:00 Rising demand and declining dollar help vegetable oil imports post anew high. [4 tables in original article]