Prices rise despite buy-sell standoff
The supply of August cargoes is tight in the Asian refined glycerine market as the majority of regional producers said they no longer have cargoes to offer. These producers were only offering for September delivery and prices were heard at a wide range, depending on the producer’s stock level.
Offers were at $650-750/tonne FOB SE Asia. Bids, on the other hand, were heard at $580-600/tonne FOB SE Asia. The widening gap between bids and offers resulted in a buy-sell standoff this week. Many buyers remain convinced that sellers are keeping stocks for sale once refined glycerine prices have risen significantly.
Prices were thus assessed at $600-650/tonne FOB SE Asia, reflecting the bids and offers heard.
A buyer with immediate requirements was heard to have bought cargoes at $700/tonne FOB SE Asia this week, but other market players said this was not reflective of the overall buying sentiment. Hence, this was not factored into the assessment.
In the Chinese market, higher prices were also heard this week as offers for imported material have risen in tandem with prices in southeast Asia. The prices of imported material are up by $40/tonne at $630-690/tonne CFR China, reflecting the buying and selling ideas heard.
The prices of locally produced 95% purity bulk cargoes are assessed at yuan (CNY) 4,000-4,300/tonne EXW, up by CNY100-200/tonne from the previous week. Prices of 99.5% purity drummed lots are assessed at a narrower range, at CNY5,100-5,300/tonne EXW.
Crude glycerine
The prices of crude glycerine rose this week on the back of firmer selling ideas. Demand remains stable, but buying interest has increased slightly. Most sellers were heard to be standing by their higher offers this week.
Prices were assessed as up by $20-25/tonne at $280-300/tonne CIF CMP, reflecting deals, bids and offers heard. Bids were heard at $260-280/tonne CIF CMP against offers at $300-320/tonne CIF CMP. There were some deals located at $300/tonne CIF CMP.
Separately, a 1,000 tonne lot of lower quality crude glycerine from Portugal was heard concluded at $260-265/tonne CIF CMP, but this could not be confirmed.
Overall buying interest remains weak in the Chinese market as buyers are still maintaining a wait-and-see approach. In southern China, some buyers seemed to have accepted the hikes in crude glycerine offers, while those in eastern China remain slightly resistant to the higher offers and prefer to stay on the sidelines, local sources said.
Prices in southeast Asia are up by $20/tonne at $270-280/tonne CFR SE Asia.
Freight rates
From southeast Asia to northeast Asia: approximately $10–50/tonne
From southeast Asia to China: approximately $10–30/tonne
($1 = CNY6.44)
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