Asian Glycerine Market Suffers Downfall Along with Feedstock
- 01-Jul-2022 6:11 PM
- Journalist: Kim Chul Son
New Delhi- Palm oil and soybean oil are the primary upstream elements required to produce Glycerine. The prices continued to follow the south excursion in the wake of having acquired on the initial days of the week following the suspension of production of Glycerine and palm oil by a few Malaysian and Indonesian manufacturers. The key factors influencing the market prices of Glycerine also include demand from the cosmetics and pharmaceutical sectors. These sectors remained active throughout the week, stabilizing the market sentiments of Glycerine in the Asian market.
According to the Malaysian Palm Oil Council (MPOC), the import quantity from India and Pakistan, which are also the major imports of Palm oil in the international market, has slipped. The slow demand from importing countries is the low prices of edible oils in the Indian market. Also, the need for soft oil escalated in the Indian market significantly. Imports of the same acquired at palm oil prices as Indonesia restricted palm oil commodities two months ago, soaring the oil prices. The Indian government, then again, has permitted the import of 2 MT every one of sunflower oil and soyabean oil obligation free for a long time to June 2024. Hence, significant glycerine manufacturers such as Godrej Chemicals and Himalayas have sufficient feed to produce Glycerine to fulfill the domestic demand.
Moreover, after the halted production activity of all commodities in China, feed demand was limited during June. Despite the resumption of operational rates of products in the country, the demand and consumption rates are still lacking, leading to fewer feed imports from Indonesia and Malaysia. As per the MPOC intellects, this decline in the demand has influenced the market dynamics of Glycerine accompanied by palm oil. A stumble of approximately 1.5% occurred in the regional Glycerine market, affected by the demand from end-users.
As per ChemAnalyst, the change in temperature and the upcoming monsoon season in the Asia-Pacific Region is equally impacting the prices of Glycerine. The demand for edible oil from the Indian market may catch pace from September month on the back of the festive seasons. Henceforth, the prices of Glycerine will also escalate during that period. Until then, the stagnancy in Glycerine prices will be followed in the Asian market in the upcoming months.