Feedstock Accessibility Stabilizes the Asian Glycerine Market
- 06-Jun-2022 5:28 PM
- Journalist: Patricia Jose Perez
Tanjung Pirok, Indonesia- On Sunday, Luhut Pandjaitan, senior minister of Indonesia, stated that the Indonesian government permitted approximately 302000 tonnes of palm oil for export. He said the licenses were allowed to specific organizations for the most part for refined, bleached, and deodorized up (RBD) palm oil and olein. The market sentiments of Glycerine will follow the stagnancy in the Asian market as major manufacturers have an adequate amount of feed, inclusive of palm, soy, and coconut oil, to cater to the regional demand from downstream sectors.
On Friday, an Indonesia Palm Oil Association official said various palm oil plants have quit purchasing natural palm products from producers because of an absence of commodities. At the same time, farmers griped that the cost of the organic product was at this point to recover to levels seen before the boycott in the wake of falling by around 75%. Luhut added, that increase in the production and quantity of palm oil will be continued in the domestic market to fulfil the demands of local farmers.
Further, he added that the government officials would require palm oil companies to sell a likeness 300,000 tons of cooking oil each month under the DMO (Domestic market obligation) during a progress period following the resumption of products. As a ripple effect, Glycerine prices may remain stagnant in the upcoming weeks in the Asian market.
As per the resources, the government officials of Indonesia will continue to safeguard its commodities as the public authority continues to support homegrown political help amid inflated commodity prices and developing social discontent. The demand from end-use businesses such as food and cosmetics becomes the factor that pushes the market sentiments of Glycerine in the market. It is a thickening and sweetening agent in food and beverages, making Glycerine a primary element.
As per ChemAnalyst, the steady demand from downstream sectors and feasible feed with the major producers will drive the Asian market. Personal care and drug production will become the driving force for Glycerine prices in the Asia Pacific region.