Improved Demand and Rising Feedstock Costs Likely to Drive Glycerine Prices in March 2023
- 03-Mar-2023 2:26 PM
- Journalist: Stella Fernandes
The price of Glycerine has started to showcase an optimistic trajectory across the globe from the mid of February 2023 and is expected to continue in the upcoming months due to diminishing downstream demand. The rising feedstock Palm Oil and other edible oil prices in the major exporting countries also influenced the price trajectory for Glycerine.
Indonesia is the world's largest exporter of Glycerine and feedstock Palm Oil. The price of Palm Oil surged globally following Indonesia's statement that it would block some export permits to reduce cooking oil prices ahead of Ramadan (Ramzan) next month. As Palm Oil and its derivatives are used to produce Glycerine, the supply disruptions might have a substantial impact on the downstream market. However, if the trend continues, Glycerine prices will increase in the global market.
While demand dynamics from the downstream pharmaceutical, food, and healthcare industries escalated, prices for Glycerine increased in the major producing nations, particularly Indonesia and Malaysia. As Palm Oil and other edible oil prices increase, refined Glycerine manufacturing costs will likely rise in the upcoming months. Also, Biodiesel manufacturing is increasing, and the oleochemical business is thriving, influencing the Glycerine market. As a result, the prices for Glycerine are improved, and they are anticipated to improve further.
Market participants in the US and Europe also saw demand improvement from the pharmaceutical, food, and healthcare sectors. Numerous petrochemical products, particularly Glycerine, are now experiencing positive demand dynamics due to increased orders and high energy prices. Also, ease of inflation and relieved port congestion will influence the market on the back of bulk imports to cater to the consistent demand.
According to ChemAnalyst's analysis, "The prices for Glycerine are projected to remain stable in the coming weeks due to the steady downstream demand. In the following months, it is also projected that prices may rise further globally.