For the Quarter Ending March 2022
The prices of Glycerine observed an exponential growth of 10% in Q1 of 2022 when compared with Q4 of 2021 in the North America. The hiked prices were accompanied by the increasing prices of feed, palm, soy, and coconut oil along with its shortage in the regional market. Demand from downstream sectors such as pharmaceutical, food and personal healthcare became the driving forces leading to spike in the prices of Glycerine. Furthermore, manufacturers have been facing feed supply shortage from the suppliers, leading to higher production cost of Glycerine in the North American market showcasing its proportional effects on the prices of Glycerine. The prices of Glycerine in the US market landed at USD2812/ton, DEL Midwest, USA in the month of January and USD2955/ton, DEL Midwest towards the quarter ending March 2022.
In the Asian market, the prices of Glycerine escalated approximately by 15% in Q1 of 2022 when compared with Q4 of 2021. The outburst of Omicron virus in China soared the demand of Glycerine in the pharmaceutical sectors, forcing the manufacturers to increase their production rate. These factors were accompanied by the spiked prices of feed corn as an ill effect of political tension between Russia and Ukraine. Hence, with the hiked prices of feed, the production cost of Ethanol also elevated leading to price hike towards the quarter end. The prices of Glycerine were quoted at USD2139/ton, CFR Shanghai, in January and USD2227/ton, CFR Shanghai, China in the month of March 2022.
In the European market, the prices of Glycerine were noted as USD2752/ton, CFR Hamburg in January and USD2835/ton, CFR Hamburg, Germany towards the quarter end of Q1 2022. The offtakes from the downstream sectors that is pharmaceutical, and cosmetics became the major factor for hiked prices in European market. When compared with Q4 of 2021, the prices of Glycerine in Q1 of 2022 have observed a hike of approximately 13%. European Glycerine manufacturers also faced the crisis of feed (corn) as the suppliers were unable to provide the feed due to trade route change, which led to high production cost of Glycerine.
For the Quarter Ending December 2021
During the fourth quarter of 2021, the North American Glycerine market observed a bullish sentiment throughout the quarter. As the demand outlook from the downstream cosmetics, skincare, and pharmaceutical industries outstrip the supply capabilities of the regional producers. Whereas, the discovery of the new omicron variant of COVID 19 further induced support from the Pharmaceutical industries in the domestic market. In repercussion, the offers for Glycerine observed a persistent growth of approximately 10% on a quarter o quarter basis, and the DEL Midwest (USA) discussion was settled at USD 2641 per tonne., during the quarter ending December 2021.
Overall, the Glycerine market in the Asia Pacific region remained consolidated throughout the fourth quarter of 2021. This development is majorly attributed to the demand outlook from the domestic and overseas buyers which soared drastically after the discovery of the omicron variant of COVID-19. The inquiries from the downstream cosmetics and skincare industry exceeded the capabilities of the Southeast Asian producers. As the persistently soaring offers for Palm oil in the Asian market forced the producers to curtail the operational loads in the production facilities. As a ripple effect, the quotation for Glycerine USP 99.5% grade witnessed an exceptional growth of 28% in the Q4 of 2021, and FOB Johor (Malaysia) monthly average discussions were settled at USD 2055 per tonne in December 2021.
The European Glycerine market remained buoyed in the Q4 of 2021, due to the excessive demand that surpassed the domestic production capabilities amidst the ongoing energy crisis in the European region. The high charges of electricity forced numerous producers to reduce the operational rates, which further coupled with the high freight charges boost the sentiments of domestic suppliers to raise the quotations in the domestic market. in addition, the resurgence of COVID uplifted the demand outlook further, in response the CFR Hamburg discussions for Glycerine USP grade were settled at USD 2635 per tonne, in December.
For the Quarter Ending September 2021
During Q3 of 2021, prices of all refined grades of Glycerine were assessed on an upward trend backed by the robust demand from the downstream sectors. Supply chain remained under pressure due to the shipping and logistic issues along with the continuous increase in freight charges and restricted availability of shipping containers which exerted pressure on both domestic producers as well as importers. Most expensive of the refined grade has been pharmaceutical grade which went through number of certifications and approvals and is available only in drums. In the mid of the quarter, prices of refined Tallow grade Glycerine were measured at USD 1749 per MT DEL Midwest.
In Asia, the demand for Glycerine gained stability during Q3 of 2021 after attaining immense heights in the previous quarter however the market sentiments continued to remain high. Furthermore, shipping delays continued to lay large over the oleochemicals market given the pandemic caused shutdowns and restrictions at critically important ports in South Asia. Malaysia, a key producer, curtailed its operating rates as Southeast Asian countries struggled to control resurgence in covid cases in their territories. Meanwhile, China remained an attractive destination for Glycerine sellers to minimize the losses due to shipping delays. Various taxes including export taxes on CPO were also reduced in Southeast Asia. In India, market remained largely stable with a tilt towards demand fundamentals, given the high applicability of Glycerine.
During the third quarter of 2021, the Glycerine market in Europe remained tight as the imports from Asia stayed impacted due to resolutely high freight and shipping charges as well as due to the congestion on several ports of China. Market also witnessed drop in biodiesel production however economic recovery due to successful vaccination kept the biodiesel demand up. The demand from key downstream sectors particularly cosmetics and detergent sectors remained robust for the material where crude Glycerine prices cross USD 695.10 per MT in European market. Inventories were remarked as short by various market participants while demand for the product continued to move upwards.
For the Quarter Ending June 2021
During the second quarter of 2021, Glycerine supplies in the North American region were improved comparatively from the previous quarter, as the industrial manufacturing ramped up in the US gulf region after facing the brunt of the winter storm-led disruptions. Increased volume of imports from the Latin America and Asia further supported the market supplies. Domestic suppliers confirmed spot availability for refined Glycerine and the buyers were willing to pay huge premiums to leverage pickup in demand trends. Demand was persistent from the downstream food and cosmetics industries, whereas the sentiments to replenish the inventories levels were strengthened ahead of upcoming hurricane season in the US Gulf region. As a ripple effect, the pricing trend observed a continuous up stride with FOB Ohio prices in June reaching USD 1325 per tonne for Glycerine 99.7% (Koshner Grade).
Glycerine prices in the Asia pacific region observed a multi fold hike in the offers owing to sturdy demand from the downstream industries and constrained production amidst shortages in the key feedstock chemicals. Due to limited availability of the feedstock, Glycerine production volumes reduced by certain margins in Indonesia. Whereas the demand was exceptional from the downstream pharmaceuticals and personal care sector to cope up with the surged offtakes from the hand sanitizers industries, as the second COVID wave severely impacted the Southeast Asian region in the first half of the quarter. Indian manufacturers held up the market fundamentals by increasing the offers by around 19.01% within Q2 with Ex-Works prices in June hovering around USD 1256 per tonne.
In the European region, Glycerine supplies showed improvement over the previous quarter, owing to better feedstock availability and production of biodiesel as the operational rates at manufacturing plants of the northwest European region restored with the better climatic conditions. Furthermore, supply side support was sought after the prolonged turnaround at one of the production facilities of OXEA Chemicals ended in the second half of the quarter, which improved the overall regional market outlook in Q2. Demand was resolute from the downstream pharmaceutical and personal care sector. Led by strong demand patterns, the CIF NWE Glycerine prices were assessed around USD 1134 per tonne in June.
For the Quarter Ending March 2021
Supplies in the North American region were constrained during the first quarter of 2021. The tightness was owned to the production disruptions caused amidst severe freeze weather conditions in the USA gulf coast region. The rigorous weather forced shutdown of a major plant in the Bay City site with production capacity of 120,000 MT/year. The demand surged due to shortage in supplies and continuous offtakes from the downstream sectors. OQ chemicals surged the feedstock prices which proportionally surged the prices of Glycerin with a quarterly FOB average of USD 1150/ton in Texas.
Glycerin supplies in the APAC region were balanced-to-tight during the first quarter, amidst upstream shortage due to plant turnarounds during the Chinese Lunar New Year holidays. Furthermore, the imports of Glycerin were disrupted amid the Suez Canal blockage in the end of March. However, the situation seemed to balance out by the commissioning of new crackers in China. The demand surged as offtakes from the downstream pharma sector improved. Glycerin FOB Shanghai prices were hiked to USD 1180/ton due to high demand and global supply shortage in March.
During the first quarter of 2021, the supplies of Glycerin were tight in the European region, due to low Biodiesel production in the northwest European region as several refineries were operating at low rates. Glycerin shipment to the APAC region remained halted amid the Suez Canal blockage in late March. In Austria, a new 200,000 bpd Glycerin & Biodiesel plant has been proposed to be established in Schwechat refinery with an investment of USD 36.1 Million by 2022. The demand was balanced from the downstream sector, the average CFR prices in Hamburg of Glycerin were USD 630/ton.
For the Quarter Ending December 2020
Demand for Glycerine in the Asian market remained firm during Q4 2020. Pickup in demand in India during the festive season in November also contributed to a prominent surge in its values. The price for refined Glycerine in India for the quarter ending December 2020 was averaged around USD 880 per MT during the quarter. Global Green Chemicals (GGC), one of the major refined Glycerine manufacturer in Thailand revealed refined establishment of Glycerine manufacturing unit in December 2020. This new plant has a capacity of 20 KTPA will improve the supply of refined Glycerine in the APAC region. As the biodiesel and oleochemical sector is a major contributor in Glycerine production, significant downfall in these sectors resulted to tight supply of Glycerine in Asia.
Firm demand for Glycerine from the biodiesel and oleochemicals industry has sustained its rich market sentiments in Europe. As European Union is eyeing to reduce the imports of palm oil as it leads to increased deforestation activities, concerns of stressed availability of the feedstock has provided a forward push to the prices of Glycerine in the regional market. Due to second wave of COVID 19 and restricted movement across European region, supply of Glycerine got hampered. However, the plant utilization rates gradually improved under the optimism that prevailed from the consistent upward push in the crude values.
With the consistent increment in the prices of raw material, Glycerine prices in the US took an uptrend later in the quarter. Increment in the demand from the end user industries like personal care and health care boosted the market sentiments. Prices of the glycerine took an uptrend in the relevant quarter and also after the announcement of the formulation from World Health Organization (WHO) for making Glycerine based hand rub and sanitizers for the moisturization of the skin increased the demand for the Glycerine in the North American market. Rising Brent crude is further anticipated to support the price trend in the region at least till Q1 2021. In addition, a major biodiesel producer of US kept its plant shut throughout the quarter which also reduced the availability of Glycerine in the market.