For the Quarter Ending March 2023
North America
In the first quarter of 2023, the Glycerine market observed price fluctuation in the North American region. Prices were witnessed to be on the lower end till the termination of the first month of Q1 2023 because of weak domestic seasonal demand, according to market fundamentals. The fact that domestic retailers had ample inventories also influenced the market scenario negatively. The slowing Glycerine market, brought on by falling feed palm oil and other edible oil prices, also affected the production cost. Weather forecasts for Belgium were milder than anticipated, and storage levels were at all-time highs. Later, with the commencement of the second month, the prices went stable. At the end of the first quarter, Glycerine values were accessed at USD 1925/MT with an average quarterly declination of 4.79%. Additionally, the oleochemical business is rising, and biodiesel output is increasing, both of which positively affect the Glycerine market situation.
Asia
The market prices for Glycerine relinquish significantly in the first quarter of 2023 as a result of a decline in seasonal demand from the downstream food, pharmaceutical, and healthcare industries. The prices were accessed at USD 650/MT FOB Jawa Barat (Indonesia) and USD 710/MT Fob Johor (Malaysia) at the termination of Q1 2023, with an average quarterly declination of 7.03% and 5.42%, respectively. The price trajectory for the feedstock edible oil, such as palm oil, also showed a sharp fall, which had a detrimental impact on the glycerine market. Also, domestic merchants had to drop their quotations to clear stock because the demand from the domestic market was lower than usual, and the volume of orders was lower than typical from the international market too. The downward trend of the feedstock palm oil and other edible oils also supported the Glycerine trajectory. Nonetheless, the prices were recorded to stabilize at the termination of Q1 2023, backed by static demand and enough inquiries from the overseas market.
Europe
In the first quarter of 2023, the prices for Glycerine in the European market showcased a Mixed trend. At the end of the first quarter of 2023, Glycerine values were accessed at USD 1880/MT CFR Hamburg with an average quarterly declination of 3.32%. Due to lackluster demand from the domestic market, the market fundamentals showed that Glycerine prices depreciated throughout January. The availability of sufficient inventories on the shelves of domestic merchants had combinedly impacted the market situation. Decreasing palm oil and edible oil (feed) prices additionally influenced the production cost keeping the Glycerine market feeble. With storage at record highs, Germany’s weather outlook was in a milder position than anticipated, which has somewhere supported the low offshore demand and prices of Glycerine. New production in the exporting countries in response to rising demand and high energy prices is likely to drive the market in Germany. Increased feed palm oil and edible oil prices will likely influence the Glycerine market. After following a consistent decline over the past few months, the prices of Glycerine are now gaining their normal trajectory in the German market.
For the Quarter Ending December 2022
North America
In the fourth quarter of 2022, Glycerine market patterns witnessed fluctuation in North America. Prices were witnessed to increase till the second month of the quarter, starting with Q4 2022, because of the high cost of manufacturing, numerous logistical issues, and rising inflation. Rising transportation costs and port congestion at the key ports also helped to keep the market position strong. Additionally, the market benefited from the disarray in Glycerine production brought on by higher energy prices. Later in December, prices started to drop due to seasonal end-user sector demand. Additionally, the merchants' sufficient stockpiles in relation to demand kept the market weak. At the end of the fourth quarter, Glycerine values were accessed at USD 3080/MT with an average quarterly inclination of 0.35%.
Asia
The market prices of Glycerine in the fourth quarter of 2022 witnessed a substantial drop on the back of decreasing seasonal demand from the downstream pharmaceutical, food, and healthcare sector. The prices were evaluated and accessed at USD 1050/MT Fob Johor (Malaysia) and USD 920/MT FOB Jawa Barat (Indonesia) at the termination of Q4 2022, with an average quarterly declination of 14.95% and 15.92%, respectively. The raw material palm oil and other edible oil prices also showcased a significant decline in the price trajectory affecting the Glycerine market negatively with low input cost. Furthermore, the suppliers and domestic merchants also decide to recuperate the prices to the pre-pandemic level to maintain a stable market trend. Moreover, low demand on the back of unforeseen weather conditions across the globe caused orders from the downstream sector to shrink at a faster rate.
Europe
The prices for Glycerine in the European region showed a see-saw tendency in the fourth quarter of 2022. The supply chain was impacted by the continuous port congestion and supply disruption in the European region, which led to price increases in the first two months of Q4 2022. Glycerine trajectory was also affected by the high freight costs. Due to the impending holiday season, European retailers have decided to refill their inventory in order to meet demand and maintain the supply-demand equilibrium. Nevertheless, December sees a price decline as a result of rising in-built inventories and declining end-user sector demand. Also, the freight cost dropped significantly, affecting trading activities and keeping the market at ease. At the end of the fourth quarter of 2022, glycerine values were accessed at USD 3070/MT CFR Hamburg with an average quarterly inclination of 0.46%.
For the Quarter Ending September 2022
North America
During the third quarter of 2022, Glycerine witnessed an inclining price trajectory owing to increased feed palm oil and other edible oil prices due to geopolitical conflict and logistic issues. The cost of Glycerine hovers slightly on the higher side. Regardless of the firm demand from downstream pharmaceuticals, cosmetics, and food industries, the price increased marginally because of the inflated economy and currency fluctuation. Furthermore, incremented manufacturing costs and boosted raw material market sentiments also affected the prices of Glycerine in the North American region. At the termination of Q3 2022, the values accessed at USD 3020/MT with an average quarterly inclination of 1.54%.
Asia
In the third Quarter of 2022, Glycerine prices witnessed a plunging trajectory due to shrinking demand and ongoing geopolitical conflicts. At the commencement of the first half of Q3 2022, Glycerine prices decreased abruptly due to steady demand and existing inventories in the Asia Pacific region. The prices of raw material palm oil and other edible oil also witnessed a depreciating trajectory in the domestic market, affecting the prices of Glycerine. Further, the downstream end-user demand, along with low manufacturing rates and production costs, affected the prices of Glycerine. With the commencement of September, the domestic merchants started to stockpile the inventories for future demand. Increased raw material prices led to a slight increase in the price of Glycerine. At the termination of Q3 2022, the values accessed at USD 1135/MT with an average quarterly declination of 9.44%.
Europe
In the European market, Glycerine (Excipient) prices witnessed stable market sentiments with the values accessed at USD 2990/MT with an average quarterly inclination of 0.86%. Throughout the third quarter of 2022, feed palm oil and other edible oil prices were stable in the European market owing to low demand from end-user industries; the offtakes from the end-user sectors, pharmaceutical, food, and cosmetics, also play a part in the price hike of Glycerine. The plunging demand and adequate existing stock kept the glycerine market at ease. Also, the stable production rate and low manufacturing cost positively influenced the European market in Q3 2022.
For the Quarter Ending June 2022
North America
During the second quarter of 2022, Glycerine prices overall showcased a declining price trajectory. At the onset of the first half of Q2 2022, owing to increased feed benzoic acid prices due to geopolitical conflict and logistic issues, the cost of Glycerine rose slightly regardless of the stable demand from downstream pharmaceuticals, cosmetics, and food industries. With the termination of the first half of Q2 2022, the glycerine price declined gradually. The stunted demand from end-user industries and enough existing supplies prompted the glycerine prices to deceased. Furthermore, fallen-out manufacturing costs and falling raw material market sentiments also affected the prices of Glycerine in the North American region. At the termination of Q2 2022, the values accessed at USD 2885/MT with an average quarterly declination of 0.78%.
Asia
In the second Quarter of 2022, Glycerine witnessed a plunging price trajectory owing to shrinking demand and ongoing geopolitical conflicts. At the onset of the first half of Q2 2022, the Glycerine prices suddenly decreased due to steady demand and existing supplies in the Asia Pacific region. By the termination of the first half of Q2 2022, Glycerine witnessed a drastic plunge in the price trend, followed by the ease in raw material benzoic acid prices. Furthermore, the demand from downstream end-user industries decreased along with low manufacturing rates, and production costs affected the prices to be on the lower end. At the termination of Q2 2022, the values accessed at USD 1865/MT with an average quarterly declination of 5.39%.
Europe
In the European market, Glycerine (Excipient) prices were witnessed to soar with the values accessed at USD 2915/MT with an average quarterly inclination of 2.6%. The offtakes from the downstream sectors, such as pharmaceutical, food, and cosmetics, played a minor role in the price hike of Glycerine owing to low demand from end-user industries. At the commencement of the first half of Q2 2022, global feed benzoic acid prices were the primary factor for hiked-up prices in the European market. Regardless of the ongoing geopolitical conflict, the plunging demand and enough existing stock kept the glycerine market at ease. With the termination of the first half of Q2 2022, the prices went stable with the market's steady demand and supply.
For the Quarter Ending March 2022
North America
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.
Asia-Pacific
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.
Europe
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
North America
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.
Asia Pacific
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.
Europe
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
North America
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.
Asia
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.
Europe
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
North America
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).
Asia Pacific
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.
Europe
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
North America
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.
Asia-Pacific (APAC)
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.
Europe
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
North America
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.
Asia
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.
Europe
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.
