Glycerine market situation eases
At the beginning of 2020 the glycerine market was very weak. However, due to the corona virus crisis, which is still ongoing, the market has moved from a depression and overstocking in February to a complete desiccation at the end of March. From 15th March onwards, prices soared at an unsurpassed pace. Raw glycerine was temporarily almost unavailable on the market. In addition, mineral oil prices collapsed from March 2020 onwards, undermining the profitability of biodiesel and resulting in technical glycerine as a side-stream of biodiesel production being hardly produced at all, leading to price increases that were unknown until then.
The beginning of the second quarter was characterized by shrinking inventories. All crude glycerine inventories from integrated refineries were processed. Since mid-January, the Chinese market in particular has been living off the 2019 inventories.
Good demand from customers in the food and cleaning industries has slowed down somewhat since the second half of the second quarter. As supply is improving and the demand of entire industries is suspended, inventories are accumulating again.
In addition, as countries slowly reopen and fuel consumption increases worldwide, glycerin prices are slowly falling. However, pre-crisis prices will not be reached in the near future. Biodiesel production in particular will only recover gradually and it will therefore take some time to reach pre-pandemic production levels.
The market is currently recovering due to the factors mentioned above. The situation that only contracts that have already been signed could be kept is no longer the case and new capacities are available. DistrEbution GmbH in particular has established itself as a reliable supplier during the pandemic and is striving to establish further customer relationships to improve the availability of glycerine in Europe.
Please contact us for individual offers. Small quantities & Large quantities - also as samples for larger requirements - are available at short notice.
