South East Asian Refined Glycerine prices heading towards USD 2000 pmt FOB
October 19th, 2021
Most of the South-East Asian refined glycerine producers are sold out until the end of the year and do not have sufficient visibility on both biodiesel and oleochemicals’ sales to be able to offer for Q1/2022. Current CPO prices at above USD 1300 pmt FOB Malaysia/Indonesia continue to be supported by a good international demand while the Brent crude oil remains firm at USD 84/bbl which should favor PME sales. While both Malaysia and Indonesia have relieved their anti-Covid sanitary measures with a view to urging foreign workers to come back to palm plantations, the palm production capacity is however far from working at full pace. The freight situation has unfortunately not improved with the same difficulties encountered by refined glycerine exporters to move their cargoes to the export market, hence generating a backlog of orders and shipments which currently disrupts biodiesel and oleochemical production units.