Glycerin Demand has not Fared as Well as Biodiesel Demand

While the pandemic has not had as large an impact on biodiesel consumption as it has for ethanol, glycerin, a by-product of biodiesel production, has seen demand fall sharply. Both refined and crude glycerin prices have suffered.  Some of the contraction in the crude market can be attributed to the cyclical pricing often seen on a yearly basis.  Refined pricing fell, while not abnormally low, moved rapidly from trading in the mid-50 cents range down to the low 30’s over a three-month period.

The pandemic reduced refined glycerin demand as restaurants shuttered, causing food demand to decline 10 to 20 percent. Grocery store food demand offset some of this decline, rising roughly six percent, by one account. Another factor helping to alleviate some lost demand has come from the pet food market where glycerin is used in soft pet foods and dog…