Glycerin Prices Remain Well Supported

Crude glycerin prices continue to stretch to new heights with FOB values reaching into the low to mid 20 cents per pound range and Kosher glycerin values receiving a premium to crude.  A variety of factors appear to be lifting values to levels that appear to be at all-time highs.    

One market participant stated they are rapidly looking at glycerin alternatives, as current market conditions are not sustainable. There are reports of some demand destruction occurring in animal feed and the export market, and there had been rumors that coal freeze purchasers might be stepping out of the market. However, now it appears that the coal freeze segment of the market will remain, as there had been some issues with alternatives they were looking to use. 

Compounding issues on the demand side are a partial closure of China’s third largest port and vertically integrated agricultural producers…