Reduced glycerin supply hints at slowing US domestic biodiesel output

Reduced glycerin supply hints at slowing US domestic biodiesel output

Participants in the crude glycerin market have indicated that prompt supply may be limited.

One trader speaking to Fastmarkets on Tuesday June 18 said that the market was “a bit tight” this week, adding: “There isn’t a lot of spot volume available, but interestingly, it doesn’t seem to be moving prices.”

Several other traders agreed with this sentiment “The market is unchanged, with nothing really moving,” one said. “Lower supply is being met with indifference because it appears there has not been a pick-up in demand.”

The US Environmental Protection Agency (EPA) was due to release its EPA moderated transaction system (EMTS) data on June 20. This will provide additional insight into domestic biodiesel production and, since crude glycerin is a co-product of production, it will offer a glimpse at glycerin supply.

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