Participants in the US glycerin market reported on Tuesday July 16 that there is a scarcity of crude glycerin supply. Several traders have mentioned issues with taking on additional contracts for the fourth quarter, with others saying they were also having issues with third-quarter contracts.

This coincided with several reports of biodiesel producers slowing production. Most plants that are said to be slowing or idling are of a smaller size, but this was still described as cutting supply. In at least one case, the idling is due to planned maintenance, and the plant is expected to continue operating at full capacity after the work is completed.

One biodiesel producer speaking with Fastmarkets said the Renewable Fuel Standard (RFS) mandate this year is too low relative to expanding capacity, adding that it is leading to a strong surplus of credit production. Overproduction narrows margins and creates economic challenges to produce biodiesel.

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