Glycerine Price Rebound in the German Market Supported By Supply Disruption and Healthy Demand

CFR Hamburg: According to the most recent data, Glycerine prices in Germany have returned to their increased price trend after a minor change in the previous month. Glycerine prices in Germany once more started to rise, bucking the declining trend due to continuous demand, high manufacturing costs, rising inflation rates, and supply issues in European ports. Glycerine prices in Germany recently increased by 1.78% this month. Rising seasonal demand from downstream pharmaceutical and healthcare sectors following impending seasonal shifts also supported the increased price trajectory for Glycerine.

Variable expenses on production prices increased due to rising inflation and high energy prices in the context of impending energy crises, particularly following the Nord 1 Stream pipeline explosion that transports natural gas from Russia to Germany. Additionally, energy surcharges by the European producers further advanced the upward cost pressure. With recent increases in orders and a shortage of availability of Glycerine in the local market, German buyers began trading, raising the price of Glycerine. The region also experiences a severe lack of transport and drivers due to the ongoing labor crisis caused by inflation. The continent's trade services were hampered by port backlogs brought on by cargo bunching and cancellations activities. Furthermore, Germany's amount of marine freight and road congestion has significantly impacted the Glycerine market price in the European region.

Also, the increased feedstock palm oil and edible oil prices in the major exporting countries like Indonesia and Malaysia influenced the Glycerine market globally. As production is reduced by excessive rain in major producing nations, palm oil prices are projected to rise further as demand rises for its usage in biofuels, food, and the healthcare sector. With supply chain disruption and port congestion in the European region, the market showcased robust sentiments.

According to ChemAnalyst, Glycerine demand will grow further due to seasonal changes as orders may increase this winter. While the government has requested enterprises to reduce their electricity use to save it for the home sector during the winter, production rates will remain moderate due to the energy crisis.