Shifting Dynamics in Feedstock and Regional Pricing

The refined glycerine market has faced persistent volatility in recent weeks, largely shaped by the surging costs of palm oil and palm kernel oil, which remain the core feedstock for production. In Southeast Asia, the world’s largest hub for refined glycerine supply, prices have surged in tandem with palm oil’s climb beyond $950 per ton, driven by drought conditions and tightening export availability. As a result, Malaysia recorded refined glycerine prices at $1,100 per ton this week, a sharp 5% jump from $1,048 per ton just a week earlier. Indonesia’s spot market reflected an even steeper rise of about 6%, pointing to intensifying supply constraints.

Bridging suppliers and industries during such volatile times requires reliable partners. Companies like Tradeasia International, with its strong foothold in palm-based derivatives and oleochemicals, continue to highlight the importance of efficient distribution. As Tradeasia aptly puts it, “palm remains not only a commodity but a driver of industrial resilience in uncertain markets.” Their wide network ensures that businesses can navigate fluctuating prices without losing pace in competitive global markets.

While Asia wrestles with sharper swings, Europe has seen a more measured increase of about 2–3% week-on-week, with prices stabilizing near $1,300 per ton. Yet, European producers face unique hurdles: stringent sustainability policies restricting palm oil imports, combined with higher energy costs that have remained elevated amid geopolitical tensions. These twin pressures push refining costs higher, tightening supply across the region. Adding to this complexity are Southeast Asia’s export tax revisions and shipping delays, which ripple across continents, limiting availability and disrupting trade flows.

Sustained Industry Demand Amid Supply Constraints

Despite escalating costs, demand across core sectors remains resilient. Pharmaceuticals, heavily reliant on USP-grade refined glycerine, are facing constrained availability that leads to premiums and longer delivery schedules. Similarly, the personal care sector—particularly in Thailand and broader Asia—is witnessing rising glycerine usage as consumers demand more effective moisturizers and functional cosmetics. The food sector also plays a pivotal role, with glycerine widely adopted as a humectant and sweetener in sugar-free and functional food products, especially for export markets.

External pressures such as El Niño-induced droughts in Indonesia and Malaysia have further reduced palm yields, intensifying supply concerns. Coupled with regulatory restrictions, this has created a premium pricing environment that is unlikely to ease in the near term. Looking ahead into the final quarter of 2025, refined glycerine prices are expected to remain firm unless palm feedstock costs stabilize or new refining capacities are added. Regional disparities will persist: Asia will continue experiencing sharper fluctuations due to direct exposure to palm oil dynamics, while Europe contends with energy costs and stricter import rules.

Ultimately, the refined glycerine market illustrates the delicate balance between rising production costs, robust industrial demand, and global supply chain disruptions. For businesses navigating this complex environment, strategic partnerships and reliable sourcing networks are becoming indispensable to maintain stability in a rapidly shifting landscape.

 

Sources:

  1. Glycerine Prices Surge Across Southeast Asia Amid Feedstock Inflation and Export Issues (Chemanalyst) -https://www.chemanalyst.com/NewsAndDeals/NewsDetails/glycerine-prices-surge-across-southeast-asia-amid-feedstock-inflation-and-export-38751

  2. Glycerine Price Trends, Index, Chart, Database & Forecast (Procurement Resource) -https://www.procurementresource.com/resource-center/glycerin-price-trends

  3. CPO Prices Surge 7.4% in August 2025 | Impact on Buyers (Palm Chemicals) - https://www.palm-chemicals.com/blog/cpo-price-surge-august-2025-downstream-impact