Chemrez says sales of glycerine at record high

Biodiesel and resin manufacturer Chemrez Technologies Inc. on Monday said its sales of glglycerine and coco-methyl esters have risen to record highs due to a shortage of supply in the global market. In a statement, Chemrez chief operating officer Jun Lao said the firm is now earning about $550,000 per month from the export of 400 to 600 tons of glycerine and about 220 tons of non-fuel CME for the soap and detergent industry. Glycerine is a by-product from the manufacture of biodiesel and other CME products and is used to make medical and pharmaceutical products, as well as toothpaste and paint; while oleochemicals processed from CME are used to make foam boosters in shampoos, and surfactants in detergents. Chemrez currently exports glycerine to China , India , Malaysia and other countries in Southeast Asia while its coco-methyl ester products are shipped to Japan . Exports to Europe may also begin next month. “Our image overseas is also getting better as clients overseas begin to appreciate the high quality of our products and the reliability of our supply," said Lao. Lao added that outside of the Philippines, “Chemrez might well be the only successful and fully operational biodiesel plant in Asia." The company official explained that newly built biodiesel plants in Malaysia, Indonesia , Australia and Singapore that intended to produce palm-biodiesel for Europe are not operating due to a glut in the EU market. The recent rally of palm oil prices also make biodiesel prices from these countries too prohibitive. Since these plants are not operational, they also cannot produce glycerine since it is a by-product of biodiesel production. “Where the anticipated glycerine produced by these biodiesel plants are not forthcoming, there exists a market shortage—hence the sudden rise in world glycerine prices," Lao said. Aside from the export market, Lao said Chemrez has Philippine demand for glycerine worth P6.5 million per month to serve. The firm has a leading 30 percent market share for glycerine in the country where there are about three to four other oleochemicals producers. - GMANews.TV