Recently, domestic glycerin market price has been rising continuously and market supply is tightening. According to market monitoring data, as of October 15, 2024, the domestic market price of 95% glycerol content was at RMB 5,500 per ton, up 2.8% from yesterday, 14.58% from the same period last week, 20.88% from the same period last month, 25% from the last quarter, and 42.86% from the price at the beginning of the year.

Analysis shows that the price of glycerin is mainly affected by the following factors:

First, the rising cost of raw materials. In recent years, affected by the environmental protection policy, the price of palm oil and other glycerin raw materials continued to rise, pushing up the production cost of glycerin.

Second, the downstream demand is strong. With consumers' emphasis on health and natural products, the demand for glycerin in food, medicine, cosmetics and other fields continues to grow.

Third, supply is tight. Affected by the environmental protection policy and the rising cost of raw materials, some glycerin producers reduced or stopped production, resulting in tight supply in the market.

Fourth, the price of substitutes is rising. Glycerol substitutes such as propylene glycol and other prices are also rising, further pushing up the price of glycerol.

Industry insiders said that the price of glycerol will remain high in the short term, but with the launch of new production capacity and the slowdown of downstream demand, the price is expected to fall back gradually.

Overall, glycerol industry is experiencing a new round of change. Under the background of tightening environmental protection policy and strong downstream demand, glycerin industry is expected to usher in a new round of development opportunities. But at the same time, the industry is also facing challenges such as rising raw material costs and intensifying market competition.

Looking ahead, glycerol industry is expected to realize high-quality development through technological innovation and industry chain integration. Meanwhile, industry players also need to strengthen cost control and improve competitiveness to cope with market fluctuations.