Southeast Asia led by Indonesia and Malaysia are accountable for the largest share of global crude glycerine exports, with Indonesia alone generating over 620,000 metric tons annually as a co-product of palm-based biodiesel. In 2026, the region's export volume is shaped by Indonesia's confirmed B40 mandate and the shelving of B50, a structural shift that cleared oversupply conditions from 2023–2024 without triggering a new supply flood. China absorbs the majority of regional crude glycerine exports, followed by India, making demand from these two countries the primary price signal for Southeast Asian sellers.

 

What Is Crude Glycerine and Why Does the Southeast Asian Supply Chain Matter?

Crude glycerine (HS code 1520.10) is the unavoidable co-product of biodiesel transesterification. For every tonne of biodiesel produced from vegetable oil, approximately 100 kg of crude glycerine is generated as a byproduct, it cannot be suppressed, slowed, or redirected independently of fuel production. In Southeast Asia, where biodiesel is made almost exclusively from crude palm oil (CPO), this structural linkage defines everything about crude glycerine supply: output levels, export timing, price floors, and the exposure of buyers to upstream policy shocks they may not be monitoring.

The region matters because no other part of the world combines the feedstock scale of Southeast Asia with the same export orientation. Indonesia and Malaysia together hold the majority of the world's productive oil palm estate. Their biodiesel plants generate crude glycerine volumes far in excess of what local refining infrastructure can absorb, which makes Southeast Asia structurally export-dependent for this product. For buyers in China, India, Japan, South Korea, and beyond, the terms on which crude glycerine leaves the Strait of Malacca corridor determine their landed cost, availability, and contract negotiating position.

Standard commercial grade for export is crude glycerine 80% minimum glycerol content (palm origin), typically brownish in color, with defined methanol, ash, and free fatty acid specifications. Some Indonesian biodiesel producers also export crude glycerine 85% minimum, which commands a modest premium and is preferred by refining buyers with tighter process tolerances.

 

Production Geography: Indonesia, Malaysia, Thailand, and the Tier Below

Indonesia. The Dominant Supplier

Indonesia is the largest single-country producer of crude glycerine in Asia-Pacific. National biodiesel production reached 6.2 billion liters in 2023, generating over 620,000 metric tons of crude glycerine as a co-product. With domestic biodiesel consumption under B40 reaching approximately 14.2 million kiloliters in 2025, crude glycerine output in Indonesia is structurally tied to palm oil crushing capacity and government blending mandates — not to glycerine market demand.

Production is concentrated on Java Island, particularly in and around Jakarta, Semarang, and Surabaya. Key exporters include Wilmar International's Indonesian operations, Musim Mas Group, Apical Group, and Permata Hijau — all of which operate integrated palm refining and biodiesel complexes. Wilmar's Indonesian expansion adds 40,000 tonnes of glycerine capacity to pursue food-emulsifier and polymer-polyol demand, reflecting a broader industry move toward upgrading crude streams. Major export ports are Tanjung Priok (Jakarta) and Tanjung Perak (Surabaya).

Malaysia. High Export Orientation, China Concentration

Malaysia's crude glycerine production is smaller than Indonesia's in absolute volume, but the country's export intensity is exceptional. China remains the key foreign market for crude glycerol exports from Malaysia, comprising 79% of total exports. India holds a second-place share of 8.1%. This concentration into a single buyer market is a structural vulnerability — when Chinese domestic glycerine supply improves (as it periodically does through domestic biodiesel upcycles), Malaysian exporters face sudden demand pullback with limited alternative channels to absorb volume.

KLK OLEO, IOI Oleochemical, and Ecogreen Oleochemicals are the dominant Malaysian crude glycerine producers, all operating from Port Klang and Pasir Gudang industrial complexes. Malaysia also functions as a transshipment and blending hub. Indonesia constitutes the largest supplier of crude glycerol to Malaysia, comprising 89% of total imports — meaning some Malaysian export volumes actually originate from Indonesian biodiesel plants before being consolidated or upgraded in Malaysia.

Thailand and the Philippines. Secondary Suppliers

Thailand and the Philippines are meaningful but structurally smaller contributors to Southeast Asia's crude glycerine export pool. China represents 90% of crude glycerol exports from Thailand, with Malaysia at 3.8% and Vietnam at 1.7%. The Philippines exports primarily to China as well, with a smaller flow to Japan and Thailand. Neither country has the plantation estate or biodiesel mandate scale to challenge Indonesia's position, but both supply glycerine derived from coconut oil processing, a compositionally different stream (lower methanol residual, lighter color) that certain specialty refiners prefer.

Production Capacity Summary

Country Crude Glycerine Output (est. 2025) Primary Feedstock Key Export Ports China Concentration
Indonesia ~650,000–700,000 MT Palm CPO (B40 mandate) Tanjung Priok, Tanjung Perak High
Malaysia ~300,000–350,000 MT Palm CPO, kernel Port Klang, Pasir Gudang Very High (79%)
Thailand ~40,000–60,000 MT Palm + soybean Laem Chabang, Bangkok Very High (90%)
Philippines ~20,000–30,000 MT Coconut oil Manila, Batangas Dominant

Sources: IndexBox, MarketDataForecast, GAPKI, MPOB. Volumes are production estimates; export volumes are lower due to domestic refining absorption.

 

The B40 Policy and What It Means for 2026 Crude Glycerine Volumes

The single most important policy variable for Southeast Asian crude glycerine supply is Indonesia's biodiesel blending mandate. Indonesia has postponed the B50 mandate and will maintain the current B40 blending requirement through the end of 2026, citing technical, fiscal, and market considerations. This decision, confirmed by Deputy Minister Yuliot Tanjung in January 2026, removed the most significant bullish supply catalyst the market had been pricing: a B50 roll-out would have required approximately 20.1 million kiloliters of biodiesel annually compared with B40's 15.6 million kiloliters.

The implications for crude glycerine buyers are direct. S&P Global estimated that full B50 implementation would have generated substantially more crude glycerine. Its removal from the 2026 supply forecast eased the bearish pressure on glycerine prices that the market had been building ahead of that announcement. In practical terms, the B40 maintenance means crude glycerine output from Indonesia in 2026 is approximately flat versus 2025, not the step-change increase that B50 would have brought. This is mildly supportive for prices, and explains why the net direction for crude glycerine pricing in 2026 is modestly upward from 2024 lows, supported by palm oil supply constraints in Southeast Asia and the structural clearing of 2023–2024 oversupply.

Indonesia will also raise the CPO export levy from 10% to 12.5% starting March 2026, with other palm oil products also raised by 2.5 percentage points. This levy increase affects CPO competitiveness in global markets but does not directly restrict crude glycerine exports that faces its own separate export tax regime and is not covered by the CPO levy framework.

 

Trade Flows: Where Southeast Asian Crude Glycerine Goes

China — The Price-Setting Buyer

China is the destination for the overwhelming majority of crude glycerine exports from every Southeast Asian producer. The country absorbs Indonesian crude glycerine at volumes roughly eight times what Malaysia receives from Indonesia. China constitutes 79% of Malaysia's crude glycerol exports. Chinese buyers are typically oleochemical refiners and epichlorohydrin (ECH) producers who convert crude glycerine into epoxy resin intermediates, propylene glycol, and other downstream chemicals.

Chinese demand for crude glycerine is not steady. It correlates strongly with ECH operating rates, which in turn track epoxy resin demand from construction and electronics sectors. Depressed housing markets globally have reduced requirements for epoxy resin, knocking demand for ECH and its glycerine feedstock. When Chinese construction activity softens — as it has during 2023–2025 — crude glycerine demand from Chinese ECH buyers falls, and Southeast Asian sellers must accept lower prices or find alternative buyers.

The dominant entry points into China are Lianyungang, Tianjin, and Guangzhou. Isotanks and flexibags shipped via mainline container vessels from Tanjung Priok or Port Klang are the standard logistics configuration.

India — The Growing Importer

India is the second most significant importer of crude glycerine from Southeast Asia. India imported 55,000 tonnes per annum of glycerine from south and southeast Asian trading partners in the year up to August 2023. India's glycerine demand comes primarily from pharmaceutical manufacturers (for USP-grade refined glycerine), soap producers, and an expanding personal care sector. Indian buyers typically purchase on CFR Hazira, Nhava Sheva, or Chennai terms.

India's own biodiesel programme is expanding — India's biodiesel output jumped 60% between 2024 and 2025, but utilization rose to only 59.8%, showing that feedstock access, rather than reactor capacity, sets the ceiling for incremental glycerine volumes. This means India's domestic crude glycerine supply is growing but not fast enough to displace Southeast Asian imports. Indian buyers remain structurally dependent on the Indonesia-Malaysia corridor.

Japan and South Korea — Refined Grade Importers

Japan and South Korea are smaller-volume but higher-specification buyers. Japan and South Korea import USP-grade volumes because local production is limited, directing Malaysian and Indonesian refiners to seek WHO-GMP certification to secure market access. These markets do not typically import crude 80% material; they buy refined or near-refined streams and are therefore more relevant to Malaysian integrated operators (KLK OLEO, IOI) than to pure crude glycerine sellers from Indonesian biodiesel plants.

Regional Trade Flow Matrix

Origin Primary Destination Secondary Destination Approx. Share to China Trade Route
Indonesia China India ~70–80% Tanjung Priok → Strait of Malacca → South China Sea
Malaysia China India ~79% Port Klang → Strait of Malacca → South China Sea
Thailand China Malaysia ~90% Laem Chabang → Gulf of Thailand → South China Sea
Philippines China Japan ~dominant Manila → Luzon Strait → East China Sea

Sources: IndexBox country-level trade data 2024; estimates for 2025–2026 flows.

 

Logistics: How Crude Glycerine Moves from Southeast Asia to Buyers

Transport Modes and Vessel Types

Crude glycerine 80% is classified as a non-hazardous liquid but requires specific handling. It is viscous at ambient temperature, hygroscopic, and prone to microbial contamination if water ingress occurs. The standard export configurations from Southeast Asia are:

Isotanks (ISO tank containers): The preferred mode for volumes below 500 MT. Standard 20-foot ISO tanks hold 21,000–25,000 liters of crude glycerine. Most Indonesian and Malaysian exporters offer ISO tank loading at Tanjung Priok and Port Klang respectively, with 15–21 day transit times to Chinese ports.

Flexibags: A cost-effective alternative for buyers accepting slightly higher contamination risk. A single 20-foot container fitted with a flexibag holds approximately 24,000–26,000 liters. Widely used on the Malaysia-China and Indonesia-China lanes.

Bulk liquid tankers: Used only for very large parcel sizes (typically 2,000+ MT) from major producers with dedicated tank farm infrastructure. Less common for crude glycerine than for fatty acids or refined glycerine.

Key Trade Corridors and Lead Times

The Strait of Malacca is the mandatory chokepoint for all Southeast Asian glycerine exports heading to Northeast Asia. All vessels loading at Tanjung Priok, Port Klang, Pasir Gudang, and Laem Chabang must transit this corridor. Any major disruption — piracy incidents, weather events, or navigational accidents directly affects lead times on Indonesia-China and Malaysia-China lanes.

Typical transit times from Southeast Asian origins to key buyer markets:

Origin Port Destination Transit Time (ISO Tank) Typical Freight Mode
Tanjung Priok (Jakarta) Lianyungang, China 12–18 days ISO tank via feeder to Singapore hub
Port Klang (Malaysia) Shanghai / Tianjin 10–14 days ISO tank direct or via Port Klang hub
Laem Chabang (Thailand) Guangzhou / Shenzhen 8–12 days ISO tank feeder via Singapore
Tanjung Priok Nhava Sheva (Mumbai, India) 10–15 days ISO tank or flexibag

Port Congestion Risk

Tanjung Priok has a documented history of periodic congestion. Logistical problems, particularly congestion at Tanjung Priok Port in late April 2025, exacerbated supply tightness and added to price pressure in Indonesia's glycerine market. Buyers with time-sensitive downstream schedules, particularly pharmaceutical refiners should build at least 7–10 days of buffer into their supply planning when sourcing from Indonesian biodiesel producers who rely on Tanjung Priok exclusively.

 

Supply Risk Assessment

Risk Summary Table

Risk Dimension Rating Primary Driver Trigger Scenario
Concentration Risk HIGH China absorbs 70–90% of all SEA crude glycerine exports Chinese ECH demand collapses → sellers cannot reroute volume
Policy Risk (Indonesia) MEDIUM B40 mandate; B50 shelved; CPO levy increases Mandate revision or levy shock affecting biodiesel operating rates
Feedstock Risk (Palm Oil) MEDIUM-HIGH El Niño drought cycles in Sumatra / Kalimantan Palm fruit output falls → CPO price spikes → biodiesel throughput constrained
Logistics Risk MEDIUM Tanjung Priok congestion; Strait of Malacca dependence Port disruption adds 7–14 days to lead time
Refining Capacity Gap STRUCTURAL Export-oriented crude grade, limited domestic upgrading Buyer market for crude grade weakens; no quick pivot to refined

Concentration Risk — HIGH

The structural over-reliance on China as the demand sink is the risk Southeast Asian crude glycerine sellers manage least well. When Chinese ECH plants cut operating rates as they did through 2023 and into 202, the Chinese buying price falls, and Indonesian and Malaysian exporters compete aggressively on spot, often below sustainable margins. Glycerine plants in Asia have run at half capacity and even lower during extended periods of ECH demand weakness. Buyers in China understand this leverage and use it during downturns.

For exporters, the answer is origin diversification into India, Japan, South Korea, and the Middle East. For buyers in those markets, this concentration risk in the other direction means they are competing against a dominant Chinese buyer in tight markets and benefit from supply relief when Chinese demand weakens.

Feedstock and Climate Risk — MEDIUM-HIGH

Palm oil availability sets the operating rate ceiling for Southeast Asian biodiesel plants — and therefore the ceiling for crude glycerine output. El Niño-related droughts in the Sumatra and Kalimantan regions reduced production of palm fruits and caused a rise in the price of crude palm oil, limiting feedstock availability for biodiesel producers and tightening crude glycerine export supply during 2025. When CPO prices rise above the economic blending point for biodiesel, plant operators in Indonesia face margin compression and sometimes reduce throughput, cutting crude glycerine output at exactly the moment global prices start to rise.

The Malaysian Palm Oil Board (MPOB) monthly production and stock data is the leading indicator that crude glycerine procurement teams should track for advance warning of palm-origin supply tightening. USDA FAS monthly Oilseeds reports provide a broader regional picture.

Indonesia Policy Risk — MEDIUM

Indonesia's biodiesel programme decisions are the single biggest supply-side variable for palm-based crude glycerine. The B50 announcement was shelved in January 2026, but the direction of policy remains toward higher blending over time. A reversal, whether upward (B50 reinstatement) or downward (mandate cut due to fiscal pressure on BPDPKS) would alter crude glycerine output trajectories. APROBI (Indonesian Biodiesel Producer Association) quarterly statements and Ministry of Energy mandate allocations are the key documents to monitor.

 

What Drives Crude Glycerine Prices in 2026

The Feedstock Co-Product Trap

Crude glycerine's price cannot be understood in isolation from biodiesel economics. The structural linkage means crude glycerine supply cannot be adjusted independently of biodiesel production. When biodiesel plants run at higher utilisation rates, more crude glycerine enters the market whether downstream buyers want it or not. This is the fundamental pricing constraint: Southeast Asian producers have no mechanism to produce less glycerine while producing more biodiesel.

The global average crude glycerine export price fell from USD 610 per ton in 2022 to USD 281 per ton in 2024 — a 54 percent decline driven by a supply flood as biodiesel capacity expansion outpaced downstream absorption. By late 2025, prices had partially recovered. In Q4 2025, crude glycerine FOB Port Klang (Malaysia, 80%) traded in the USD 505–520 per ton range, reflecting a 3.19% quarter-on-quarter decline driven by supply overhang from elevated palm oil processing alongside softening regional export inquiries.

Current Price Benchmarks (Q1 2026)

Grade and Origin Price (USD/MT) Delivery Basis Source / Period
Crude 80% — Indonesia FOB ~USD 742 FOB Tanjung Priok Intratec, January 2026
Crude 80% — Malaysia FOB USD 310–370 FOB Port Klang Market data Q4 2024–Q1 2026
Refined 99.5% USP — Indonesia USD 765–835 FOB Tanjung Priok ChemAnalyst Q4 2025
CIF India (crude 80%) USD 380–430 CFR Nhava Sheva Estimated incl. freight
CIF China (crude 80%) USD 330–390 CIF Lianyungang Estimated incl. freight

Note: Price spreads between Indonesian and Malaysian crude 80% reflect grade differences, origin purity variances, and local supply-demand balances. Verify current levels through ICIS, Intratec, or ChemAnalyst before transacting.

Key Price Drivers to Monitor in 2026

The table below identifies the primary variables moving crude glycerine prices in 2026 and their directional effect:

Variable Direction Impact Magnitude
Indonesia B40 maintained (B50 shelved) Neutral to mildly bullish Medium — removes supply flood risk
Palm oil supply constraints (El Niño legacy) Bullish Medium-High — limits throughput
Chinese ECH and epoxy demand recovery Bullish (if it materializes) High
HVO expansion globally (no glycerine co-product) Structurally bullish long-term Low in 2026
CPO export levy increase (12.5% from March 2026) Mildly bearish for CPO, neutral glycerine Low
Freight rate normalization Neutral to bearish Low-Medium

 

How Buyers Procure Crude Glycerine from Southeast Asia

Procurement Channel Options

Direct from producer: The most cost-effective channel for buyers purchasing 500+ MT per month. Indonesian and Malaysian biodiesel operators (Wilmar, Musim Mas, Apical, IOI Oleochemical, KLK OLEO) offer term contracts directly to qualified buyers with standard 90-day LC or usance LC payment terms. Minimum order quantities typically start at one ISO tank (21–25 MT) for samples, with contract volumes from 100–500 MT per shipment.

Trading companies: The dominant channel for volumes below 500 MT per shipment or for buyers requiring origin flexibility. Southeast Asian glycerine traders based in Singapore, Kuala Lumpur, and Jakarta aggregate volumes from multiple biodiesel plants and can offer blended or single-origin parcels. Trading companies also handle documentation, Certificate of Analysis (CoA), and Halal or RSPO certification when required.

Regional distributors: For buyers in India, the preferred channel is often an established chemical distributor in Mumbai, Ahmedabad, or Chennai who holds stock in-country and offers DAP terms. This reduces lead time risk and simplifies procurement for smaller buyers.

Contract vs. Spot Decision Framework

The crude glycerine market's structural tie to biodiesel policy creates a specific contract strategy recommendation: lock in term volumes when Indonesian policy uncertainty is high and spot premiums are low. The 2023–2024 oversupply period, when spot crude glycerine 80% from Indonesia briefly traded below USD 300/MT FOB, was the optimal window to establish index-linked term contracts that would protect buyers against a supply normalization. That window is now largely closed.

In 2026, buyers who are not yet on term contracts should prioritize locking in Q2–Q3 volumes before the second-half demand recovery from pharmaceutical and personal care sectors typically tightens spot availability. For term contracts, index-linking to ICIS or S&P Global's Southeast Asian crude glycerine price assessments provides better risk distribution than fixed-price contracts given the volatility of the upstream palm oil market.

Origin Diversification Strategy

Over-concentration in a single origin,  particularly Indonesia-only exposes buyers to simultaneous logistics and supply shocks. The April 2025 Tanjung Priok congestion event illustrated this: buyers relying exclusively on Indonesian biodiesel plants faced 10–14 days of additional delay during a period when prices were already rising. The mitigation strategy is to qualify Malaysian suppliers as a second origin and maintain the ability to shift at least 30% of contracted volume between Indonesia and Malaysia on 30-day notice.

For buyers in India, Brazil-origin crude glycerine (soy-based, lower methanol, different compositional profile) is a viable seasonal alternative when Southeast Asian FOB prices spike and Brazilian origins are competitive on CFR terms. Brazilian soy-based crude glycerine is not interchangeable on a specification basis for all end uses — the ash content and fatty acid profile differ from palm-origin material, but for industrial applications and ECH feedstock, Brazilian origin is often acceptable.

 

What's Changing in Southeast Asian Crude Glycerine Trade

Refining Capacity Build-Out Is Thinning the Export Pool

The most structural change in the Southeast Asian crude glycerine supply chain is the expansion of domestic glycerine refining capacity, particularly in Indonesia. Indonesia's refining expansion represents a structural turning point for the crude glycerine market. Demand is increasingly anchored by industrial refining needs rather than fluctuating biodiesel economics, creating contract-driven and volume-based consumption that absorbs crude glycerine regardless of short-term fuel market movements.

As more Indonesian biodiesel operators add on-site purification, converting crude 80% into refined 99.5% or 99.7% material for pharmaceutical and personal care export the volume of crude-grade material available for export to China and India gradually declines. Southeast Asian complexes operated by Wilmar, KLK OLEO, and Emery leverage palm splitting to deliver direct food or pharma-grade streams. Buyers relying on crude grade availability from Indonesia over the next three to five years should factor this structural thinning into their sourcing strategy.

HVO Expansion and the Long-Term Supply Question

Hydrotreated Vegetable Oil (HVO) — increasingly deployed as a renewable diesel co-processing stream in Europe and North America — produces no glycerine co-product. As HVO capacity displaces FAME (Fatty Acid Methyl Ester) biodiesel globally, the volume of crude glycerine generated per litre of renewable fuel produced falls. HVO's rapid scale-up erodes FAME's share of renewable diesel and thus trims future crude-glycerin generation. This is not yet a 2026 problem for Southeast Asian exporters — the region remains overwhelmingly FAME-based — but it is the structural trend that will define crude glycerine availability from Europe and the US over the next decade, indirectly increasing the value of Southeast Asian FAME-origin crude glycerine in global markets.

 

Summary and Buyer Action Steps

Five findings this article is built on:

  1. Indonesia generates approximately 650,000–700,000 MT of crude glycerine annually under the B40 mandate, with B50 shelved until at least 2027 — meaning 2026 output is flat rather than surging.
  2. Malaysia and Thailand together add roughly 350,000–400,000 MT to Southeast Asian export supply, but with dangerous destination concentration: 79–90% of each country's crude glycerine exports flow to China.
  3. Crude glycerine 80% FOB prices from the region have partially recovered from 2024 lows, trading in the USD 310–742 range depending on origin and grade, with Indonesian FOB prices at a notable premium to Malaysian FOB reflecting different demand-supply balances.
  4. Tanjung Priok congestion and Strait of Malacca dependence are the primary logistics risks; both materialized in 2025 and both are persistent rather than one-off events.
  5. The structural build-out of domestic glycerine refining in Indonesia is gradually reducing crude-grade export availability — a supply thinning that will accelerate over 2026–2030.

Three concrete recommendations for buyers:

1. Establish term contracts for H2 2026 volumes now. The spot market will tighten if Chinese ECH demand recovers through Q2–Q3. Buyers waiting for further price softening are misreading the 2026 fundamental B50's removal eased the most bearish supply scenario, but it did not reinstate the 2023–2024 oversupply conditions. Lock in term contracts with Indonesian or Malaysian producers on index-linked terms and negotiate a second origin clause to allow Malaysia/Indonesia switching on 30 days' notice.

2. Qualify two Southeast Asian origins. Single-origin Indonesia procurement is cheaper to administer but creates unacceptable logistics concentration risk given Tanjung Priok's track record. Qualifying a Malaysian supplier either KLK OLEO, IOI, or a Singapore-based trading company with Port Klang access as a 30–40% alternative origin costs nothing and materially reduces lead time exposure.

3. Track MPOB palm oil data monthly. The Malaysian Palm Oil Board publishes production and stock data monthly. A 10%+ decline in palm oil production in Sumatra or Kalimantan — whether El Niño-driven or disease-related  will translate into tighter crude glycerine output within 60–90 days. Teams that see the signal early can buy forward or extend contract terms before the spot market reacts.

 

Frequently Asked Questions

What is the typical specification for crude glycerine exported from Southeast Asia?

The standard export grade is crude glycerine 80% minimum glycerol content (by weight), palm origin, with limits on methanol (typically 0.2–0.5% max), ash content (2.5% max), and free fatty acids. Indonesian exporters also offer crude glycerine 85% minimum at a modest premium. CoA documentation and Halal certification are routinely available from major Indonesian and Malaysian producers.

Why is Indonesian crude glycerine more expensive than Malaysian crude glycerine on a FOB basis?

The price differential reflects different supply-demand balances at each origin. Indonesia has a larger domestic refining sector absorbing more crude glycerine domestically, and logistics costs at Tanjung Priok for containerized ISO tanks are higher than at Port Klang. Malaysia's supply overhang from elevated palm oil processing has historically suppressed Port Klang FOB prices relative to Indonesian origins.

What payment terms do Southeast Asian crude glycerine exporters typically offer?

The industry standard is an irrevocable Letter of Credit (LC) or usance LC with 60–90 days' sight. Some established relationships operate on TT (telegraphic transfer) against documents for buyers with a track record. Letters of Credit issued from first-class international banks are preferred; buyers using domestic bank LCs in smaller markets may face surcharges or be directed toward trading company counterparts.

How does the Indonesian CPO export levy increase in March 2026 affect crude glycerine prices?

The CPO levy increase (from 10% to 12.5%) affects crude palm oil and refined palm oil products directly. Crude glycerine is classified separately under HS 1520.10 and faces its own export duty schedule — it is not covered by the CPO levy revision. The indirect effect is that higher CPO export levies reduce Indonesia's CPO export competitiveness, which may redirect some CPO into domestic biodiesel production (supporting glycerine output), but this is a secondary effect and unlikely to materially change crude glycerine export pricing in 2026.

Is Brazilian crude glycerine a viable alternative to Southeast Asian supply?

For buyers in India who primarily need crude 80% for industrial applications, Brazilian soy-based crude glycerine is occasionally competitive on a CFR basis when Southeast Asian FOB prices spike. The compositional profile differs. Soy-origin crude glycerine has lower ash content and a different fatty acid residue profile than palm origin. Buyers must confirm specification acceptability with their downstream process before substituting. Logistics lead times from Brazilian origins to Indian ports are 20–28 days versus 10–15 days from Southeast Asia, making Brazilian origin a supplementary rather than primary alternative.