14 December 2006 12:34 [Source: ICIS news]
LONDON (ICIS news)--Soya methyl ester-based (SME) biodiesel prices could take an upturn in mid-2007 after a sluggish few months due to expected stronger demand and better quality product, market sources said on Thursday. ?xml:namespace>
On the biodiesel spot market this week, sources reported that SME material had been sold at above $830/tonne ($629/tonne) FOB (free on board) Europe for May delivery even though prompt product was still reported at around $780-790/tonne FOB Europe, according to global chemical intelligence service ICIS pricing.
The anticipation of better quality SME available in May, due to the warmer weather and the product’s subsequently stronger cold properties, has led biodiesel consumers and traders to agree to higher prices for material with mid-2007 delivery, sources said.
Several biodiesel producers and converters were optimistic that this could be the start of an upturn in values, with some sources commenting that it was very encouraging to see Soya-based biodiesel reaching these kinds of prices in the light of recent product oversupply.
Other sources, however, were unconvinced that demand would be strong enough in 2007 to justify higher spot prices, with some adding that the market was currently flooded with SME offers, countered by very few bids.
($1 = €0.76)
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