28 May 2007 10:58 [Source: ICIS news]
Strong food demand from countries like India and China, production shortfall in Malaysia and Indonesia, as well as speculative activity have pushed May futures above the ringgit (M$) 2,660/tonne ($784.7/tonne) level, a regional biodiesel producer said on Monday.
“Palm oil stocks are low and sellers are under no pressure to negotiate,” said another regional biodiesel producer. The situation may not change until July when the palm oil production season begins, he added.
Prices of refined, bleached and deodorised (RBD) olein are at $800/tonne FOB (free on board)
At these prices, biodiesel producers cannot sell at below $800/tonne FOB south east Asia (SE Asia) while buyers in
Additionally B99, the subsidized biodiesel from the
Malaysian biodiesel producers are the worst hit in the current scenario, said a biodiesel seller. Malaysian product is subject to a 4.5% import tax in the
Exports from Singapore, which has a few large biodiesel plants coming up this year including Peter Kremer’s 100,000 tonne/year and Natural Fuel’s 600,000 tonne/year plant, will also not be taxed in the US or Europe.
However, Singapore-based biodiesel plants would have to import palm oil from either
Much of the Asian biodiesel industry is struggling at present and operating at very low rates, said regional biodiesel makers.
This is in sharp contrast to last year when palm oil prices in the region of $400/tonne and crude oil prices near $75/bbl had made biodiesel sector a lucrative one and attracted much investment.
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