Trading picks up for Europe FAME/RME biodiesel

17 July 2007 16:16  [Source: ICIS news]

LONDON (ICIS news)--Activity on the European biodiesel market has picked up rapidly over the past few weeks and is set to increase further as liquidity improves, biodiesel traders said on Tuesday.

Several trades have been reported this week across the biodiesel feedstock sectors, with fatty acid methyl ester (FAME) biodiesel remaining the most active, as the market becomes more liquid and transparent, sources said.

Three trades have been publicly disclosed this week on the FAME 0 cfpp (cold filter plugging point) market since Thursday, with bids and offers emerging progressively higher on strong offtake.

Deals for 4,000 tonnes of FAME 0 cfpp have been confirmed since Monday at $880/tonne FOB (free on board) Rotterdam for July, while September trades were reported at $870/tonne FOB Rotterdam and $875/tonne FOB Rotterdam.

Demand for FAME 0 cfpp product was strong at this time of the year, due to its relative cheapness in comparison with -5 and -10 cfpp FAME as well as rapeseed methyl ester (RME), which all have stronger cold properties, making them more preferable for winter use.

Higher buy and sell interest has also been noted for RME, in spite of the firmer prices paid for the product.

RME trades were reported this week at $955/tonne FOB Rotterdam for July material, according to global chemical market intelligence service ICIS pricing, with offers at up to $985/tonne FOB Rotterdam, in comparison with offers heard in a $920-940/tonne FOB Rotterdam range last week.

Europe biodiesel producers include Biofuels Corp, Greenergy and Oleon.

By: Nicolette Allen
+44 20 8652 3214

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