Biodiesel imports will not harm producer margins

01 August 2007 15:42  [Source: ICIS news]

LONDON (ICIS news)--Imports of B99 biodiesel into Europe should not continue to drive regional prices down or put producers out of business, a German seller said on Wednesday.

 

Although producers feared the import of B99, the palm methyl ester biodiesel blend, from the US Gulf would cause over-supply in Europe and harm producer margins, quantities are not sufficient to create seriously impact prices, the seller said.

 

“In Europe, the biodiesel market is around 8m tonnes/year, while imports of B99 are about 300,000-400,000 tonnes/year,” the producer source said.

 

“Although this is still a large quantity, it is not enough to significantly impact the market.”

 

Biodiesel market players recently speculated that some European governments could independently take a stand against the imports by applying local taxes to the incoming product, deterring further arrivals.

 

However, it was unlikely that this would be necessary as long as the imports remained at their current volume, the source said.

 

Europe biodiesel producers include Biopetrol Industries, Petrotec and Greenergy.

By: Nicolette Allen
+44 20 8652 3214

< previous article(VIDEO – ICIS news Americas Lunchtime Bulletin 2 November 2009)

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly