Europe biodiesel rises on higher feedstock

20 February 2008 17:48  [Source: ICIS news]

LONDON (ICIS news)--European biodiesel values continued to climb on Wednesday, amid record highs in vegetable oil prices.

 

As crude palm oil hit an all-time high on Tuesday with a rise of ringgits (M$) 152 ($47/tonne), players in the biodiesel market said the upward price trend was gathering pace.

 

Over the past fortnight, rapeseed oil methyl ester (ROME) values had gained more than $40/tonne, with traders predicting that prices would soon breach the $1,500/tonne FOB (free on board) NWE (northwest Europe) level.

 

Fatty acid methyl ester (FAME) followed suit, with sharp rises of up to $80/tonne felt across the market over the past two weeks, taking prices to $1,180-1,220/tonne FOB Rotterdam, according to global chemical market intelligence service ICIS pricing.

 

A source in the market said prices had to rise in accordance with feedstocks, as margins needed to be protected.

 

This sentiment was echoed by others who said despite protests from buyers, prices needed to reflect the current climate.

 

With little knowledge of when upstream costs would ease, it was difficult to say when buyers would receive the relief they desired.  

 

($1 = M$3.22)

 

Bookmark Simon Robinson's Big Biofuels Blog for some independent thinking on biofuels

By: Fiona Bond
+44 20 8652 3214

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