Biodiesel surges up to $70/t on feedstock prices

27 February 2008 18:05  [Source: ICIS news]

LONDON (ICIS news)--The surge in European biodiesel prices of up to $70/tonne (€46.9/tonne) showed no signs of slowing due to upstream palm and vegetable oil highs, buyers and sellers said on Wednesday.

 

As palm oil values reached record highs following frenzied buying interest in Asia, players in the biodiesel market said prices had to soar accordingly.

  

Prices in the fatty acid methyl ester (FAME) market saw the largest jump, with increases of $70/tonne being felt across the market.

 

Prices were assessed at $1,250-1,290/tonne FOB (free on board) Rotterdam, according to global chemical market intelligence service ICIS pricing.

 

Volumes of rapeseed methyl ester (RME) also incurred an increase of $30/tonne this week, with expectations of a further rise.

 

Following fears among buyers that volumes of rapeseed methyl ester (RME) would breach the $1,500s/tonne level, prices were now pegged at $1,470-1,500/tonne FOB Rotterdam.

 

One player expressed concerns that the high prices would deter buyers.

 

One trader said the prices were called for and consumers could see the pressure the cost of raw materials was placing the market under.

 

With no idea of when prices would ease, most agreed the upward trend would not come to a halt any time soon.

 

($1 = €0.67)

 

For more on biodiesel read Simon Robinson's Big Biofuels Blog

By: Fiona Bond
+44 20 8652 3214

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