13 May 2008 23:23 [Source: ICIS news]
HOUSTON (ICIS news)--Tallow oleochemical suppliers said on Tuesday they were puzzled by a new state mandate for B20 biodiesel that allows the use of tallow fats as a feedstock option.
Although the mandate will be meted out in gradual steps, US tallow glycerine and fatty acid producers were surprised by the inclusion of waste oils and tallow as feedstock possibilities.
“We thought this type of legislation was disappearing because of the move away from using food-based feedstock sources,” one supplier said.
Prices for tallow fats have more than doubled from early 2007. Bleachable fancy tallow BFT values jumped to about 36 cents/lb ($794/tonne or €508/tonne) in July 2007, passing that benchmark over the ensuing months to the low 40s cents/lb in current ?xml:namespace>
Higher priced fats have been blamed for rising prices in fatty acid and tallow-based glycerine, according to several market players.
C18 tallow-based fatty acid contract prices, which use BFT averages as a component, have increased about 15-20 cents/lb from May 2007, while tallow glycerine contracts are up about 50 cents/lb over the same period, according to global chemical market intelligence service ICIS pricing.
Tallow glycerine contracts are currently at 75-85 cents/lb.
Tallow-based C18 triple pressed stearic acid (TPSA) April contracts ranged at 57-60 cents/lb; C18:1 oleic acids ranged at 70-75 cents/lb.
According to the NBB, state legislature, biodiesel producers and other stakeholders will be involved in the approval process. This process is aimed at allowing players to gauge supply and demand impacts before increasing blends.
($1 = € 0.64)
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