Traders see firm prompt prices for Europe biodiesel

18 June 2008 17:12  [Source: ICIS news]

LONDON (ICIS news)--European traders said they saw firm prompt prices for domestic biodiesel on Wednesday, with a backwardated market heading into the second quarter.

 

“We hear of delays in imports caused by shipping issues in Houston and the farmers’ strike in Argentina and see around $5/tonne backwardation in the market for each week from now until mid-August,” said one trader.

 

Rapeseed methyl ester (RME) prices were offered close to $1,700/tonne (€1,088/tonne) FOB (free on board) NWE (northwest Europe) this week, firming from the mid-$1,600s/tonne FOB NWE earlier in the month. 

 

Further ahead, prices were quoted around $1,660/tonne FOB NWE for August.

 

On fatty acid methyl ester (FAME) offers were heard in the high $1,500s/tonne FOB Rotterdam range, up from mid $1,500s/tonne FOB Rotterdam in early June.

 

There was a wide gap between bids and offers, with uncertainty over how volatile upstream vegetable oil and crude oil pricing would develop.

 

“The price spread between buyers and sellers is huge. Yes the spot market is active but most of the trades I have seen have been for smaller volumes,” added another trader.

 

($1 = €0.64)

 

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By: Edward Cox
+44 20 8652 3214

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