19 April 2011 04:07 [Source: ICIS news]
SINGAPORE (ICIS)--Malaysia’s March biodiesel exports rose by 61 tonnes or 81.3% month on month, following a drop in prices of feedstock crude palm oil (CPO), palm oil traders said on Tuesday.
According to data from the Malaysian palm oil board, a total of 75 tonnes of biodiesel was exported in March, up from 14 tonnes in February.
Market participants attributed the hike in exports to a fall in prices of CPO.
“When CPO prices fall, palm oil-based biodiesel becomes more attractive as compared to other vegetable-based biofuel,” a Singapore biodiesel trader said.
A Malaysian producer said, “Although biodiesel from Malaysia is about 20% more expensive than Indonesia, the pick up in exports is a welcomed relief.”
Biodiesel in Malaysia is approximately 20% more expensive compared with biodiesel produced in Indonesia.
This is because the Indonesia government has mandated a CPO export tax of 20-21% in a bid to prevent CPO exports, resulting in a boom in downstream palm oil products, which are not subject to export taxes.
“While we still can’t be on par with Indonesian-produced biodiesel, the falls in CPO prices will give Malaysia’s biodiesel industry a much needed boost,” the Malaysian producer added.
CPO prices were traded at Malaysian ringgit (M$) 3,299/tonne ($1,092/tonne) in the morning session of trade on 19 April, down M$129/tonne from the same period a month ago.
($1 = M$3.02)
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