28 February 2013 23:59 [Source: ICIS news]
Outright prices for rapeseed methyl ester (RME) Renewable Energy Directive (RED) softened by $39-54/tonne (€30-41/tonne) to $1,238-1,289/tonne FOB (free on board) NWE (northwest Europe).
Market participants said there is good off-take of biodiesel production in northwest Europe and parts of the Mediterranean. However, the German market remains stagnant, and the market is uncertain of production levels in Spain.
In reaction to the European Commission’s likely move to impose anti-dumping duties on biodiesel from Argentina and Indonesia, many are now looking to buy palm oil and process it in Europe.
Sources said importing Malaysian palm oil is appealing as it avoids the risk of anti-dumping duties and is also attractive price-wise.
A source said one major is already planning to use palm oil as a feedstock and will be producing PME in March, with other producers likely to follow suit.
The Malaysia Palm Oil Board’s weekly report of palm product prices showed crude palm oil averaged $860/tonne CIF (cost, insurance and freight) Rotterdam during the fourth week of February.
($1 = €0.76)
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