07 June 2013 10:07 [Source: ICIS news]
LONDON (ICIS)--European Renewable Energy Directive (RED) certified fatty acid methyl ester (FAME) 0 premiums over ICE gasoil have increased on limited availability of RED-certified soybean methyl ester (SME) and RED-certified palm methyl ester (PME), according to sources late on Thursday.
FAME 0 RED premiums were at $340-350/tonne (€258-266/tonne) FOB (free on board) Rotterdam, compared with $310-330/tonne FOB Rotterdam the previous week.
FAME 0 blends tend to be produced as a mix of SME and PME, but fewer volumes are entering Europe following the European Commission’s antidumping investigation into biodiesel volumes from Indonesia and Argentina, and the subsequent introduction of antidumping duties on biodiesel from the two countries.
PME and SME are being offered for very high premiums, according to one source, but those with volumes of either are generally opting to keep hold of the product to cover their own needs.
As a result, FAME 0 premiums have firmed, with the price gap between it and the typically more expensive RED-certified rapeseed methyl ester (RME) narrowing.
“Everyone’s looking for FAME 0 – there’s no RME demand,” one source said.
($1 = €0.76)
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