15 August 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--Renewable Energy Directive- (RED-) certified rapeseed methyl ester (RME) and RED-certified fatty acid methyl ester (FAME) 0 premiums over ICE gasoil softened slightly this week, ICIS data showed on Friday.
However, sources said the decreases were largely insignificant when compared to the sharp increases seen last week, and that the markets are still considered strong.
One trader said last week’s sharp upward trend had probably got the market overexcited, and that a mild correction downwards was not surprising.
Another trader noted that the bean oil versus gasoil spread has weakened, and that this may also have contributed to the lower biodiesel premiums.
The markets are at firm levels because of good demand, as is typical in summer, and limited supplies.
RED-RME premiums over ICE gasoil were assessed at $340-355/tonne (€255-266/tonne), down $20-30/tonne, and RED-FAME 0 was assessed at 300-320/tonne, down $10/tonne.
($1 = €0.75)
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