Biodiesel Prices, markets & analysis
The ICIS global biodiesel report gives you the complete view of the global biodiesel market and ability to track the market movements, regardless of whether you are located in Asia, Europe or the Americas.
The comprehensive report enables you to quickly assess the markets and gain deeper insight on the ever-changing biodiesel markets.
Global biodiesel prices are also available via FTP.
Use ICIS information to:
- Analyse price drivers and fluctuations
- Make informed business decisions
- Confidently negotiate deals when doing business globally
Biodiesel Overview Transcript
In the US biodiesel is an emerging market. It was reduced to about 10% of its production capacity, as the Federal tax credit disappeared and has now reappeared.
With the reappearance of that, biodiesel is beginning to find its footing in the US market.
The material is highly dependent on the crude oil markets, it’s traded at a premium to heating oil, the spread on heating oil sets the prices for biodiesel that is, being looked at for basis on trading on spot market. There are no contracts in the US biodiesel markets at this time.
The market is also dependent on the crude-glycerine co-product and that material is also watched very closely for its availability for sales.
Most of the biodiesel in the US right now is traded at a premium, a spread to heating oil. The heating oil market, that has been the most successful area for domestic biodiesel sales as a blendstock it’s still finding its feet. It’s coming back into viability on the back of a reinstatement of the Federal tax credit $1/gal blender credit.
It’ll offer the players in the market more opportunity to find domestic sales for the product.
Biodiesel news and market information products from ICIS
We offer the following regional Biodiesel coverage to keep you informed of factors and developments affecting prices in the Global Biodiesel marketplace.
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Breaking news of latest developments affecting the markets.
Insight and analysis of factors driving prices.
Asian palm methyl ester (PME) prices generally showed a downtrend in September, as crude palm oil prices fell, leading to lower costs of production. Sales were extremely good as gasoil prices in Europe increased, lending to higher buying acceptance of prices and hence profitable margins for the producers.
However, PME prices showed an uptrend in October as palm oil prices increased, resulting in higher offers.
Updated to mid-November 2013
European spot values were range-bound just below $1,300/tonne CIF ARA towards the end of August, with the holiday period and some ongoing length stalling the upward momentum seen earlier in the month in line with gains seen in both Asia and the US. The September contract was settled at $1,296/tonne FOB NWE, up $39/tonne from the previous month.
Values gradually lost ground over the course of September in line with lower Asian and US pricing as well as losses on crude oil futures. The October contract settled at $1,254/tonne FOB NWE, with weak derivative demand also weighing down on sentiment.
The fourth quarter saw US and European pricing move down to yearly lows amid weak sentiment. There was a lack of clear direction owing to poor offtake and macroeconomic concerns. The European November contract came down $87/tonne to settle at $1,167/tonne FOB NWE, and prices continued to ebb and flow with the US market, but overall activity was thin.
Updated to mid-November 2013
The Argentine biodiesel market has been focused on anti-dumping duties to be imposed by the European Union, effectively halting imports into Argentina’s largest export destination.
The European Commission (EC) disclosed a proposal for higher definitive anti-dumping duties against biodiesel imports from Argentina.
Last May the EC imposed temporary tariffs on imports of soy methyl ester (SME) from Argentina with a tariff rate of 6-10%. The new rates heard in the market are much higher, 22-25%, according to sources in the region.
Argentine SME sales to Europe, the main foreign buyer for local producers, have plummeted since May, when the EU set provisional tariffs for import.
US biodiesel values have remained on a downtrend since mid-August as the heating oil bean oil (HOBO) spread followed the energy complex and crude oil prices lower. Additionally, the sector has been subdued as the market remains concerned about the US Environmental Protection Agency’s (EPA) proposal to limit the federally mandated renewable volumes for 2014.
If the renewable volumes for 2014 resemble the numbers in a leaked EPA draft circulated last month, it means a significant reduction in volumes for the biodiesel industry. The EPA is expected to release its proposed biofuel targets for 2014 sometime this month and producers are anxiously awaiting what could mean serious change for the industry.
Updated to mid-November 2013
The ICIS global biodiesel report offers weekly spot prices and market developments on all mainstream grades of biodiesel in Asia, Europe, US and Argentina, all in one publication.
The report includes price quotes for rapeseed methyl ester (RME), soy methyl ester (SME), fatty acid methyl ester (FAME) and palm methyl ester (PME).
The spot price assessments are based on FOB (free on board) NWE (northwest Europe), FOB Rotterdam, CIF (cost, insurance & freight) ARA (Amsterdam-Rotterdam-Antwerp), T2, FOB Rosario, FOB Midwest, FD (free delivered) Midwest, FOB USG (US Gulf) and FOB SE Asia (southeast Asia).
In addition, it provides key transaction summaries and production news, including plant operating rates, new plant capacities, start-ups, scheduled and unplanned shutdowns.
Contract prices of feedstocks such as vegetable oil, ICE gasoil and crude glycerine are also included for reference.
All the price assessments are generated based on information collected from producers, distributors, traders and end-users, among other sources, collected by locally based editors throughout the week.
ICIS collects pricing data on a wide range of chemical, energy and fertilizer products, including Biodiesel. Our extensive experience in price reporting means we can offer you access to historical data dating back more than 20 years for certain commodities.
Our time series of pricing data enable you to build and model trends, to get a view of where markets might be heading. The data service includes charting functionality, allowing you to chart and download multiple data series for manipulation in your own internal models. You can also export data to Excel via the ICIS dashboard service.
ICIS price assessments are based on information gathered from a wide cross-section of the market, comprising consumers, producers, traders and distributors from more than 250 reporters world-wide. Confirmed deals, verified by both buyer and seller, provide the foundation of our price assessments.
Our in-depth market knowledge drives our specialist focus, as we recognise the importance of individual market dynamics and not a one-size-fits-all approach.
Over 25 years of reporting on key chemicals markets, including Biodiesel, has brought global recognition of our methodology as being unbiased, authoritative and rigorous in preserving our editorial integrity. Our global network of reporters in Houston, London, Singapore, Shanghai, Guangzhou, Mumbai, Perth and Moscow ensures unrivalled coverage of established and emerging markets.