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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News & Analysis - News & market analysis specifically relating to Biodiesel
Breaking news of latest developments affecting the markets.
Insight and analysis of factors driving prices.
Asian palm methyl ester (PME) prices trended down in December and largely remained at below $900/tonne FOB (free on board) southeast (SE) Asia in January. However, prices have been on an uptrend since February, tracking increases in the crude palm oil market.
Producers kept their selling indications high in February and March, citing squeezed margins. However, buyers showed resistance to high prices and discussions slowed down as the stalemate continued.
Updated to mid-April 2014
European rapeseed methyl ester (RME) and fatty acid methyl ester (FAME) 0 premiums traded at parity for most of the quarter, with European anti-dumping duties on biodiesel originating in Argentina and Indonesia limiting availability of blendstock palm methyl ester (PME) and soybean methyl ester (SME) usually used in FAME 0 blends.
As a result, the main component of FAME 0 blends has been RME, leading to the equal premiums in the market, with some producers offering RME options on FAME 0 contracts.
Outright biodiesel prices decreased at the beginning of Q2 on softer feedstock costs. However, these values firmed towards the end of the Q2 on tight supply of the old rapeseed crop ahead of the new one hitting the market.
In addition, values were supported by higher ICE gasoil prices caused by concerns over crude oil supply amid tensions in Iraq.
Towards the end of the quarter, the European Energy Council decided to implement a 7% cap on the use of first generation biofuels towards EU biofuels targets.
Updated to Q2 2014
In Latin America, the Argentine Senate has approved a complete tax exemption for biodiesel production. The bill was passed with 63 votes in favour and 2 abstentions, and means producers of biodiesel will no longer be liable for a 22% domestic tax on electricity production and the 19% tax on blending with fuels. The exemption expires on 31 December 2015, but can be extended up to 2024. The EU in November 2013 set biodiesel duties at an average of 24.6% for Argentina and imposed similar tariffs on Indonesian biodiesel. The Minister of the Economy late on 9 May reduced the export taxes by about half. The export tax was reduced from 21.75%, the rate since August 2012, to 11.06%.
In Brazil, the country announced it will increase the amount of biodiesel that must be blended into diesel to 6% in July and to 7% in November. Changing the blend rate has been discussed for years but faced resistance from parts of the government amid fear of rising inflation.
Meanwhile in the US, the fate of the Renewable Volume Obligations (RVO) and reinstatement of the biodiesel tax incentive is the main focus for players in the US market. The American sector is anxious to reinstate the $1 per gallon biodiesel tax incentive that expired on 31 December 2013 and the federally mandated blending volumes. The future of that incentive and blending volumes are considered to be critical by most biodiesel producers.
Updated to Q2 2014
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.