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.
Updated to Q1 2015
Spot export prices of palm methyl ester (PME) biodiesel in the southeast (SE) Asian market have been fluctuating in line with feedstock crude palm oil (CPO) and energy costs.
On 8 January export prices rose by $20/tonne at the high end to $650-720/tonne FOB (free on board) SE Asia, according to ICIS data, reaching levels at $670-750/tonne FOB SE Asia on 15 January.
Market sources said there were no firm discussions heard in the market with limited buying ideas available. However suppliers expressed higher selling ideas at $720-750/tonne FOB SE Asia for January shipment because of increases in raw material CPO prices due to severe weather conditions.
At the end of January the buy-side lowered its buying ideas to $580/tonne FOB SE Asia based on price drops in the gas oil market.
By the end of March export prices of PME biodiesel were mixed, on the back of buy-sell ideas.
On 26 March export prices rose at the low end by $85/tonne but fell by $10/tonne at high end to $685-710/tonne FOB SE Asia, compared to the previous week, according to ICIS data.
The published price range narrowed as some players started some firmer discussions amid improved demand at $685-710/tonne FOB SE Asia for April cargoes.
Sources said that workable selling ideas or offers were largely at $700-710/tonne FOB SE Asia, based on some decreases in CPO prices.
According to Bursa Malaysia, CPO prices as of 18:30 Singapore time on 26 March were at $590.49/tonne, down by $6.81/tonne compared to the previous week.
Updated to Q1 2015
The spot European biodiesel market has had an extremely quiet first quarter, with market conditions so sluggish that producers curbed operating rates.
Despite lower production in Europe, the market is yet to tighten, with buying interest at very low levels.
Although buying interest tends to be seasonally quieter during the first quarter, this year the lack of demand has been exacerbated by the introduction of new biofuels legislation in Germany in January.
German buyers have remained out of the market for most of the quarter, having covered their needs previously amid market uncertainty over how the new legislation would work.
Germany switched from a biofuels blending mandate to a greenhouse gas (GHG) emissions saving target at the beginning of the year.
Prices have fluctuated amid volatile ICE gasoil values, which have been tracking movements in the crude oil markets.
The weaker crude oil price has not had any other real effect on the European biodiesel market, which is covered by a blending mandate, ensuring a certain level of buying interest.
Updated to Q1 2015
In the US, the fate of the Renewable Fuels Standard (RFS2) mandated blending volumes has been the main focus for players in the US market. The American sector is anxious to get a final ruling on the federally mandated blending volumes. The future of that incentive and blending volumes are considered to be critical by most biodiesel producers. The US Environmental Protection Agency (EPA) proposed in to maintain the biomass-based diesel standard for 2014 and 2015 at the 2013 level of 1.28bn gallons. In late November, the EPA announced it would not be finalising the 2014 Renewable Volume Obligations (RVO) requirements by the end of the year, forcing the ruling to be delayed until 2015.
Causing additional concern in the US biodiesel sector, the US Environmental Protection Agency (EPA) gave the green light for Argentina's biofuel makers to qualify for biofuel credits. The green light will make it easier for Argentina to sell its massive output into the US and the news could boost the Argentine biodiesel sector.
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.