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.
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Updated to Q2 2016
In Q2 2016, Asia’s market for palm methyl ester (PME) remained largely domestic-centric, supported by mandatory usage of biofuel in several producing countries. In contrast, export PME trade was subdued. At current ICE gasoil values, end-users in countries where biofuel usage is not mandated continued to shy away from PME, which they said is no longer economically viable for gasoil blending purposes. PME offers had held firm during the quarter, on the back of strong upstream feedstock crude palm oil prices.
With PME at a hefty $200/tonne or higher spread over current ICE gasoil values, end-users in countries that do not enjoy government subsidies for biodiesel usage found this hard to stomach.
Updated to Q3 2016
Q3 European biodiesel demand was quiet, despite it usually being a time when higher demand for summer-grade biodiesel would be expected.
Most buying interest was in rapeseed methyl ester (RME) and fatty acid methyl ester (FAME) 0, which traded close to parity throughout Q3.
Towards the end of the quarter, there was a surge in demand for RME as players returned to the market following the summer holiday period and looked to cover their needs for the coming quarter.
Q4 tends to be the peak demand period for RME as it is suitable for use in colder temperatures.
As the end of the quarter approached, the EU General Court delivered a series of rulings to annul anti-dumping duties imposed on imports of biodiesel from Indonesia and Argentina.
Players in the market fully expect an appeal to be launched against such a move in the coming months, with the anti-dumping duties remaining in place for now.
Updated to Q3 2016
In the US, biodiesel production was steady and feedstock prices largely stable.
A tax package that included a two-year retroactive extension to the $1/gal biodiesel and renewable diesel blenders' tax credit that was passed at the end of 2015 – and set the stage for a profitable 2016 for biodiesel producers – will expire at the end of this year.
Three legislative bills are currently with the US House of Representatives and the US Senate, requesting an extension of the tax credit.
The National Biodiesel Board and biodiesel producers are hopeful the incentive will pass, albeit with a change to a producers’ credit rather than a blenders' credit. This would exclude any foreign producers from collecting the tax credit.
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.