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.
Price Reporting – More information about the price reports we publish on Biodiesel
Independent price assessments and market coverage
Price History – More information about the historical price data we publish on Gas
Track historical price data
News & analysis
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 biodiesel prices have fluctuated since the beginning of the quarter but have generally been on a downward trajectory, with vegetable oil and gasoil prices tending to be at lower levels while demand was quiet, and some sellers under pressure to shift volumes.
Renewable Energy Directive (RED)-certified rapeseed methyl ester (RME) and fatty acid methyl ester (FAME) 0 RED premiums over ICE gasoil were trading at a narrow price gap, if not close to parity, throughout the quarter.
Market participants said that this was because RME RED was the main ingredient for FAME 0 RED blends as a result of limited supply of cheaper blending components such as soybean methyl ester (SME) RED and palm methyl ester (PME) RED.
Towards the end of the quarter there was an atmosphere of uncertainty about market conditions going forward in light of changes to German biofuels legislation set to come into effect in 2015. There was also a lack of clarity over whether the European Commission would extend anti-dumping duties and countervailing duties on US exports of biodiesel to Europe.
Updated to Q3 2014
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 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 to maintain the biomass-based diesel standard for 2014 and 2015 at the 2013 level of 1.28bn gallons. The US EPA finalized its 2014 RVO rule for the renewable fuels standard (RFS) and submitted it to the Office of Management and Budget (OMB) for review on 22 August. The publication of the proposed rule, expected this fall has precipitated widespread concern in the industry.
Updated to Q3 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.