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
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Updated to Q1 2016
Asia’s market for palm methyl ester (PME) was largely stable in the first quarter of 2016, supported mainly by usage in southeast Asian countries where biofuel usage is mandatory. Indonesia introduced B20 in January 2016, requiring a 20% biodiesel blend in gasoline. PME producers in Malaysia and Indonesia were focused on supplying domestic markets, where demand is firm and prices supported by attractive government subsidies.
Spot trade in other parts of Asia, however, was quiet as producers and potential end-users were widely different in their respective valuations of PME. Buoyed by firm upstream crude palm oil prices, PME producers kept offers for export cargoes well above $600/tonne FOB (free on board) southeast Asia, nearly $100/tonne higher than buyers’ expectations. At current lacklustre ICE gasoil levels, potential PME buyers in regional countries where biofuel usage is not mandated do not find it economically viable to buy biodiesel for blending purposes.
Updated to Q1 2016
Operating rates in the European biodiesel market remain at low levels amid low demand and poor margins. Producers are said to be producing on a hand-to-mouth basis, monitoring buying interest and feedstock prices closely.
Although crude oil prices have been firmer towards the end of the first quarter, biodiesel remains comparatively more expensive, diminishing any discretional blending demand and ensuring illiquid spot market conditions.
Those with mandates to fill are delaying purchases and are expected to return to the market once the switch to summer specification has occurred. This is because summer biodiesel grades such as palm methyl ester (PME) and fatty acid methyl ester (FAME) 0 are comparatively cheaper than rapeseed methyl ester (RME), which is typically more suitable for use during winter.
Prices have fluctuated throughout the quarter, with volatile ICE gasoil prices, vegetable oil values and quiet demand pulling numbers in different directions.
Updated to Q4 2015
The US Environmental Protection Agency (EPA) released its final rule for renewable volume obligations (RVO) under the renewable fuel standard (RFS) on 30 November. The figures for biomass-based diesel were higher than the proposal released in May. The agency issued its biomass-based diesel RVO for years 2014-2017, while RVOs for all other categories – renewable fuel, advanced biofuels and cellulosic biofuels – were issued for 2014-2016. The final RVOs for biomass-based diesel are 1.63bn gallons for 2014, 1.73bn gallons for 2015, 1.9bn gallons for 2016, and 2bn gallons for 2017. Now, the fate of the $1/gal tax credit is the main focuses for players in the US market.
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.