Asia
The prices of palm methyl ester (PME) in Asia increased to hit a high of $1,080/tonne FOB (free on board) southeast Asia in mid-September as discussions firmed in line with the gains seen in gasoline prices.
However, negotiations rapidly decreased to a low of around $870/tonne FOB southeast Asia by early November, as buying ideas softened in line with gasoil prices.
Despite sellers’ attempt to keep prices firm in response to rising palm oil prices, buyers eventually succeeded in bringing negotiation prices down on the back of weak demand.
The key European market was in a winter lull since PME is unsuitable for use in cold temperatures below 10°C.
Updated to mid-November 2012
Europe
The European biodiesel market continues to be hindered by legislative uncertainty, as participants are no closer to knowing which grades and feedstocks will count towards the European Renewable Energy Directive (RED) targets.
European rapeseed methyl ester (RME) production remains at lower levels than previous years. However, there is some optimism that local capacity will increase if the European Commission rules that biodiesel imports from Argentina and Indonesia were sold in the EU at below cost price.
Updated to mid-February 2013
US
The Argentine biodiesel market has been focused on Spain’s retaliation restricting the import of Argentine biodiesel into the country following the expropriation of YPF earlier this year and the antidumping complaint filed with the EU, which has halted imports into the region.
Biodiesel out of the port of Rosario in Argentina is largely muted following the trade restrictions to its largest buyer from mid-August into November. Sales have been subdued and prices have dropped to $1,125-1,150/tonne since mid-August.
US biodiesel values have remained on a downtrend since mid-August as production was cut back amid uncertainty in the sector because of the expired federal tax credit and continued concern over the Renewable Identification Numbers (RIN) fraud.
By mid-November, producers have reduced production amid the absence of the $1/gal federal biodiesel tax credit.
Updated to mid-November 2012