LONDON (ICIS)--Spot European biodiesel prices softened this week amid backwardated market conditions and quiet demand, sources said on Thursday.
Renewable energy directive (RED) certified rapeseed methyl ester (RME) prices were at $992-1,024/tonne FOB (free on board) NWE (northwest Europe), down by $8/tonne at the low end of the range from last week.
Fatty acid methyl ester (FAME) 0 RED prices were at $977-1,004/tonne FOB Rotterdam, down by $10-13/tonne from last week.
One source said that premiums had softened amid market backwardation, with discounted prices evident further along the pricing curve.
Another source said that premiums had softened because of a lack of buying interest as participants were absent from the market for summer holidays. However, the source added that there had been a marginal rebound in premiums on Thursday, with slightly higher levels of demand evident.