ICIS' Global Biodiesel price report contains news and analysis of market movements around the world. Our price assessments focus on European spot, South America, North America domestic and Asia spot.
The commentary highlights the influencing factors driving prices, and includes feedstock prices and graphs to reflect changing prices in this weekly report. Whether you are directly buying or selling on the biodiesel or related markets, this informative report will help you to make confident business decisions.
How we can help
Biodiesel news and market information products from ICIS
We offer the following regional Biodiesel analysis and news coverage to keep you informed of factors and developments affecting prices in the Biodiesel marketplace.
Price Reporting – More information about the price reports we publish on Biodiesel
Independent price assessments and market coverage by region
Price History – More information about the historical price data we publish on Biodiesel
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.
Biodiesel: Market overview
Updated to Q4 2017
PME biodiesel supply is expected to remain constant due to domestic blending mandate requirements in Indonesia and Malaysia. Limited capacity expansions are expected while the market would largely be dependent on fluctuations in prices of feedstock palm oil in the final quarter of the year.
Demand for PME biodiesel is typically slower at year-end as PME usage declines in the main export market, the EU, during the winter months. Recent firmness in palm oil prices could also hold back any plans to increase domestic blending mandate requirements in Malaysia and Indonesia. Some relief could appear should there be an uptick in SE Asian demand for PME.
The prolonged tightness that has been noted in the rapeseed methyl ester (RME) market over previous quarters is expected to continue throughout the fourth quarter, with market players anticipating the limited availability will continue into 2018. The shortage has been attributed by sources to a lower than expected upstream rapeseed crop in 2017, as well as delays in receiving the crop.
The demand outlook for European biodiesel in Q4 is currently cloudy, due to a recent decision by the European Commission to significantly lower anti-dumping duties on Argentine and Indonesian biodiesel. As a result, European players expect demand for traditionally more expensive rapeseed methyl ester (RME) to slip. However RME buying interest generally increases in the winter months when diesel blenders switch to winter grade biodiesel, meaning the outlook is as of yet unknown for the fourth quarter.
In the fourth quarter, the biodiesel industry will continue to face unprecedented uncertainty.
The US Renewable Fuel Standard (RFS) biofuel volume mandate for 2017 took effect at the end of the first quarter, after a regulatory freeze introduced by the Trump administration expired.
There is concern over the point of obligation for blending and most market players do not want to see any change in 2017. The US National Biodiesel Board (NBB) filed an antidumping and countervailing duty petition with the US government to investigate imports from Argentina and Indonesia, saying they have violated trade laws by flooding the US market with dumped, subsidised biodiesel. The final decision for that trade fight should come in the fourth quarter.
News & analysis
Biodiesel news & analysis
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.
Biodiesel is a clean burning alternative fuel, produced from renewable resources. The most commonly used feedstocks are rapeseed, soy and palm oil. Corn and tallow are also used. Rapeseed methyl ester (RME) is mainly produced in Europe; soy methyl ester (SME) comes mainly from the Americas; and palm methyl ester (PME) from Asia, in particular Malaysia and Indonesia.
Biodiesel is made through a chemical process called transesterification to make the methyl ester with glycerine and is produced as a by-product.
Biodiesel can be used in compression-ignition (diesel) engines and most oil-fired boilers. It is suitable for most applications where regular diesel is currently used. It can also be used in most modern diesel engines without modification, including those in passenger cars, sport utility vehicles, light trucks, buses, ships, trains, off-road heavy equipment and mining equipment, as well as for home heating fuel, power generation and in two-stroke engines (as a mixing agent).