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.
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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.
Updated to Q1 2018
Supply of rapeseed methyl ester (RME) is expected to be healthy in Q1 due to increased production during the winter period, when high demand is typically noted in the market. There are concerns that production will be reduced further in 2018 because of extra imports from Argentina, which follows a reduction in antidumping duties on product from the country entering Europe.
Strong demand for RME, the most common biodiesel in Europe, is expected in the first quarter. Winter is a strong period of buying interest for RME due to its lower freezing point. Further into the year, however, there are questions as to how much the recent reduction in antidumping duties on Argentinian soybean methyl ester (SME) entering the EU will affect demand for the typically more expensive RME.
The US biodiesel industry is heading into 2018 with more certainty than in previous years, following the finalisation of federally mandated blend volumes for 2018 and 2019. The US Environmental Protection Agency (EPA) will keep intact biodiesel blending mandates for the nation’s diesel supplies in 2018. The regulation, known as the Renewable Fuels Standard (RFS), will require fuel manufacturers to mix 2.1bn gal (7.9bn litres) of biodiesel into the diesel fuel pool.
The US Environmental Protection Agency (EPA) will keep intact biodiesel blending mandates for the nation’s diesel supplies in 2018, and the Renewable Fuels Standard (RFS), will require fuel manufacturers to mix 2.1bn gal (7.9bn litres) of biodiesel into the diesel fuel pool. Steady from last year.
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).