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.
Updated to Q2 2021
Southeast Asian biodiesel demand and supply were closely linked, as the bulk of demand comes from the respective domestic markets’ mandated blending programmes. The southeast Asian government continued to see falling pressure as the palm oil-gasoil (POGO) price spread continued to grow smaller in Q2. Many producers had sufficient volumes for export but negotiations were hampered by pricing or logistics.
Overseas demand for southeast Asian palm methyl ester (PME) for blending into fatty acid methyl ester-0 (FAME-0) grew during the summer season. Firming gasoil prices and higher alternative methyl ester prices helped to make PME attractive too. However, demand did not pick up as much as some players hoped, as overseas blenders were wary of the pandemic’s impact on driving and gasoline demand and chose to maintain lean inventories.
Record high vegetable oil prices forced producers to cut output to prevent negative margins. The affect of high vegetable prices combined with a firm upstream gasoil market, resulted in all-time record price hikes in Q2. A lack of SME, PME, and UCOME imports also contributed to the prolonged tightness. High shipping freight charges hindered imports from Asia significantly. Waste-based biodiesel grades such as UCOME were also impacted bythe prolonged closure of restaurants.
Demand for all grades of biodiesel remained subdued as Europe slowly emerged out of lockdowns in Q2. Buying interested slowly shifted from RME to the more summer specific grades of FAME 0 and UCOME by the end of the quarter. The EU biofuels mandates also accounted for a steady rise in demand for higher GHG-savings volumes of UCOME and HVO. Spot activity remained sporadic, with no clear trend evident in the biodiesel demand recovery phase.
We offer the following regional Biodiesel analysis and news coverage to keep you informed of factors and developments affecting prices in the Biodiesel marketplace.
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 the name of a clean burning alternative fuel, produced from renewable resources. The most commonly used feedstocks are rapeseed, soy and palm oil.
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).
Rapeseed oil, fats and grease, crude palm oil