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 Q1 2021
Southeast Asian biodiesel demand and supply were closely linked, as the bulk of demand came from the respective domestic markets’ mandated blending programmes. In Indonesia, the revised export tariff scheme for crude palm oil provided clarity and assurance to the biodiesel industry, as it served as a concrete way for the Indonesian government to collect sufficient funding to subsidize the blending programme.
Overseas demand returned towards the end of the first quarter, as China and European countries switched their diesel blends from winter to summer specifications. However, such discussions were not viable for most of the quarter due to the wide palm oil-gasoil (POGO) spread. Spot discussions only emerged in March when the POGO spread narrowed after crude prices rebounded and palm oil prices corrected downwards.
Biodiesel production levels continued to run at reduced rates amid low demand, high vegetable oil prices, and overall feedstock shortages. High rapeseed prices and feedstock shortages squeezed production margins amid low lockdown-induced gasoil and biodiesel consumption, enticing producers to maintain low production levels through Q1. A lack of SME and PME imports continued to result in prolonged FAME 0 shortages.
Buying interest for the winter grades of RME and FAME-10 failed to gain momentum as extended lockdowns tarnished scopes of demand recovery. UCOME spot demand remained muted as lockdowns dampened buying sentiment in the open market. The summer grades of FAME 0 and UCOME started to garner spot buying interest in March, resulting in a revival of spot activities following vaccination rollouts across Europe.
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