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 Q3 2019
Supply increased in Q3 as producers in Malaysia and Indonesia ramped up production to meet local blending mandates but there was reduced export material available to the EU and China due to the mandate requirements. In Q3, biodiesel producers in Thailand also increased production but higher crude palm oil prices eventually led to higher production costs and higher export prices.
Demand in Q3 increased in domestic markets as governments in Indonesia, Malaysia and Thailand pushed for higher blending requirements to try and support CPO prices and reduce growing stockpiles. Demand from export markets was generally stable due to lower requirements and due to slightly favourable gasoil-palm oil spreads at times during the quarter when crude prices spiked.
Fatty acid methyl esters 0 (FAME 0) supply remained healthy throughout Q3, with ample imports seen in the first half of the quarter. Provisional anti-subsidy duties placed on palm methyl ester (PME) from Indonesia came into force in August, with imports falling significantly as a result. Rapeseed methy ester (RME) availability was abundant in Q3, with stock levels said to be full at the end of September because players stockpiled material for the peak winter demand period.
Demand for FAME 0 was strong during Q3 amid the peak summer driving season. Buying interest slipped at the end of the quarter given the approach of the winter season. RME demand typically falls during the summer, but remained strong due to a lot of interest for blending with PME. Buying interest saw less of a boost than expected at the end of the quarter because stocks in the region were full.
Biodiesel supply increased in the third quarter as producers increased production in order to meet the federal mandate for biodiesel production. US July biodiesel production was 159m gallons, 17m gallons higher than June 2019, according to the US Energy Information Administration (EIA). The EIA has not yet released August and September production figures. Production figures are likely higher for August, while September production may have slowed as producers closed in on reaching the federal mandate.
Third quarter biodiesel demand decreased, as many refiners and blenders were granted waivers exempting them from meeting the renewable volume obligations (RVOs) under the federally-mandated levels established by the Environmental Protection Agency (EPA). The EPA’s granting of dozens of small refinery hardship exemptions undercut prior-year volumes and slowed blending amid uncertainty regarding biofuels reform. Demand also slowed as biodiesel producers were closely approaching the federal mandate for biodiesel production.
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
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