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 2019
Rapeseed methyl ester (RME) availability was healthy throughout Q2 amid falling demand due to seasonality. Fatty acid methyl ester 0 (FAME 0) supply was fairly long at the beginning of the quarter, before tightening to a more balanced level amid a jump in buying interest in the approach to summer. RME is a winter grade biodiesel due to its low cold filter plugging point (CFPP). FAME 0 is a summer grade biodiesel because of its high CFPP.
RME demand decreased steadily throughout Q2, with buying interest limited for the winter grade biodiesel during the summer period. FAME 0 demand increased during Q2 in the approach to the peak summer driving season. However, the rise in buying interest was not as prominent as in previous years, with players stocking up in Q1 for use in Q2.
Supply of biodiesel across the US was stable during the quarter amid unchanged market dynamics and continued uncertainty regarding blending federally-mandated blending volumes. Producers are worried after the EPA’s discarding of a plan that would have forced refiners to blend more biofuels into their gasoline and diesel in 2019 to compensate for the exempted volumes granted under the hardship waiver programme. EPA’s granting of dozens of small refinery hardship exemptions undercut prior-year volumes.
Demand for biodiesel across the US was stable during the second quarter amid unchanged market dynamics and continued uncertainty regarding federally-mandated blending volumes. Blenders and refiners were slow to blend volume during the quarter as many refiners applied for blending waivers and the outcome of the applications remained undecided.
EPA’s granting of dozens of small refinery hardship exemptions undercut prior-year volumes and slowed blending amid uncertainty.
Biodiesel supply increased in Q2 as producers in Malaysia and Indonesia ramped up production to meet local blending mandates. However, there was reduced export material available to the EU and China due to the mandate requirements. In Q2, biodiesel producers in Thailand also increased production and managed to secure some export deals, but a rebound in crude palm oil prices eventually led to higher production costs and higher export prices.
Biodiesel demand in Q2 increased in domestic markets as the governments in Indonesia, Malaysia and Thailand pushed for higher blending requirements, supporting CPO prices and reducing growing stockpiles. Demand from export markets was generally stable due to lower requirements and favourable gasoil-palm oil spreads at times during the quarter when crude prices spiked.
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).