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 Q4 2020
As biodiesel demand only came from domestic blending programmes, southeast Asian producers did not increase their production beyond what was needed for domestic consumption, while export demand remained limited in the winter season. In Indonesia, the government announced a revised export tariff scheme for crude palm oil in December 2020, which could provide more funds to subsidise the blending mandate.
No changes were seen in blending mandates. Export demand was limited as the overseas markets were using winter blends, which did not allow large amounts of PME to be blended. The palm oil-gasoil price spread remained wide in the quarter, largely due to CPO prices trending upwards throughout the quarter. Gasoil prices saw some recovery, but remained below levels seen prior to the crude oil price crash in early 2020.
Biodiesel production levels continued to be reduced because of existing inventories and lacklustre demand. The market pooled its rapeseed resources to focus on FAME 10 and RME production in anticipation of winter demand at the start of Q4 – a prospect which never materialised due to the resurgence of the coronavirus. A lack of SME and PME resulted in shortages of FAME 0. High vegetable oil prices also pushed producers to minimise output to protect production margins.
The targeted boost in consumption of FAME 10 and RME grades brought on by the French tax rebate legislation was ultimately thwarted by gasoil demand destruction caused by the second wave of the coronavirus. By the end of Q4 there was improved buying interest for UCOME compared with other biodiesel grades. A combination of the holiday season and movement restrictions imposed to curb the spread of the coronavirus crimped spot activity by year end.
Updated to Q3 2020
Production increased as producers ramped up during the summer high season. Production is typically strongest during the North American summer. Production also increased following lower-than-usual production in Q2 stemming from the onset of the coronavirus. Biodiesel production has not fallen as much as production for other fuels this year, supported by the federal mandate on consumption and sustained demand for diesel fuels for trucking during the pandemic.
Demand increased in Q3 amid increased diesel consumption during the summer higher season. Demand increased to meet the federal mandate on biodiesel consumption. Demand also increased following weaker fuels demand in Q2 because of the onset of the coronavirus pandemic. Demand also increased as movement restrictions related to the pandemic were lifted. Sustained diesel demand for trucking during the pandemic also supported consumption.
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