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 2019
European rapeseed methyl ester (RME) availability started the first quarter at fairly healthy levels following logistical issues at the end of 2018 due to low water levels on the river Rhine. Tight supply of feedstock rapeseed oil limited RME production, though falling demand through the quarter helped balance out stocks. Fatty acid methyl ester 0 (FAME 0) availability was ample in the first quarter, with further imports arriving into the region from Argentina towards the end of the first quarter.
RME buying interest was high at the beginning of the quarter amid seasonally strong demand in winter. Towards the end of the quarter RME demand was starting to wane, with the switch to summer grade biodiesel taking place in mid-April. FAME 0 buying interest was limited at the beginning of the quarter but players had started turning their attention to the summer grade biofuel by March.
Supply across the US was stable during the quarter amid unchanged market dynamics and continued uncertainty regarding the federal tax credit. Producers were concerned after the US Environmental Protection Agency (EPA)’s discarding of a plan that would required refiners to blend more biofuels into their gasoline and diesel in 2019, to compensate for exempted volumes granted under the hardship waiver program. EPA’s granting of dozens of small refinery hardship exemptions undercut prior year volumes.
Demand of biodiesel across the US was stable during the quarter amid unchanged market dynamics. The industry is concerned after the EPA’s discarding of a plan that would have required refiners to blend more biofuels into their gasoline and diesel in 2019 to compensate for exempted volumes granted under the hardship waiver program.
Supply increased in Q1 as producers in Malaysia and Indonesia continued to export material to the EU and China. Biodiesel shipments are expected to continue until Q2 after deals done in late-2018/early-2019. In Q1 2019, biodiesel producers in Thailand and Malaysian also increased production to meet higher domestic blending mandate requirements.
Demand in Q1 increased in domestic markets as governments in Indonesia, Malaysia and Thailand pushed for higher blending requirements to try to support CPO prices and reduce growing stockpiles. Demand from export markets was generally stable, due to lower requirements during winter seasons and a gap between gasoil and palm oil prices.
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).