The ICIS global biodiesel report gives you the complete view of the global biodiesel market and ability to track the market movements, regardless of whether you are located in Asia, Europe or the Americas.
The comprehensive report enables you to quickly assess the markets and gain deeper insight on the ever-changing biodiesel markets.
Global biodiesel prices are also available via FTP.
Updated to Q3 2018
Availability of rapeseed methyl ester (RME) was slightly tight in the third quarter, on the back of production cuts in the second quarter coupled with expectations for a low upstream rapeseed crop this year. Fatty acid methyl ester 0 (FAME 0) supply was ample throughout the third quarter, bolstered by imports of soybean methyl ester (SME) from Argentina, as well as imports of palm methyl ester (PME) from Indonesia, following the removal of antidumping duties on material from both countries.
RME buying interest was limited in the third quarter with the summer being a particularly low demand period for the biodiesel grade. There was a lift to demand in August with a large amount of PME being blended into FAME 0. In order to meet requirements for FAME 0, PME must be blended with RME. FAME 0 demand hit its peak in the third quarter, with the grade being a summer blend due to its higher cold filter plugging point (CFPP).
Supply of biodiesel across the US was stable during the third 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 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 third quarter amid unchanged market dynamics and continued uncertainty regarding blending federally-mandated blending volumes. The industry is 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 exempted volumes granted under the hardship waiver program. EPA’s granting of dozens of small refinery hardship exemptions undercut prior year volumes.
Updated to Q2 2018
Supply increased in the second quarter as Indonesian producers won a victory in the EU courts that required the EU to drop ADDs on Indonesian biodiesel imports. Thailand and Malaysian producers increased production as the gap between gasoil prices and biodiesel prices narrowed sharply. Higher prices of gasoil opened up arbitrage opportunities for biodiesel buyers in Asia, especially for discretionary blending in India and China. Market sources said significant volumes of biodiesel were transacted for Indonesian biodiesel to be shipped to China over the next few months.
Demand early in the second quarter was stable but increased late in the quarter as gasoil prices increased along with crude oil, making it more economical to buy biodiesel. Demand improved, especially from China and India because of the higher relative prices of regular gasoil and crude. There was also demand from India and some Thai producers secured orders from such buyers.
Rapeseed methyl ester (RME) production In Europe dropped significantly in the second quarter of 2018, due to increased imports from Argentina and Indonesia, following the scrapping of antidumping duties on the countries. Supply was tight for the beginning of the quarter, though production was not affected as much as anticipated later in the quarter, with more RME available than was contracted for. As a result, the RME entered the spot market, bringing the market to a more balanced level.
Demand for RME fell in the second quarter, with the summer typically a period of low buying interest for the winter-grade biodiesel. This was further impacted by the increased imports entering the region from Argentina and Indonesia, with traditionally cheaper imports pushing RME out of competition. Demand picked up slightly towards the end of the second quarter, amid increased levels of palm methyl ester (PME) entering Europe from Indonesia. RME can be blended with PME to produce fatty acid methyl ester (FAME) blends.
Amid continued political uncertainty in the US domestic market, biodiesel supply was mostly constant over the second quarter. The dispute between biofuels interests and United States refiners continued with no resolution reached; this had producers running production to fulfill prompt spot sales as forward purchasing was not prevalent amid uncertainty. Some producers slowed or halted production in April in line with previously planned maintenance, came back up online in May and to some degree in June.
As the US federally regulated blend requirements remained uncertain in the second quarter, buyers halted forward purchasing and only bought product for blending on a hand-to-mouth basis for the quarter. The ongoing controversy regarding the small refiner waivers was a constant topic of discussion during the quarter, as the high amount of volumes waived could force producers to slow production and buyers to withdraw from the market as blend volumes were reached.
Biodiesel trade wars were ongoing during the second quarter as a multi-tiered trade fight continues to rage for the Argentine biodiesel sector. In April, the US International Trade Commission (ITC) released a final ruling determining that the US biodiesel industry had been damaged by unfairly dumped biodiesel imports from Indonesia and Argentina. The 4-0 vote was the final step before antidumping orders could be imposed by the US on the two exporting countries.
Raging biodiesel trade wars pushed import demand down. The European Commission announced in May that any imports of biodiesel from Argentina would be registered from 24 May for the next nine months. This was in order to retroactively impose tariffs on those imports if the current anti-subsidy case finds biodiesel from the country is being subsidised. In February, the US Department of Commerce confirmed its preliminary finding that Argentina engaged in dumping of biodiesel and imposed dumping duties.
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.
The ICIS global biodiesel report offers weekly spot prices and market developments on all mainstream grades of biodiesel in Asia, Europe, US and Argentina, all in one publication.
The report includes price quotes for rapeseed methyl ester (RME), soy methyl ester (SME), fatty acid methyl ester (FAME) and palm methyl ester (PME).
The spot price assessments are based on FOB (free on board) NWE (northwest Europe), FOB Rotterdam, CIF (cost, insurance & freight) ARA (Amsterdam-Rotterdam-Antwerp), T2, FOB Rosario, FOB Midwest, FD (free delivered) Midwest, FOB USG (US Gulf) and FOB SE Asia (southeast Asia).
In addition, it provides key transaction summaries and production news, including plant operating rates, new plant capacities, start-ups, scheduled and unplanned shutdowns.
Contract prices of feedstocks such as vegetable oil, ICE gasoil and crude glycerine are also included for reference.
All the price assessments are generated based on information collected from producers, distributors, traders and end-users, among other sources, collected by locally based editors throughout the week.
ICIS collects pricing data on a wide range of chemical, energy and fertilizer products, including Biodiesel. Our extensive experience in price reporting means we can offer you access to historical data dating back more than 20 years for certain commodities.
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