HOUSTON (ICIS)--The US glycerine market is closely watching global biodiesel production as trade fights and blending mandates globally are changing rapidly heading into this year’s International Petrochemical Conference (IPC).
The US market is closely watching a possible biodiesel ramp up in Indonesia, Argentina and possibly Malaysia.
Asian palm oil-producing countries have been accelerating efforts for an increase in their biodiesel blending rates as prices of crude palm oil (CPO) remain soft.
Since 2016, Indonesia has increased its biodiesel mandates from five per cent biodiesel (B5) to B7 and in September 2018 up to B20. It now aims to raise that to B25 or even jump straight to B30 this year.
Malaysia moved from B5 to B7 but has struggled to increase the blend ratio to B10. It delayed the move multiple times before finally rolling it out fully on 1 February 2019.
Looking to the Americas, Argentina’s biodiesel production is expected to increase in the coming months as the European Commission announced that Argentine biodiesel producers will be allowed to export to the EU.
In the US, there has been discussion that the US Department of Commerce is looking into possibly changing its tariff decision regarding Argentine biodiesel imports.
Argentine biodiesel and crude glycerine production was sharply affected when the US imposed tariffs on Argentine biodiesel in November 2017. Tarriffs on Argentinean biodiesel were set at over 72% by the US Department of Commerce in November 2017.
On 13 November 2018, the US Federal Register announced an initiation of changed circumstances reviews of the antidumping and countervailing duty orders for Argentine biodiesel imports into the US.
“In its request for initiation, the Government of Argentina explains that there are changed circumstances sufficient to warrant reconsideration of the antidumping and countervailing duty orders final determinations,” the filing said.
There does not seem to be any further announcement regarding the Argentine imports and the trade fight continues.
Some of the US glycerine producers include,Vantage, ADM, LDC and TRT.
The graph shows spot pricing for refined glycerine in the US Midwest .
Focus article by Leela Landress Perez