SAN ANTONIO (ICIS)--The US glycerine market is closely watching Indonesian biodiesel production given that a potential ramp up of production rates in that country could push more glycerine volume to US markets, a distributor said on Sunday.
The source was speaking on the sidelines of the International Petrochemical Conference (IPC).
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.
Trade discussions in Asia show contrasting opinions regarding a possible biodiesel ramp up.
On the one hand, buyers in southeast Asia expect greater glycerine supply as biodiesel production increases, but many suppliers do not foresee any significant increase in glycerine output, at least not in the near term.