European Biodiesel Prices Rebounded in Early October 2022
- 13-Oct-2022 6:10 PM
- Journalist: Yage Kwon
Germany-Biodiesel prices in the European market strengthened this week as the demand for feedstock and biofuel is rising. Palm oil and soybean oil are the significant resources required for Biodiesel production in the regional market. Global palm oil purchases are increasing this quarter as buyers take advantage of the tropical palm oil's growing price reduction to competitor soy oil, which persuaded price-sensitive consumers to buy more feedstock and boost Biodiesel usage. In the second week of October, the price of Biodiesel was assessed at USD 2660 per MT, FD Hamburg, in the German market.
Indonesia and Malaysia are the major exporters of palm oil in the international market. According to the Malaysian Palm Oil Board (MPOB), palm oil export has increased by approximately 5%. The critical factor behind this increment is the continuous drop in palm oil prices and the abundant availability of palm fruit with suppliers. However, soybean and sunflower oil also witnessed a rise in demand, acting as a competitor in the edible oil world. The most significant discount in palm oil in a decade would shift demand away from soy and sunflower oil and help Indonesia and Malaysia producers to reduce stockpiles weighing on benchmark futures. These fluctuations in the feedstock (palm oil) prices made the Biodiesel production process a lot easier in the regional market as the demand for the same is rising parallelly.
The buoyancy in global energy prices, which accelerated after major oil producers agreed to cut output, has increased palm oil consumption for Biodiesel. The European buyers are making palm oil purchases for November and December shipments because blending palm oil has become profitable due to the rise in energy prices. The burning natural gas prices in the European region are creating pressure on the government to promote the production of Biodiesel.
As per ChemAnalyst, the increase in the prices of Biodiesel is likely to persist in the European market as the shortage of edible oil and energy fuel will remain constant.