Category

Countries

Stability Prevails in Biodiesel Prices Amid Lower Demands and EU-China Tensions
Stability Prevails in Biodiesel Prices Amid Lower Demands and EU-China Tensions

Stability Prevails in Biodiesel Prices Amid Lower Demands and EU-China Tensions

  • 29-Jan-2024 2:19 PM
  • Journalist: Patrick Knight

The price of the Biodiesel in the European market has marked stable trend from past 2 weeks as of 4th week of January. This stability in the declining trend in the Biodiesel price is witnessed due to the lower demands perceived from the downstream market in effect with the destocking of the inventories from the supplier’s end. The investigation of the European Union on the Biodiesel imported from the Chinese market has played an important role in influencing the price in these respective sessions.

In the fourth week of January, Biodiesel prices in the Netherlands reached 1180 USD/MT FOB-Rotterdam, despite a noticeable uptick in Rapeseed Oil prices. Facing challenges from substantial imports from China, the European Biodiesel Board (EBB) has entered a critical phase in its strategic response. Notably, the EBB has successfully identified and curtailed fraudulent practices, including suspected re-exporting of Indonesian Biodiesel via the Port of Hainan in China. Building on these achievements, the EBB has redirected its efforts toward investigating the dumping of Chinese Biodiesel. Additionally, Greenergy has announced the completion of expansion projects at plants in the UK and Amsterdam, upgrading pre-treatment processes to accommodate a broader range of waste oils for the production of lower carbon Biodiesel. The expansion, particularly a 25% increase in production capability at the Amsterdam plant, positions Greenergy as a key player in meeting the rising demand for waste-based biofuels in Europe. The stability observed in the declining price trend was attributed to moderate to weaker downstream market demand, concurrent with ongoing destocking efforts. Suppliers are exercising caution, awaiting price stabilization in the upcoming weeks before considering new inventory accumulation.

In the U.S. market, Pacific Biodiesel Technologies, LLC, has extended its operations to Kaua?i, following a multi-year agreement inked last year with the U.S. Army Corps of Engineers. This agreement aims to showcase a renewable biofuel produced in Hawai?i using various locally grown oilseed cover crops. The primary feedstock, Sunflower Oil, has experienced a significant upswing in the last two sessions, impacting the price of Biodiesel in the corresponding market.

According to ChemAnalyst's projections, the price of Biodiesel is expected to follow a bearish trend in the upcoming sessions. This forecast is grounded in the ongoing destocking of inventories observed from the suppliers, indicating a sustained lack of confidence among fresh bidders for inventory accumulation. The continuous destocking is a clear signal of hesitancy in engaging new inventory acquisitions. The ongoing investigation between China and the European Union is anticipated to have a significant impact in restricting the excessive import of Biodiesel, aligning with the current destocking trend in inventories.

Related News

Phillips 66 Commences Commercial Activities at Rodeo Biorefinery
  • 03-Apr-2024 11:05 AM
  • Journalist: Timothy Greene
Biodiesel Implementation Earns Praise from Illinois Soybean Association
  • 02-Apr-2024 7:13 PM
  • Journalist: Peter Schmidt
Repsol Secures Acquisition of 40% Stake in Bunge's Spanish Biodiesel Assets
  • 27-Mar-2024 11:29 AM
  • Journalist: Jai Sen
Argent Announces End of Biodiesel Production at Scottish Facility
  • 27-Mar-2024 10:26 AM
  • Journalist: Patricia Jose Perez