As per the data, in Germany, Biodiesel prices have fallen by almost 1.3% in March 2023. Contrary to the expected improvement in Biodiesel prices in March, the market has shown a bearish trend throughout the month. Throughout the Quarter 1 of 2023, demand for Biodiesel remained weak, and Biodiesel prices fell due to a drop in queries from the downstream consumers amid ample material availability owing to steady domestic production.
In Europe, the Biodiesel prices decreased by the regional suppliers amid sufficient availability of product supplies due to depressed demand and weak buying activities in the domestic market amid reduced consumption rates from the end user power and logistics sector.
The production costs have declined due to weak prices of Rapeseed Oil due to an increase in stocks and Used Cooking Oil Methyl Ester (UCOME) amid an increase in UCOME and other feedstock imports from Asian exporters. Furthermore, European Rapeseed Oils fell below Asian Palm Oil in the generation due to the availability of surplus supplies, as per the market sources.
At the end of the month, price movement was the same, and prices decreased amid declining demand for Diesel from the power sector amid the temperature rise. The market also remained sluggish due to the weak Diesel market as its prices fell amid increased imports from Russia despite tightened sanctions on Russian products by European Union.
As per the estimation, “The Biodiesel price trend may remain weak in the first half of April 2023, and prices will rebound during the other half. The demand for Biodiesel will likely remain weak from the downstream power sector and for heating purposes under the influence of warming weather and an increase in temperature. Furthermore, feedstock Rapeseed Oil and used cooking oil prices will improve with depletion in supplies as farmers are holding back Rapeseed crops.”
