The European Biodiesel Market Stands Still at the End of November 2022
- 05-Dec-2022 12:30 PM
- Journalist: Timothy Greene
Germany- The price of Biodiesel in Germany followed a stagnant trend till the last week of November 2022 because of continuous demand for the product from the downstream sector. The European market relies on North America and Asian countries such as Indonesia and Malaysia for feedstock supply and products. Feedstock palm oil required for Biodiesel production witnessed a continuous drop in prices in the domestic market due to sufficient stockpiles with manufacturers to fulfill the demand. Towards the end of November, the prices of Biodiesel ranged between USD 2590 to 2750 per MT in Germany.
Furthermore, operators of European Biodiesel plants that currently use Russian energy resources may be pushed to find other suppliers, significantly squeezing the supply of non-Russian pellets. This situation occurred as the European nations tightened sanctions against Moscow in response to its actions in Ukraine. Biodiesel is another alternative for energy production and to decline the product's dependency on petroleum-based products. Other than palm oil, European countries use rapeseed oil for Biodiesel production. The demand-supply chain of the feedstock and the end product remained smooth as the German rapeseed oil exports declined 22% despite rising domestic biofuels industry demand. Rapeseed cultivation in Germany and Europe is becoming more significant as a source of raw materials to produce Biodiesel or Hydrogenated Vegetable Oil (HVO) in Germany and other European countries.
The market participants anticipate that Biodiesel derived from palm oil may no longer be required to produce. European nations rely on the US market for Biodiesel and its derivatives imports. The country has witnessed an energy shortage, proportionally raising the demand in the US market. As a result, the export of the product to the European market slowed. According to ChemAnalyst, Biodiesel prices may continue to follow the relaxed pace in the domestic market, accompanied by continuous demand and sufficient feedstock availability with end-use manufacturing units.