Quarterly Update on Global Biodiesel Market
For the Quarter Ending March 2021
Asia
Demand for Biodiesel was very high in the APAC region during Q1 2021. Scarcity of Rapeseeds pushed up the prices of Biodiesel in the global market, especially in Indonesia where the prices rose due to high export demand from other Asian countries. China claimed high demand for Rapeseed and hence Europe-China trade was marked mountainous. Meanwhile in India, Aemetis has announced that its universal biofuels subsidiary/plant in Andhra Pradesh, will soon distribute Biodiesel to Indian public transport buses.
North America
USA experienced high demand for Biodiesel for blending in gasoline during Q1 2021. Meanwhile, the government of USA announced the price hike in RIN (Renewable Identification Number) credits which are given to those engaged in gasoline manufacturing with apt Biodiesel blending. Rest of the manufacturers who don’t blend Biodiesel in gasoline would have to buy these credits, and this will propel the demand for Biodiesel in the coming months. This announcement enhanced the market sentiments and key players anticipated to seek huge spike in demand for Biodiesel across the region, that will force small manufacturers to increase their production.
Europe
In Europe, Rapeseed prices in Germany surged as an effect of lower supply levels heard during January. The sales of Biodiesel remained low during January despite moderate product availability. Later in March, Biodiesel sales spiked up, but the inventories remained at low levels, which supported the price of feedstock vegetable oils and Rapeseeds. In addition, the European export demand for rapeseeds from several Asian countries was high that forced its prices to remain high.
For the Quarter Ending September 2020
Asia
The producers of Biodiesel in the southeast Asian countries were heard releasing sufficient volumes to cater to the increased overseas and domestic demand. The outbreak of Covid-19 impacted the supply of used cooking oil in China, which is the country’s main and primary biodiesel feedstock. As per our Q3 estimates, the regional demand stood low, but the production has increased on the back of robust demand from the European Union. With around 42 biodiesel plants projected to start operations by the end of 2020, the sentiments are turning bullish as the year-end approaches. In Indonesia, prevailing concerns due to government's inability to keep pace up with the biodiesel blending program, widened the price gap between gasoil and palm oil.
North America
Biodiesel producers in the US ramped up production rates seeing favorable gains during the peak demand season in summers. The third quarter reported marked increased in the production of Biodiesel in the US, as the demand was supported by a mandate on consumption and buoyant fuel demand for the conveyance of goods by the heavy vehicles. USDA data shows that US exported Biodiesel to seven countries with Canada as the top destination with volume reaching 56904 metric tons in September.
Europe
The supply of biodiesel started picking up in Europe starting July 2020, with a strong rise in the consumption patterns. Lack of imports from Asia and Argentina, led to shortage in supply of FAME (Fatty Acid Methyl Ester) in September 2020. At the end of Q3, the supply of rapeseed-based biodiesel remained enough. Due to its summer blend properties, the demand for FAME 0 remained robust across Europe. In addition, UCOME (Used Cooking Oil Methyl Ester) was experiencing better demand than other biodiesel grades after its demand faded by the end of Q3.
