Sample: Global Biodiesel

Copyright 2014 Reed Business Information Limited. ICIS Pricing is a member of the Reed Elsevier plc group.
9th January 2014
Global Biodiesel
Editors Heng Hui hui.heng@icis.com, Sarah Trinder sarah.trinder@icis.com,

Leela Landress, Leela.Landress@icis.com
EUROPE (SPOT)
Click for Price History Price Range Four weeks ago EUR/MT
RME EN14214
FOB NWE USD/TONNE -47 1062-1077 -69 1151-1186 781.96-793.00
RME (RED)
FOB NWE USD/TONNE -52 1092-1107 -74 1176-1211 804.04-815.09
FAME 0 CFPP
FOB ROTTERDAM USD/TONNE -27 1037-1052 -54 1081-1106 763.56-774.60
le
FAME 0 CFPP (RED)
FAME -5 CFPP
FAME -10 CFPP
PME
CIF ARA T2 USD/TONNE -17 1007-1022 -44 1056-1081 741.47-752.51
PME (RED)
CIF ARA T2
mp
USD/TONNE -22 1037-1052 -49 1081-1106 763.56-774.60
SME
CIF ARA T2 USD/TONNE -27 1047-1062 -54 1076-1101 770.92-781.96
NOTE: for full details on the criteria ICIS pricing uses in making these price assessments visit www.icispricing.com and
click on methodology.
RME demand capped by high inventory
Seasonal rapeseed methyl ester (RME) demand is lower-than-expected due to a healthy customer inventory generated by pre-buying
in the fourth quarter of 2013.
Coupled with plenty of offers in the market, the lower demand has exerted downward pressure on RME premiums over ICE Gasoil
futures.
Sa
RME has an advantageous cold filter plugging point (cfpp) which ensures it is in high demand during winter, but this has not been the
case so far this year.
Overall, European biodiesel premiums are on the decline due to healthy supply and poor demand, and dropping feedstock prices.
It has been a slow start to the year, an industry source said. However, the number of biodiesel trades have increased from last week,
albeit by a small margin, after a number of participants returned from the winter holidays.
Market activity in the paper market accelerated over Tuesday and Wednesday, before falling back on Thursday.
The increased activity mid-week indicated buyers were emerging from the sidelines to get a feel for the market, an industry source
said. However, the majority of buyers are still likely to wait until they feel premiums have hit rock bottom before they close deals, it
added.
Meanwhile, supply is healthy because of good harvest in upstream virgin vegetable oils, a source said.
The market outlook remains unclear at present because of uncertainty regarding feedstock pricing and demand levels, but sources
expect a clearer picture to emerge in the coming weeks.
Copyright violation is a serious offence. Any distribution or forwarding of information which is not expressly permitted by your subscription
agreement is a copyright violation. ICIS pricing will be using software to monitor unauthorised electronic redistribution of reports.
Copyright 2014 Reed Business Information Limited. ICIS pricing is a member of the Reed Elsevier plc group.
Global Biodiesel
Page 2 of 5
le
Biodiesel premiums over ICE gasoil
The daily settlements of front-month ICE gasoil were in a range of $907.25-912.25/tonne this week. The above ranges are calculated
by adding biodiesel premiums to the gasoil range.
Biodiesel grade
Rapeseed methyl ester (RME)

mp Premium over ICE gasoil
$155-165/tonne FOB NWE

Last week's report
$185-190/tonne FOB NWE
RME RED $185-195/tonne FOB NWE $220-225/tonne FOB NWE
Fatty acid methyl ester (FAME) 0 $130-140/tonne FOB Rotterdam $140-150/tonne FOB Rotterdam
FAME 0 RED $160-170/tonne FOB Rotterdam $175-185/tonne FOB Rotterdam
FAME -5 $140-150/tonne FOB Rotterdam $150-160/tonne FOB Rotterdam
FAME -10 $145-155/tonne FOB Rotterdam $185-190/tonne FOB Rotterdam
Palm methyl ester (PME) $100-110/tonne CIF ARA $100-110/tonne CIF ARA
PME RED $130-140/tonne CIF ARA $135-145/tonne CIF ARA

Sa
Soybean methyl ester $140-150/tonne CIF ARA $150-160/tonne CIF ARA
Feedstock
Rapeseed oil
698/tonne FOB NWE February/April 2014 delivery
708/tonne FOB NWE May 2014/July 2014 delivery
698/tonne FOB NWE August 2014/October 2014 delivery
Source: Reuters, 9 January.

Covering Editor: Cuckoo James
SOUTH AMERICA
Click for Price History Price Range Four weeks ago
Global Biodiesel
Page 3 of 5
SME
FOB ROSARIO EXPORT USD/TONNE -10 840-855 -10 850.00-865.00
Argentina
The Argentine government officially approved on Thursday the increase in the biodiesel blend percentage with diesel fuel and for use in
power plants.
The new blend percentage is 9%, up from 8%. The blend percentage for power plants was increased to 10%.
The measure is expected to absorb about 450,000 tonnes/year of biodiesel and would mean savings of about $50m, as it will offset
expensive fuel imports, a large regional producer said in December.
According to resolution 1125/2013 the blend percentage with diesel will increase again in February to 10%.
le
The legislation will increase the utilisation of installed capacity countrywide from 21% to 33%, the resolution said.
Biodiesel prices were assessed lower this week, as crude soybean oil (SBO) prices have sagged in recent days.
NORTH AMERICA (DOMESTIC)

Click for Price History Price Range Four weeks ago USD/MT
SME
B100 FOB MIDWEST
mp
USD/GAL -0.75 3.14-3.24 -0.75 3.99-4.09 829.50-855.92
B100 FOB USG USD/GAL -0.77 3.27-3.37 -0.77 4.09-4.19 863.84-890.26
FAME 0 CFPP
FOB MIDWEST USD/GAL -0.75 3.09-3.19 -0.75 3.94-4.04 816.29-842.71
Biodiesel and Renewable Identification Numbers (RINs)
Regional biodiesel producers reported pricing that has plummeted as the expiration of the $1/gal federal tax credit went into effect on
31 December 2013.
Many players in the biodiesel sector do not expect the tax credit to be renewed.
However, a recent new report quoted Iowa Senator Chuck Grassley saying that he expects the $1/gal federal tax credit to be extended
for 2014.
Sa
Amid such uncertainty in the market, a producer said production rates and business volumes were down across the sector.
RINs were slightly lower as bids and offers for 2014 were at $0.31-0.33/RIN during the week, while 2015 RINs bids/offers were down at
$0.42-0.44/RIN.
BioHeat
Legislation that would require all heating oil sold in the state of New York to contain at least 2% biodiesel fuel by July 2015 has reached
the desk of the governor, Andrew Cuomo, who is expected to decide the fate of the legislation by the end of January.
The bill was approved by the New York State Assembly and House in June. 2013.
It would require that all heating oil all sold statewide would have to meet that standard by 2 July 2015.
As the largest municipal consumer of heating oil nationwide, New York City implemented a citywide 2% biodiesel requirement in
October 2012.
US 80% biodiesel crude glycerine (bio-crude)
US 80% crude glycerine (bio-crude) prices were assessed steady this week as published ranges were said to be representative of the
market for medium-sized buyers.
Large buyers, mostly in the animal feed sector are paying prices below the published range.
Feedstocks
Bleachable fancy tallow (BFT) in the Chicago cash markets was at 34 cents/lb on the 8 January close, steady from the previous week.
Global Biodiesel
Page 4 of 5
Crude SBO in the Chicago cash markets settled at 35.06. Last year SBO prices were much higher at 47.50 cents/lb.
ASIA (SPOT)
Click for Price History Price Range Four weeks ago USD/CBM
PME
FOB S.E.Asia USD/TONNE -20 880-930 -20 950-1015 774.40-818.40
PME prices weaker on lower gasoil prices
Prices of palm methyl ester (PME) in southeast Asia were assessed as weaker on the back of lower offers and buying ideas amid lower
gasoil prices. A major producer said it was targeting at $900/tonne FOB SE Asia, citing low demand.
Prices of both ICE gasoil, at $913.50/tonne, and palm oil dropped week on week.
Malaysias tax-free export status under the European Generalised Scheme of Preferences has ended on 31 December 2013. It now
le
carries a 6.5% import duty. The export tax to US remains at 4.6%.
Meanwhile, the January crude palm oil (CPO) price was at $767.40/tonne, which puts the price spread between gasoil and CPO at
$146.10/tonne. A premium of at least $130/tonne is required to break even, according to a producer.
By-product glycerine
Prices of drummed refined glycerine were last assessed as stable at $900-950/tonne FOB SE Asia for the week ended 8 January.
Feedstock
mp
Workable negotiation levels for co-feedstock methanol were heard at $570-590/tonne CFR SE Asia on 9 January.
The Bursa Malaysia's CPO contract price was at ringgit (M$) 2,517.00/tonne for January 2014.
Freight rates
From southeast Asia to Europe: $80-90/tonne, 5,000-6,000 tonnes

From southeast Asia to the US: around $100/tonne
($1 = M$3.28)
Pricing information from ICIS is also available via the Dashboard service.
The ICIS Dashboard is a platform that enables you to see pricing, news and analysis in a single
screen.
Visit http://www.icis.com/moreondashboard to find out more.
Sa
FEEDSTOCKS (SPOT)
Click for Price History Price Range
GAS OIL FOB BARGES ARA USD/TONNE -5.00 905.25-906.75 -5.00
Price history | Related reports | Full report list | Price Alert | Plant performance data
Currency conversion (real time) | Glossary | Methodology | Latest product news
Find a supplier
ICIS pricing accepts no liability for commercial decisions based on the content of this report.
For information about multiple Copyright violation is a serious offence. Customer Support Centre
subscriptions and licences to this Any distribution or forwarding of information +44 20 8652 3335 or toll free from
information product, or for permission to which is not expressly permitted by your US/Canada:+1 888 525 3255
photocopy or redistribute individual reports, subscription agreement is a copyright ICIS pricing:www.icispricing.com
please call the relevant office: violation. ICIS pricing will be using software ICIS News:www.icis.com/news
London:+44 20 8652 3335, to monitor unauthorised electronic ICIS website:www.icis.com
sales.uk@icis.com redistribution of reports. Copyright 2014
Houston:+1 713 525 2600, Reed Business Information Limited. ICIS
sales.us@icis.com pricing is a member of the Reed Elsevier
Singapore:+65 6789 8828, plc group.
Global Biodiesel
Page 5 of 5
sales.ap@icis.com
le
mp
Sa

Sample: Global Biodiesel

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Sample: Global Biodiesel

Uploaded by

Copyright:

Available Formats

Copyright 2014 Reed Business Information Limited. ICIS Pricing is a member of the Reed Elsevier plc group.

9th January 2014

Editors Heng Hui hui.heng@icis.com, Sarah Trinder sarah.trinder@icis.com,

RME demand capped by high inventory

Rapeseed methyl ester (RME)

$155-165/tonne FOB NWE

$185-190/tonne FOB NWE

RME RED $185-195/tonne FOB NWE $220-225/tonne FOB NWE

FAME 0 RED $160-170/tonne FOB Rotterdam $175-185/tonne FOB Rotterdam

FAME -5 $140-150/tonne FOB Rotterdam $150-160/tonne FOB Rotterdam

FAME -10 $145-155/tonne FOB Rotterdam $185-190/tonne FOB Rotterdam

PME RED $130-140/tonne CIF ARA $135-145/tonne CIF ARA

Soybean methyl ester $140-150/tonne CIF ARA $150-160/tonne CIF ARA

698/tonne FOB NWE February/April 2014 delivery

708/tonne FOB NWE May 2014/July 2014 delivery

698/tonne FOB NWE August 2014/October 2014 delivery

Source: Reuters, 9 January.

NORTH AMERICA (DOMESTIC)

Biodiesel and Renewable Identification Numbers (RINs)

PME prices weaker on lower gasoil prices

From southeast Asia to Europe: $80-90/tonne, 5,000-6,000 tonnes

You might also like