The Vesper West-EU Price Index reports notable decreases in biofuel prices as of April 9, 2024. RME prices dropped to €1165 ($1265) per metric ton (FOB ARA), down 9.1% from €1281 ($1375) on April 2. UCOME prices also declined, reaching €1267 ($1376) per metric ton from €1362 ($1462), a 7% reduction. FAME 0 experienced a 9.5% decrease, falling to €1127 ($1224) per metric ton from €1245 ($1336). Lastly, HVO (UCO) prices decreased by 4.7%, from €1699 ($1824) to €1620 ($1759) per metric ton. All prices are quoted Free On Board (FOB) at Amsterdam-Rotterdam-Antwerp (ARA).

For biodiesel, market activity has appeared sluggish for participants, with few deals being made. Market participants note that inquiries were received from Chinese hydrotreated vegetable oil (HVO) producers at $900 per metric ton cost and freight (CFR), which translates to approximately $830-840 per metric ton free on board (FOB) in Indonesia.

Despite receiving inquiries, no offers were made. This situation could be due to European biodiesel producers adjusting to current demand and a decrease in local trading activity in Indonesia, following the end of Ramadan and Eid-al-Fitr. Market players, however, are still feeling the impact of high freight prices for containers from Asia, which could potentially maintain total prices at strong levels.

The recent price hikes experienced in late March for feedstock seem to have settled at higher positions. Strong price increases marked the beginning of the new quarter last week, a trend further supported by high freight costs in the Southeast Asian (SEA) region. Consequently, FOB ARA prices for feedstock have decreased due to this market inactivity, prompting larger trading houses to take up long positions in anticipation of lower prices in the near future.

For more insights into the global biodiesel market, download our latest highlights.