Based on recent price changes, outright biodiesel prices have seen a significant drop throughout the past week, following the trend of the week before.
According to the Vesper West-EU Price Index, the price for RME (2024-04-16) decreased to €1143 | $1213 /mt (FOB ARA) from €1165 | $1265 /mt on 2024-04-09. This marks a significant decrease of 9.1% WoW. Similarly, the price for UCOME has shown a decline, showing €1242 | $1318 /mt (FOB ARA) (2024-04-16) from €1267 | $1376 /mt on 2024-04-09 which is a decrease of 2%. In addition, FAME 0 fell to €1137 | $1207 /mt (FOB ARA) (2024-04-16) from €1127 | $1224 /mt on 2024-04-09, signifying a percentage decrease of 1%.
In contrast, the Vesper West-EU Price Index for HVO (UCO) (2024-04-16) increased to €1693 | $1796 /mt (FOB ARA) from €1620 | $1759 /mt on 2024-04-09, with a percentage change of 4%.
Traders have reported to Vesper that the market weakness is due to reports of a high supply of gasoil, which has, in return, weakened its prices, and thus demand for biodiesel.
In addition, expected SME exports from Argentina have exerted downward pressure on biodiesel prices. Price changes for biodiesel most notably can be seen in the FAME 0 and RME spread (see Figure 1), where the prices are only set apart by $6, indicating high competition.
Figure 1: Price spread between Fame 0 and RME for West-EU (FOB, ARA) in USD/mt
Finally, feedstock for biodiesel has experienced a price decline in the past week, especially for vegoils, as Brazilian soy ending stocks for 2023 were re-estimated at 5.9 million tons, 1.2 million higher than the previous prediction.
Overall, the biodiesel market seems quiet, with price changes at a maximum of 9% and not many trades reported.
