Markets are experiencing significant volatility as President Trump’s recent trade policy shifts create uncertainty across the biodiesel sector. After an initial decline following widespread tariff implementations, prices are now showing signs of recovery following the administration’s announcement of a 90-day pause on additional tariffs for most countries.
The pause maintains the baseline 10% tariff for most nations while significantly escalating tensions with China, where tariffs will jump to an unprecedented 125%. Beijing has swiftly responded with an 84% reciprocal tariff on U.S. goods, effective April 10.
Industry analysts are closely monitoring U.S.-China negotiations, with particular concern for used cooking oil (UCO) trading. Sources at Vesper report that some U.S. importers have already canceled contracts for Chinese UCO imports amid the growing uncertainty.
Key market indicators from the weekly report:
- Brent Crude Oil increased to $65.48/barrel from $62.82/barrel
- CBOT soy oil rose to $1,018/mt from $991/mt
- UCOME prices fell to $1,394/mt (-9.3% week-over-week)
- RME dropped to $1,236/mt (-7% week-over-week)
- FAME 0 declined to $1,221/mt (-6.7% week-over-week)
The biodiesel market continues to watch ongoing talks between the U.S. and EU, particularly regarding EU biodiesel exports to the U.S., which previously reached up to 1 million metric tons annually.
For complete market analysis, detailed price trends, and expert insights on the biodiesel and renewable fuels sector, read the full Vesper Week 15 report here: https://app.vespertool.com/market-analysis/1850