Biodiesel and Hydrotreated Vegetable Oil (HVO) prices have declined compared to the previous report, influenced by increasing supply from Asia.
Key price movements
- UCOME fell by $12/mt to $1,408/mt
- FAME0 dropped by $19/mt to $1,174/mt
- FAME-10 remained stable at $1,220/mt
Market Trends
Market participants are closely monitoring the impact of HVO and Sustainable Aviation Fuel (SAF) shipments from Asia, which are exerting downward pressure on prices. This influx is counteracting the anticipated rise in demand during Q1, which was expected due to adjustments in biofuel blending policies.
Feedstock market insights
Despite falling biodiesel prices, feedstock values remain strong:
- Used Cooking Oil (UCO) DDP West EU: EUR 1,250/mt
- UCO FOB China: $1,000–1,025/mt
- Palm Oil Mill Effluent (POME) FOB Indonesia: Increased to $1,020/mt from $1,010/mt
China’s competitive edge
Chinese exporters continue to benefit from robust domestic and international demand, coupled with constrained supply, providing them a competitive advantage in the global market.
Indonesia’s biofuel policy developments
The Indonesian government has addressed speculation regarding B40 delays, confirming that full implementation is expected by March 2025. Additionally, plans to introduce a B50 blend (50% palm oil in biodiesel) by 2026 have been announced. The government is also exploring the feasibility of a 3% palm oil blend in jet fuel by next year.
Looking ahead
With Asian supply growth weighing on prices and policy shifts shaping demand, the biodiesel market remains dynamic. Stakeholders should stay informed as the global energy transition and regulatory landscape continue to evolve.
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