According to our latest Vesper Price Index for West-EU, Biodiesel RME UCOME FAME 0 prices are on the rise.
On February 13, 2024, RME prices went up by 4.7%, reaching $1161 per metric tonne (FOB ARA) from $1109 on February 6, 2024. In a similar trend, UCOME prices increased by 2.2% to $1269 per metric tonne from $1246 in the same period. Additionally, FAME 0 prices saw a rise of 3.6%, moving to $1087 per metric tonne from $1049, marking consistent growth across all categories.
Robust increases in LSGO and strengthening vegetable oil prices have bolstered the EU biodiesel market. Market reports this week indicate heightened demand for RME alongside advanced FAME and acid oils.
However, prices for UCO remained relatively stable, prompting speculation among traders given Europe’s perceived feedstock scarcity amidst the Red Sea crisis. Western EU biodiesel producers lament slim profit margins, leading to negotiations with UCO suppliers.
Additionally, industry chatter revolves around potential trade conflicts with China over biodiesel import levies.
LSGO (Mar 24) settlement price (ICE EU) increased to €813 | $875 / mt (2024-02-13) from €767 | $824 / mt on 2024-02-06 due to the geopolitics in the Middle East and Eastern Europe, increased drawings of US fuel stocks, and the anticipation is that FED will maintain elevated interest rates for an extended period.
Discussions among the U.S., Egypt, Israel, and Qatar regarding a ceasefire in Gaza concluded without progress amidst mounting appeals for Israel to refrain from launching an anticipated attack on the densely populated southern region of the enclave. Yemen’s Houthis have continued their assaults in the Red Sea, targeting ships with economic connections to the United States, Britain, and Israel.
According to reports, the US declined Russian President Vladimir Putin’s proposal for a ceasefire in Ukraine.
Additionally, Ukraine conducted drone strikes on two oil refineries in southern Russia. A recent U.S. government report revealed persistent high consumer inflation, prompting anticipation of a delay in interest rate cuts by Fed policymakers. This delay may hinder economic growth and oil demand.
Finally, the API data showed that the gasoline inventorie fell 7.23 million barrels, and distillate stocks fell by 4.02 million barrels.
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