Biodiesel and feedstock EU biodiesel prices have continued to strengthen, according to the latest report, see Figure 1.

Figure 1: Vesper Spot Outright Biodiesel Prices (USD/mt)

The Vesper West-EU Price Index for RME (2024-03-19) surged to €1125 | $1223 / mt (FOB ARA) from €1094 | $1196 / mt on 2024-03-12, representing a notable increase of 2.8%. Similarly, the Vesper West-EU Price Index for UCOME (2024-03-19) experienced a significant rise to €1200 | $1304 / mt (FOB ARA) from €1167 | $1277 / mt on 2024-03-12, indicating a robust increase of 2.8%. Additionally, the Vesper West-EU Price Index for FAME 0 (2024-03-19) climbed to €1069 | $1162 / mt (FOB ARA) from €1042 | $1139 / mt on 2024-03-12, reflecting a steady increase of 2.6%.

In Europe, market participants are increasingly seeking feedstock, leading to rising prices for POME, UCO, and Rapeseed Oil. With delays and increased costs in importing from Asia due to the Red Sea situation, preference is given to feedstock already in EU storages.

“Seems like demand is switching away from Asia into EU production, potentially ahead of import duties. Freight from Asia still prohibits much volume from coming our way,”, noted one industry insider.

Another concern was raised by a representative from a German crushing business “Biggest concerns are about the feedstock availability for summer and Q4 with HVO capacities entering the market”.

Outright prices for biodiesels have increased as well since the last report, even at a quicker pace than feedstocks which slightly widened the margins.

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