Get the latest insights on price movement and trend analysis of Biodiesel in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).
Biodiesel Price Trend for the H1 of 2023
Biodiesel prices fluctuated in the Asian region in the first half of 2023. Prices had a slow start in January but rose in the middle of the first quarter. The biggest palm oil exporting country, Indonesia, banned palm oil exports to ensure domestic oil security, pushing up the Biodiesel prices for some time. But soon enough, the Biodiesel prices started plunging as the crude oil prices started normalizing. Biodiesel prices continued this downward wavering journey for the rest of the second quarter.
The European biodiesel market observed oscillating trends throughout the first half of 2023. The market had a stable start at the beginning of Q1, with stable supply-demand dynamics. However, in the middle of Q1, prices rose a little as inventories started declining. Q2 mostly witnessed plunging price patterns because of the falling prices of feedstock coconut and palm oil. Further, the crude oil prices began normalizing, so the blending demands decreased. Overall, price trends for Biodiesel witnessed muted sentiments in Q2 of 2023.
The biodiesel industry in the North American region mostly wavered on the lower side during the said period. The biggest reason for these low swinging patterns was declined feedstock costs. Lowered prices of palm oil, soybean oil, and coconut oil reduced the upstream costs for biodiesel production. Further, the elevated inventory levels also supported the fluctuating patterns.
According to the Procurement resource, biodiesel prices are expected to fluctuate as the inventories are high; hence, the prices will show moderate shifts. The imports from Indonesia and Malaysia will likely affect the global biodiesel market.
Biodiesel Price Trend for the H2 of 2022
The price trends for biodiesel exhibited mixed patterns in the said period. As the prices of feedstock palm, coconut, and soybean oil relaxed owing to the upliftment of temporary trade restrictions and the opening up of ports, the prices of biodiesel relaxed. The lower trend continued till August due to market dullness amid fears of recession. However, the market’s demand revived towards the end of the third quarter as the world shifted its attention to green alternative fuels. This incline in the prices was rather short-lived as soon the market became sluggish. The demand fell owing to reduced market enquiries and limited transport ability.
Initially, the market demand for biodiesel was dull in the European region due to the availability of cheap feedstock from exporting nations like Malaysia and Indonesia. However, the rising energy prices and intense struggle of the manufacturers to cushion their profit without passing the raised prices to the consumers caused the market to explore greener and most importantly readily available options.
The prices of biodiesel fell throughout the US domestic market as the price of feedstock fluctuated frequently throughout the said period. The sufficient availability of stock in the domestic market along with supply disruptions and limited transportation activity kept the prices in check.
According to Procurement Resource, biodiesel prices are likely to remain volatile as the prices of feedstock palm oil and soybean oil are still reeling under pressure. However, the demand is expected to stabilize thereby aiding the price increase.
For the Second Quarter of 2022
The price of biodiesel increased during the second quarter of 2022 in the Asia-Pacific region. The largest producers of feed palm oil are Indonesia and Malaysia. These nations forbade the export of feed palm oil, which led to a lack of feed and increased production costs in the regional market for biodiesel producers. Moreover, the regional market's demand for biodiesel increased, sharply driving up the price of the fuel. In Q2 of 2022, biodiesel prices were higher than in Q1 of the said year. In April, the price quotations ranged from 1782 USD/MT Ex-Tanjung Priok to 1917 USD/MT in June 2022.
Due to elevated feed and edible oil prices, market sentiments regarding biodiesel in Europe were positive during the second quarter of 2022. As the quarter came to a close in Q2, the prices were seen at 2487 USD/MT FOB Rotterdam, Netherlands.
The trend developed as feedstock market prices fell; palm oil displayed bearish behaviour the entire quarter. The high production costs of biodiesel were caused by a frenzied feed supply and rising gas prices, which in turn raised the quoted pricing in the local market. In addition, the government's desire to reduce reliance on gasoline derived from petroleum increased the demand for biodiesel manufacturing. These factors each played a part in pushing up the cost of biodiesel in the European market.
During the second quarter of 2022, biodiesel prices decreased in the North American market. Towards the conclusion of the quarter, the biggest producers of biodiesel quoted prices of 2085 USD/MT FAME Ex-Missouri and 2375 USD/MT SME Ex-Missouri. As commodities rose in price, there was a food crisis on the market.
Biodiesel production was temporarily halted to combat the food shortage, which lowered the price. The price of edible oils, such as palm and sunflower oil, rose correspondingly, which affected the price trends of biodiesel in the North American market. Moreover, as oil prices dropped, end consumers' desire for and usage of biodiesel also decreased.
For the First Quarter of 2022
In the Indian retail market, biodiesel prices are benchmarked with the prices of diesel. In March 2022, the biodiesel prices were at 86 INR/L. Indonesia and Malaysia continued with their biodiesel blending program with palm oil to cut down diesel imports as a step towards greener energy. In 2022, soybean oil, an important raw material for biodiesel production will witness a rise in prices by 4% to almost 1425 USD/MT.
For the Fourth Quarter of 2021
The Asia-Pacific region saw a strong biodiesel market in Q4 of 2021. In Southeast Asia, a greener economy was being supported by investors, and production levels went up, and the market witnessed unanticipated growth. In China, biodiesel prices in Q4 were 1540 USD/MT.
On the other hand, in India, the high demand for the fuel motivated black-market channels for even degraded quality biodiesel. The producers increased their production of the fule to meet the upsurge in domestic demand. The government slashed taxes in the region by a certain margin in the second half of the quarter. By December, biodiesel prices in India were 1268 USD/MT.
In North America, market sentiments were mixed in Q4 of 2021. There was a rise in the price trend of the fuel during the first half of the quarter, which was later subdued in the second half. Blending rates were eased by the US EPA when they witnessed strong resistance from the market because of poor demand due to the pandemic, which kept fluctuating. Consequently, economic relief was provided to biodiesel producers by the USDA to restore the markets for renewable fuels. By the end of the quarter in 2021, biodiesel prices in Missouri were settled at 2188 USD/MT.
The European market witnessed an upward trend in the biodiesel market during Q4 of 2021, the reason for which can be attributed to the aggravated supply shortages in the light of the energy crisis. Feedstock availability was limited due to run rate restrictions and increased production costs, which led suppliers to raise their prices for the domestic markets. A rebound in crude oil prices, however, supported a high PMI index in the region. As the omicron variant of COVID spread across various countries, the demand outlook also kept fluctuating, to the point where the supply of the fuel was not able to keep up with the demand. As a result, by the end of the fourth quarter of 2021, biodiesel prices in Europe surpassed 2000 USD/MT.
For First, Second and Third Quarters of 2021
In the APAC region, the demand remained mostly high in Q1 of 2021. A rapeseed supply shortage also contributed to high biodiesel prices, particularly in Indonesia, where producers were struggling to meet the overseas export demand from other Asian countries. In Indonesia, biodiesel price was 950 USD/MT, while in China, it was 1090 USD/MT in Q1.
In India, a new biodiesel plant was announced by Aemetis in the state of Andhra Pradesh, which aimed to meet the local demand for public transportation. The price in the region was 1100 USD/MT in Q1. In Asia, palm oil prices soared, which in turn affected biodiesel prices in the region, which witnessed a considerable rise.
The demand remained low in India as the second wave of the pandemic spread. By the end of Q2, biodiesel prices soared to a high of 900 USD/MT due to international pressure in the overall APAC region. The Asian markets reported an upward trajectory for its prices in Q3 of 2021. The prices did not falter in the quarter due to the unstable supply of the crucial raw materials in the region.
Domestic biodiesel prices soared in India, which propelled the country's biodiesel demand. The price increased from 859 USD/MT to 935 USD/MT in Q3 of 2021, owing to the improving conditions for rising biodiesel demand. The raw material feedstock prices also increased, which in turn affected the fuel’s prices.
In America, the demand for blending gasoline was high in Q1 of 2021. The US government raised the price of renewable identification number (RIN) credits, which involved the manufacturers of gasoline to blend biodiesel. Gasoline manufacturers who did not blend biodiesel into gasoline were therefore charged with the credits, which in turn led to its high demand for in the region.
This high demand motivated even small manufacturers to increase their production levels. The price was 790 USD/MT in Q1 in the US. The limited supply of the fuel led to an increase in prices in America in the second quarter of 2021, as the market witnessed rising demand by the end of April.
The soaring prices for palm oil and rapeseed also impacted the biodiesel prices to a great extent, which were later subdued as the quarter end approached and the stocks increased and cheaper feed materials were imported. Biodiesel prices declined considerably and settled at 1290 USD/MT in the second quarter in the United States. North American markets witnessed a significant price rise in the third quarter of 2021.
Freight cost of the raw materials imported from Asia increased, which thereby resulted in a sharp rise in the prices in the region. Palm oil and rapeseed prices also increased due to their shortages, which also contributed to the price in the quarter. The demand for the fuel was mostly stable and prices were at 1390 USD/MT in Q3 in the US.
In Germany, the price of rapeseed increased due to the limited supply in Europe. The biodiesel demand was, however, low in the meantime, even though the supply was moderate. In the latter half of Q1, sales increased, but by then the supply levels were famished. In Germany, the price was 1248 USD/MT in Q1, which was owing to the diminishing supply of vegetable oil and rapeseed in the region due to fewer exports from Asia.
Even though demand was low in Europe in the second quarter, the prices still remained significantly high due to the limited supply of palm oil and rapeseed. As most economies were still recovering from the aftermath of the pandemic, demand for the fuel plummeted during the second quarter of 2021 in Europe, which also affected the prices of downstream products of biodiesel. In Germany, the price was 1475 USD/MT in Q2.
The market in Europe witnessed an upward pricing trend in Q3 of 2021, the reasons for which could be attributed to the global supply shortage of palm oil and rapeseed. The prices of palm oil and rapeseed spiked, which also increased the prices of their downstream products, such as biodiesel. The European demand for Asian exports also impacted the prices effectively, as production levels remained stagnant in the quarter. In Germany, the price was as high as 1595 USD/MT in Q3 of 2021.
In the beginning of 2021, biodiesel prices dropped to 842 USD/MT as demand reduced. However, the prices soon began to gain pace as the year progressed. In Q2 of 2021, the price was 896 USD/MT and in Q3, the price was 1053 USD/MT.
For the Year 2020
Biodiesel producers in Asia were reported to have increased their production and supply to keep up with the rising demand in domestic and international markets. The COVID-19 pandemic impacted China’s primary biodiesel feedstock, i.e., the supply of cooking oil. The regional demand remained low, but overseas demand had increased from countries in the European Union.
Production therefore increased in the region. The average price in China for the year 2020 was around 1060 USD/MT. In India, the average price was 950 USD/MT. Due to the Indonesian government's failed biodiesel blending program, prices in Indonesia were around 750 USD/MT.
The demand peaked in the US as summer approached, which motivated producers to ramp up the production levels in the region. This increased production was owing to the high demand for biodiesel as a fuel for the transportation of heavy-duty vehicles. The US reported an average price of 762 USD/MT in 2020, as export demand increased in neighbouring countries such as Canada.
The supply in Europe started to increase along with the consumption levels. Failure of imports from Asia and Argentina due to the pandemic restrictions led to a supply shortage of fatty acid methyl ester (FAME), a grade of biodiesel, in the region.
However, yet another grade of biodiesel, i.e., used cooking oil methyl ester (UCOME), witnessed high demand, which led to a rise in its price by the last quarter of 2020. In Germany, the average price in 2020 was 982 USD/MT, with the highest being in quarter 4 at about 1052 USD/MT.
In Brazil, biodiesel prices in the first quarter of 2020 were close to 573 USD/MT and dropped further to 516 USD/MT in the second quarter. However, by the third quarter, as the lockdowns were lifted and transportation resumed after the pandemic, the price soared at 959.99 USD per tonne and 1056 USD/MT in the 3rd and 4th quarters of 2020 respectively.
Procurement Resource provides latest prices of Biodiesel. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.
Biodiesel is a sustainable, biodegradable fuel that can be produced domestically using vegetable oils, animal fats, or recycled restaurant grease. In its pure, unbleached form, it is frequently referred to as B100 or plain biodiesel. Biodiesel, like petroleum diesel, is used to power compression-ignition engines.
|Industrial Uses||Transportation, Energy Generation, Heating, Lubrication|
|Supplier Database||Diester Industries, Neste Oil, ADM, Infinita Renovables, Biopetrol, Cargill, Ital Green Oil|
|Region/Countries Covered||Asia Pacific: China, India, Indonesia, Pakistan, Bangladesh, Japan, Philippines, Vietnam, Iran, Thailand, South Korea, Iraq, Saudi Arabia, Malaysia, Nepal, Taiwan, Sri Lanka, UAE, Israel, Hongkong, Singapore, Oman, Kuwait, Qatar, Australia, and New Zealand
Europe: Germany, France, United Kingdom, Italy, Spain, Russia, Turkey, Netherlands, Poland, Sweden, Belgium, Austria, Ireland Switzerland, Norway, Denmark, Romania, Finland, Czech Republic, Portugal and Greece
North America: United States and Canada
Latin America: Brazil, Mexico, Argentina, Columbia, Chile, Ecuador, and Peru
Africa: South Africa, Nigeria, Egypt, Algeria, Morocco
|Currency||US$ (Data can also be provided in local currency)|
|Supplier Database Availability||Yes|
|Customization Scope||The report can be customized as per the requirements of the customer|
|Post-Sale Analyst Support||360-degree analyst support after report delivery|
Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.
Transesterification is a chemical process that converts triglycerides (fats) found in oils (Feedstocks) into useable biodiesel. Biodiesel produced through the transesterification process has a substantially lower viscosity than petroleum diesel, making it suitable for use in diesel engines.
The displayed pricing data is derived through weighted average purchase price, including contract and spot transactions at the specified locations unless otherwise stated. The information provided comes from the compilation and processing of commercial data officially reported for each nation (i.e. government agencies, external trade bodies, and industry publications).
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