Biodiesel Procurement Reports

For the First Quarter of 2022

Asia

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

Asia-Pacific

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.

North America

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.

Europe

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

Asia

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.

North America

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.

Europe

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.

Latin America

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

Asia

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.

North America

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.

Europe

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.

Latin America

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.

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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.

Chart Description:
 
Procurement Resource provides prices of Biodiesel for several regions around the globe, which are as follows:

  • North America
  • South America
  • Europe
  • Asia Pacific
  • Middle East
  • Africa

About Biodiesel:

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

Production Processes:

  • Biodiesel Production from Fat or Vegetable Oil via Transesterification

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.

Supplier Database:

  • Diester Industries
  • Neste Oil
  • ADM
  • Infinita Renovables
  • Biopetrol
  • Cargill
  • Ital Green Oil

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. 

Methodology:
 
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).

Procurement Resource also provides the detailed production cost analysis of Biodiesel See more

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