Spain's strategic reserve Cores reported falling biodiesel demand again in June, although diesel consumption was flat on the year.
Cores said demand for biodiesel and hydrotreated vegetable oil (HVO) was 100,000t in June, down from 105,000t in May and lower by 15pc year on year. This is significantly lower than 145,000t in May 2019, in advance of the Covid-19 pandemic.
These figures do not track the reserve's reported data for June diesel consumption, which at 1.96mn t were close to level with the same month in 2021.
Cores says biodiesel and HVO demand was 630,000t in the first half of the year, compared with 695,000t in January-June 2021.
For the first time in four months Cores did not revise its 2021 data, leaving demand at 1.42mn t for a physical blend rate of 6.7pc. This would leave around 940,000t from double-counted biodiesel and HVO — made from feedstock such as used cooking oil (UCO) and animal fats (tallow) — plus tickets.
Storage firms and biodiesel producers said this month that trade remains brisk in Spain. The country acts as a hub for imports from outside the EU, and domestic production appears good. Some producers mentioned weak margins, which come about in part as companies vie for UCO and tallow supplies because the use of palm oil falls under a 3.1pc cap.
