Chinese biodiesel exports hit record high in September

  • Market: Biofuels
  • 27/10/20

Chinese biodiesel exports hit an all-time high of 119,000t in September, narrowly beating the previous record of 113,000t set in April, according to Global Trade Tracker.

Sales slumped to 39,000t in June as Covid-19 caused European buyers to halt or delay purchases. But restrictions were gradually lifted over the summer and cargoes started flowing again though with the second wave biting down as winter approaches, exports could start tumbling once more.

Biodiesel shipments totalled just 61,000t in September 2019 and 82,000t in August this year.

Exports over the first three quarters of 2020 were 684,000t compared with 447,000t during the same period last year. The Netherlands took 70pc of that, Spain 21pc and Belgium 7pc.

Imports slumped to 19,000t in September from 163,000t a year earlier as cheap palm-based product from Indonesia and Malaysia was no longer available given high feedstock costs, low gasoil prices and increased domestic mandates in the producer countries. Just 69,000t was bought between January-September, down sharply from 781,000t a year earlier.

Used cooking oil exports were flat at 79,000t in September from 76,000t a year earlier, though this was down from 91,000t sold in August. Shipments for the first nine months of 2020 at 703,000t still exceeded year-earlier levels of 543,000t.

The Netherlands was again the biggest buyer taking 29pc of the total, followed by Spain with 23pc and Malaysia with 17pc, though most of this was bound to be re-exported to Europe.


Sharelinkedin-sharetwitter-sharefacebook-shareemail-share

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News
27/03/24

Brazil, France launch €1bn program to protect Amazon

Brazil, France launch €1bn program to protect Amazon

Sao Paulo, 27 March (Argus) — Brazil and France launched a four-year, €1bn ($1.1bn) investment program to protect the Amazon rainforest using private and public funds, the countries said on Tuesday as French president Emmanuel Macron is visiting the South American nation. "Gathered in Belem, in the heart of the Amazon, we, Brazil and France, Amazonian countries, have decided to join forces to promote an international roadmap for protection of tropical forests," the two countries said. Under the program, Brazil's public banks — such as the Bndes development bank — and the French development agency will form "technical and financial partnerships." The two countries also agreed to develop new research projects on sustainable sectors and create a research hub to share technologies to develop the bioeconomy. Macron and Brazilian president Luiz Inacio Lula da Silva visited Belem — near the mouth of the Amazon and the host city of Cop 30 — on 26 March. During the trip, indigenous leader and environmental campaigner Raoine Metuktire, of the Kayapo tribe, urged Lula to prevent construction of the 900km (559-mile) Ferrograo railroad , which could lower costs of transporting grains from Mato Grosso state, Brazil's largest agricultural producer. Macron will also visit Rio de Janeiro, Sao Paulo and capital Brasilia. This is his first trip to Brazil, as he had cut ties with the South American country during former president Jair Bolsonaro's administration. Bolsonaro put little focus on environmental protections during his term, policies that his successor has reversed. Brazil now aims to reach zero deforestation by 2030. It reduced deforestation in the Amazon by almost 50pc last year, according to government data. Deforestation in the region hit 196km² in January-February, a 63pc drop from the same period in 2023 and a six-year low, according to NGO Imazon, which focuses on research to promote climate justice in the Amazon. By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Read more
News

Ethanol constraints minor on Baltimore closure: Update


27/03/24
News
27/03/24

Ethanol constraints minor on Baltimore closure: Update

Houston, 27 March (Argus) — Ethanol flows in the US northeast may only see minor near term constraints following the closure of the Port of Baltimore due to the collapse of a bridge at the mouth of the waterway. Producers and other market participants expect longer local transit times for trucks carrying hazardous materials — including ethanol — to retail stations because of the collapse of the Francis Scott Key Bridge, which carried nearly 12.4mn cars and trucks in 2023, according to Maryland state data. This will lead to higher associated costs, but market sources say the region's supply chain flexibility, rail access and available stocks should mitigate near-term ethanol supply interruptions. Ethanol rail deliveries into the Baltimore market are expected to increase, offsetting the loss of barge supply for the duration of the port's closure. Railroads Norfolk Southern and CSX have rail access at the Port of Baltimore, while Kinder Morgan operates the primary transload terminal. US east coast ethanol stocks in March are at their highest monthly average since April 2020 at 8.76mn bl, according to the Energy Information Administration. By Payne Williams Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Ethanol constraints minor from Baltimore port closure


27/03/24
News
27/03/24

Ethanol constraints minor from Baltimore port closure

Houston, 27 March (Argus) — Ethanol flows in the US northeast may only see minor near term constraints following the closure of the Port of Baltimore due to the collapse of a bridge at the mouth of the waterway. Producers and other market participants expect longer local transit times for trucks carrying hazardous materials — including ethanol — because of the collapse of the Francis Scott Key Bridge, which carried nearly 12.4mn cars and trucks in 2023, according to Maryland state data. This will lead to higher associated costs, but market sources say the region's supply chain flexibility, rail access and available stocks should mitigate near-term ethanol supply interruptions. Ethanol rail deliveries into the Baltimore market are expected to increase, offsetting the loss of barge supply for the duration of the port's closure. Railroads Norfolk Southern and CSX have rail access at the Port of Baltimore. US east coast ethanol stocks in March are at their highest monthly average since April 2020 at 8.76mn bl, according to the Energy Information Administration. By Payne Williams Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

European bio-bunker March prices firm on uncertainty


27/03/24
News
27/03/24

European bio-bunker March prices firm on uncertainty

London, 27 March (Argus) — Marine biodiesel prices firmed in the second half of March across Europe as higher levels in underlying markets combined with supply uncertainty to lend support to blend prices, despite limited demand. Very-low sulphur fuel oil (VLSFO) firmed by $16/t to $585.58/t on a dob Amsterdam-Rotterdam-Antwerp (ARA) basis and $17.47/t to $628.17/t on a dob Gibraltar-Algeciras-Ceuta (GAC) basis during 14-26 March compared with the two weeks prior. Gains in the fossil market were mainly attributed to an increase in European refinery turnarounds as well as stronger crude values. The front-month Ice Brent crude futures 16:30 GMT marker averaged $86.07/bl on 14-16 March, an increase of $2.92/bl from 1-13 March. Rising fossil levels were accompanied by increases in the biodiesel spot barge market. Prices for advanced fatty acid methyl ester (Fame) 0°C cold-filter plugging point (CFPP) on a fob ARA barge basis averaged $1,407.15/t during the last two weeks of March, a $53.58/t rise from 1-13 March. Used cooking oil methyl ester (Ucome) barges firmed by $47.47/t to $1,316/t during the same timeframe. Biodiesel prices have firmed from long-term lows on the back of a reduction in European production and limited demand. Higher prices in underlying markets were accompanied by an emerging theme of biofuel supply uncertainty. Participants reported that European suppliers may look to steer away from Chinese-origin biodiesel as the EU's anti-dumping investigation continues, with a conclusion by early 2025 at the latest. This was compounded by chronic disruption in the Red Sea, historically the most utilised route on the east-west voyage, leading to traffic redirecting via the Cape of Good Hope and a subsequent increase in freight costs. The potential shift in supply routes can be supported by changes in product flows. Some 19,000t of Fame has been exported from China with a marked destination in Europe in March so far, an 80pc drop from February's 106,000t — according to Kpler data. This month's exports are just 10pc of the 184,000t exported from China to Europe in March last year, according to Kpler. Declining volumes from China were accompanied by an increase in Fame volumes exported from northwest Europe intra-continental to 409,000t in March from 364,000t a month prior. GTT data pointed to a 47pc decline in Chinese biodiesel exports in January-February, coinciding with an increase in Chinese exports of used cooking oil (UCO) with northwest Europe the main destination. Uncertainty in the supply import pool coincided with raised concerns around the presence of "unestablished" biodiesel feedstocks in bunker fuels. A report from Lloyd's Register fuel oil bunkering analysis and advisory service (FOBAS) highlighted a correlation between engine fuel pump and injector related damage in vessels and the presence of cashew nut shell liquid (CNSL) in marine fuels utilised by the vessels. CNSL is one of the cheaper advanced feedstocks and can be eligible for Dutch renewable tickets (HBE-G) — which can help make marine biodiesel blends more appealing and price competitive to buyers, as well as reduce production costs. But participants noted that during tests conducted by shipowners to assess the compatibility of CNSL with marine engines, technical and specification limitations emerged because of potentially high acidity and metal contents. This prompted shipowners and bunker suppliers to avoid fuels that contain CNSL, which may further constrict the pool of biodiesel supply that can be integrated into the maritime sector. Argus assessed the price of B30 Ucome dob ARA, a blend comprising 30pc Ucome and 70pc VLSFO, at $839.17/t during 14-26 March — an increase of just under $22/t from the 1-13 March average. B30 Advanced Fame 0°C CFPP dob ARA range averaged just over $785/t during 14-26 March, higher by $16.19/t from the two weeks prior. B100 Advanced Fame 0 levels rose by $16.62/t to $1,159.79/t in the second half of March. B24 dob Algeciras-Gibraltar firmed to $812.61/t in 14-26 March, an increase of $19.50/t from prices on 1-13 March. By Hussein Al-Khalisy Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Argentina biofuel companies push for deep changes


27/03/24
News
27/03/24

Argentina biofuel companies push for deep changes

Buenos Aires, 27 March (Argus) — Argentinian biodiesel companies are urging the government to speed up regulatory changes so they can ramp up production and exports. The association of oilseed producers (Ciara) is not only in favor of President Javier Milei's sweeping omnibus reform package , but is lobbying for deeper changes to increase the blending mandate, ramp up production and move to second-generation biodiesel production. The omnibus bill would change more than 100 articles in the energy sector, including the law that regulates biofuels. The bill was presented in December, but has stalled in congress since February. "Approval of the omnibus law is essential, because the current biofuels law is bad for the industry and bad for the consumer," Ciara's president Gustavo Idigoras told Argus . The changes proposed by the Milei administration would, among other things, eliminate price controls, open the door to investment in new technologies and oil-seed crops, such as camelina and carinata, increase exports, and let all companies in the biodiesel sector supply the domestic market. Under current rules, only small firms can supply the domestic market, while large industrial firms export biodiesel. The legislation also increases the blending mandate for biofuels to 7.5pc from 5pc. Ciara wants the mandate increased to 15pc, which would bring Argentina in line with what is planned for Brazil, where blending is at 14pc and should increase to 15pc under legislation recently approved by the Brazilian congress . The goal in five years should be for a harmonized Argentina-Brazil biodiesel market, Idigoras said. He also said the changes would have an immediate impact, because Argentina has installed capacity to produce 4mn metric tonnes (t)/yr of biodiesel, but is only producing 1.5mn t/yr because of restrictions in the domestic market and exports. Ciara forecasts exports to increase to at least 2.5mn t/yr if the regulatory changes are approved. Argentina exported approximately 280,000t in 2023, a historic low, because of drought. It exported 1.4mn t in 2022. Argentina has the right conditions for hydrotreated vegetable oil (HVO) plants and to produce sustainable aviation fuel and biofuel for the maritime industry, Idigoras said, adding that there is a window of at least 10 years where biofuels will play a key role in the energy transition. Green hydrogen will eventually be a competitor, but it will take time for it to scale up production to meet demand, he said. The industry could enact sector-specific modifications if the omnibus bill was not approved, but that would not be ideal, Idigoras said. Lawyers working on energy projects agree, saying investors would be less committed if changes were made through executive orders instead of laws. An executive order would have less weight because it depends on the administration in power, while the omnibus is a law approved by congress, according to Ignacio Criado, an attorney at the Tanoira Cassagne law firm. "The energy sector needs investment and the omnibus bill is a shortcut," he said. "It simplifies regulations and provides transparency." By Lucien Chauvin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more