Malaysia to roll out 20pc biofuels mandate in 2022

: Agriculture, Biofuels
22/01/05

Malaysia will increase its on-road biodiesel blending mandate to 20pc (B20) in Sabah and peninsular Malaysia by the end of this year, delegates were told today at the annual Malaysian Palm Oil Council industry seminar.

Kuala Lumpur has already pushed back a nationwide rollout several times because of funding pressure from the Covid-19 pandemic and possibly as record-high crude palm oil (CPO) feedstock prices inflated the cost of subsidising the programme.

Bursa Malaysia-listed CPO futures dropped off towards the end of 2021 after the active third-month contract reached an all-time high of 5,081 ringgit/t ($1,210/t) on 20 October. But supply concerns among buyers following recent flooding across peninsular Malaysia drove an increase back over the 5,000 ringgit/t threshold by today's Singapore close.

The government is now working to upgrade infrastructure at 30-35 fuel depots before the B20 mandate can be launched, which will cost around 50mn ringgit in total.

Biodiesel blending for industrial applications remains at 7pc, with no date set yet for increasing the mandate to B10.

Malaysia has around 2mn-2.5mn t/yr of biodiesel capacity, with a full B20 mandate expected to consume roughly 1.1mn t/yr, leaving plenty of excess volumes for export. Malaysian palm methyl ester biodiesel exports dropped to 306,910t in 2021, the lowest volume in at least four years, according to cargo surveyor AmSpec.

By Lauren Moffitt

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25/07/12

Trump threatens Mexico, EU with 30pc tariffs

Washington, 12 July (Argus) — President Donald Trump on Saturday said the US will impose 30pc tariffs on goods imported from Mexico and the EU beginning on 1 August. In a move that could significantly disrupt crude, refined product and other commodity flows, Trump made public on his social media platform letters sent to Mexican president Claudia Sheinbaum and European Commission president Ursula von der Leyen on Friday threatening the new tariffs. Trump also vowed to raise the tariffs even higher if Mexico or the EU were to retaliate with their own measures. The threats follow similar letters sent to leaders of other countries this past week, including a 35pc tariff on Canadian imports , likewise starting on 1 August, and a 50pc tariff on Brazilian imports . In his letter to Sheinbaum, Trump repeated previous justifications for higher tariffs by pointing to "Mexico's failure to stop the Cartels" smuggling fentanyl into the US. "Mexico has been helping me secure the border, BUT, what Mexico has done is not enough," Trump wrote. "If for any reason you decide to raise your Tariffs, then whatever the number you choose to raise them by, will be added onto the 30pc that we charge," Trump wrote to Sheinbaum. His letter to von der Leyen included similar language. Trump's previous executive orders regarding tariffs on Mexico and Canada carved out exemptions for goods compliant with the US-Mexico-Canada free trade agreement. A White House official on Friday, following Trump's 10 July Canadian tariff announcement, said the exemption will remain in place, with a caveat that Trump has yet to determine the final form of application. Regarding the EU, Trump argued the 30pc figure "is far less than what is needed to eliminate the Trade Deficit disparity we have with the EU". Mexico's ministries of the economy, foreign affairs, finance, security and energy said in a statement Saturday that they met with their US counterparts on Friday to begin negotiations to head off the new tariffs before 1 August. "We stated at the meeting that [the new tariff plan] was unfair treatment and that we disagreed." After receipt of the new tariff letter, von der Leyen said Trump's tariffs "would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic". The US has clinched only one limited trade deal, which keeps in place a 10pc tariff on US imports from the UK while granting a lower-tariff import quota for UK-made cars. Trump has announced a deal with Vietnam, setting tariffs at 20pc. By David Ivanovich Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

USDA boosts soy view on biofuel policy changes

25/07/11

USDA boosts soy view on biofuel policy changes

St Louis, 11 July (Argus) — The US Department of Agriculture (USDA) today raised its projected US soybean crush for the 2025-26 marketing year following recent policy changes that are expected to increase domestic soybean oil demand for biofuel production. US soybean crush is expected to rise to a record 69.1mn metric tonnes (t) in the 2025-26 marketing year, the USDA said Friday in its monthly World Agricultural Supply and Demand Estimates (Wasde) report, up by 1.36mn t from the June report. The latest forecast marks a 5pc increase from volume projected for the 2024-25 marketing year. The higher outlook for soybean crush was driven by a substantial increase in anticipated soybean oil use for biofuel production, which the USDA places at 7.03mn t for the marketing year ahead, up by 27pc from the volume expected for the current marketing year. The increased biofuel use outlook follows US policy changes that significantly strengthen support for biofuels made from domestically produced feedstocks through changes to the 45Z biofuels tax credit and Renewable Identification Number credits generated through the Renewable Fuel Standard. The US is also proposing to require record biofuel blending into the US fuel supply over the next two years, including unexpectedly strong quotas for biomass-based diesel. With the increase in soybean crush, USDA expects domestic soybean oil production will rise to a record 13.6mn t in 2025-26, up by 4.1pc from the current marketing year. Additionally, the USDA revised higher its expectation for soybean oil imports in 2025-26 to 200,000t, up by 13pc from the current marketing year. Following an elevated export rate over the first half of the current marketing year, US soybean oil exports are projected to collapse in 2025-26, down by 73pc from the current marketing year to 318,000t. The reduction in exports, in combination with increased supply, is projected to exceed the gains in biofuel demand, increasing stocks to 758,000t by the end of the 2025-26 marketing year, up by 15pc from the inventory level projected for the end of 2024-25. Soybean meal supplies swell The jump in soybean oil demand is as also expected to result in a record level of US soybean meal production in 2025-26, up 4.5pc from 2024-25 to 54.3mn t, according to USDA. Both domestic use and exports of soybean meal are projected higher for the next marketing year following the increased supply outlook. US soybean meal exports are projected to reach 17mn t, up 7.5pc from 2024-25, while US soybean meal domestic use is projected to rise by 2.8pc to 37.9mn t. Soybean mean stocks are projected to increase as well, reaching 431,000t by the end of 2025-26, up 5.6pc from the level projected for the end of the 2024-25 marketing year. By Ryan Koory July 2025 USDA projections 2025-26 Chg from Jun 2024-25 Chg from Prior MY U.S. soybean oil supply and use ( mn t ) Supply -Beginning stocks 0.66 - 0.70 - -Production 13.59 0.27 13.06 - --Extraction ratio (pc) 19.67 0.00 19.83 - -Imports 0.20 0.07 0.18 -0.05 Total supply 14.46 0.34 13.95 -0.05 Use -Domestic disappearance 13.38 0.73 12.11 -0.14 --Biofuel 7.03 0.73 5.56 -0.39 --Food, feed and other Industrial 6.35 - 6.55 0.25 -Exports 0.32 -0.45 1.18 0.09 Total use 13.70 0.27 13.29 -0.05 -Ending stocks 0.76 0.06 0.66 - -Stocks-to-use (pc) 5.53 0.36 4.95 0.02 U.S. soybean meal supply and use ( mn t ) Supply -Beginning stocks 0.41 - 0.41 - -Production 54.30 1.04 51.98 - --Extraction ratio (pc) 78.54 -0.04 78.92 - -Imports 0.59 - 0.66 0.09 Total supply 55.29 1.04 53.05 0.09 Use -Domestic disappearance 37.90 0.41 36.85 0.09 -Exports 16.96 0.64 15.79 - Total use 54.86 1.04 52.64 0.09 -Ending stocks 0.43 - 0.41 - -Stocks-to-use (pc) 0.79 -0.02 0.78 -0.00 October-September markeing year — USDA, Argus Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump Brazil tariff threat concerns US beef importers

25/07/11

Trump Brazil tariff threat concerns US beef importers

Sao Paulo, 11 July (Argus) — US president Donald Trump's threat to apply a 50pc tariff on Brazilian imports was not welcomed by US beef importers, Brazilian beef exports association ABIEC's president Roberto Perosa said. Perosa said while meeting with around 50 US companies that import beef from Brazil this week he discussed the possible economic effects from the threatened tariffs , which could raise prices that he said used to be beneficial for American consumers. "It's a damaging decision with no technical basis in [the companies'] perspective," he said. Brazil beef imports into the US in April were nearly five times higher than imports from a year earlier, but they dropped in May and June due to other US tariffs . The US has been the second-largest buyer of Brazilian beef since 2022, with almost 230,000 metric tonnes (t) imported last year. The US accounted for 8pc of Brazil's beef exports in 2024, only behind China with 46pc, according to Netherlands-based investment bank Rabobank. Brazil, the world's largest meat exporter, shipped a record 2.9mn t of beef in 2024, a 26pc increase from a year before, according to ABIEC. Open gates The World Organisation for Animal Heath (WOAH)'s May decision to declare Brazil free from the highly contagious foot-and-mouth disease (FMD) affecting livestock without vaccinations may allow access to new markets and boost exports , according to the government. Brazil has opened its beef market to 19 countries so far, according to ministry of agriculture and cattle raising's trading and international affairs secretary Luis Rua. The last countries to open their markets to Brazilian beef were El Salvador and the Bahamas, according to the ministry. By João Curi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Canada focuses on new US deadline, diversifying trade

25/07/11

Canada focuses on new US deadline, diversifying trade

Calgary, 11 July (Argus) — Canadian prime minister Mark Carney reiterated his plan to diversify trade with countries "throughout the world" following another round of tariff threats, and another deadline, from US president Donald Trump. Carney's comments on social media late on 10 July came hours after Trump said Canada could expect a 35pc tariff on all imports , effective 1 August, repeating earlier claims that the northern country was not doing enough to stop fentanyl from crossing into the US. Canada has said these claims are bogus but in late-2024 still committed to spending $900bn (C$1.3bn) on border security measures over six years. "Canada has made vital progress to stop the source of fentanyl in North America," Carney wrote on X. The prime minister said he is now working to strike a new trade deal before the 1 August deadline. Trump and Carney last month agreed they would work toward a broad trade agreement by mid-July, with Canada at the time targeting 21 July to finalize a deal. The 35pc tariff would be separate from tariffs set for specific sectors, which include a 50pc tariff on copper imports. It is not clear if any imports currently covered by the US-Mexico-Canada trade agreement (USMCA) would be affected by Trump's latest tariff threats. Carney has advocated the need to shore up trade partnerships with "reliable" countries since being sworn is as prime minister in March, saying the old relationship with the US "is over". The energy-rich nation needs to build more infrastructure to unlock this potential, and with a surge in public support, is trying to entice developers with a new law to fast-track project approvals . But those are multi-year efforts and Canada is still trying to reach a deal with the US to keep goods moving smoothly. The two economies are highly integrated with $762bn worth of goods crossing the US-Canada border in 2024, according to the Office of the US Trade Representative. Canada on 29 June rescinded a digital sales tax (DST) that would have collected revenue from the US' largest tech companies, after US secretary of commerce Howard Lutnick said the tax could have been a deal breaker in trade negotiations. That show of good faith — which seemingly got nothing in return — was criticized within Canada and contrary to Carney's repeated "elbows up" mantra in the face of Trump's threats. By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Indonesia’s Alfamart invests $1mn in UCO firm Noovoleum

25/07/11

Indonesia’s Alfamart invests $1mn in UCO firm Noovoleum

Singapore, 11 July (Argus) — Indonesian convenience store retail chain Alfamart said this week it has invested $1mn into Singapore-based used cooking oil (UCO) collector Noovoleum. Noovoleum — established in 2023 — automates UCO collection in Indonesian cities, including in Java, Sumatra and Bali, with their "UCOllect" boxes, of which there are 100. It collects about 100t of UCO a month, which is sold to domestic buyers such as UCO aggregators, said the company's chief investment officer Egis Rimkus. Citizens deposit UCO into the boxes, which have an in-built quality testing system. They will then receive cash via the "UCOllect" application, if the quality of the oil is accepted. The rate varies every month and is currently at 5,500 rupiah/litre ($0.34/litre). There are now boxes at 12 Alfamart outlets across Indonesia. The final use of the UCO is unconfirmed, but some could be processed into biodiesel, market participants said. Indonesia has halted exports of UCO since January. There have been recent attempts to export refined UCO under a HS code unaffected by the ban, but bulk volume trades have likely still not been successful, traders told Argus . Noovoleum is in advanced negotiations with possible partners in Malaysia, Thailand and Singapore in light of Indonesia's export halt, with at least one partnership to be launched this year, Rimkus added. Noovoleum also placed "UCOllect" boxes at 10 gas stations belonging to state-owned Indonesian refiner Pertamina last December. This was part of a pilot project between the two. Pertamina has been trialling sustainable aviation fuel (SAF) production since the second quarter of 2025 , but large-scale production of SAF and hydrotreated vegetable oil (HVO) is expected only in 2029 , the refiner said. By Sarah Giam Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Malaysia to roll out 20pc biofuels mandate in 2022

Related news posts

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