Southeast Asian August biodiesel exports drop: AmSpec

Southeast Asian biodiesel exports fell to just 6,300t in August from 19,000t in July and 127,000t a year earlier, according to cargo surveyor AmSpec.

All sales were from Malaysia, with 5,000t from Port Klang to the EU and 1,300t from Pasir Gudang to Asia Oceania.

Weaker transport fuel demand during Covid-19 lockdowns, along with feedstock palm oil holding a more than $300/t premium over gasoil for the first time since April 2016, has shattered the export market in 2020. January-August Malaysian exports slumped by 44pc to 258,000t from 464,000t during the same period in 2019.

Indonesia failed to export any biodiesel for the sixth month out of eight this year, having shipped just under 18,000t compared with 608,000t during January-August period last year.

A higher 30pc domestic biodiesel mandate, $25/t export duties and countervailing duties imposed by the EU and have all conspired to close the arbitrage from the former key supplier.

By Amandeep Parmar