Mumbai, 24 June 2024 (Commoditiescontrol): Biodiesel prices across the APAC region saw a notable decline during the week ending June 21, 2024. The drop was driven by decreased demand from Europe, strategic actions by traders, and seasonal adjustments in biodiesel usage. Key contributing factors included EU regulatory measures, regional oversupply, and weak demand.
In China, biodiesel prices fell by 1% to USD 1050/MT, marking the third consecutive week of decline, influenced by a downturn in the palm oil market and strained EU-China trade relations. European leaders have also criticized perceived unfair competition in the EV market due to Chinese government subsidies.
Globally, reduced demand from Europe and other importers has significantly impacted biodiesel prices. The Asian Palm Oil Alliance urged Hindustan Unilever to reconsider palm oil content in products, contributing to a decline in palm oil prices. This has made raw materials cheaper for biodiesel production, exacerbating the price drop.
Indonesia has faced challenges with oversupplied markets, leading to decreased palm oil prices due to trade restrictions by India. Despite Indonesia's efforts to alleviate palm oil stock build-up, many offshore refiners have shut down, and upstream market declines have reduced raw material prices for biodiesel production.
ChemAnalyst projects that biodiesel prices will continue to decrease in the coming weeks, influenced by reduced demand in the transportation sector and ongoing restrictions on APAC biodiesel in the European market. This downward trend is expected to persist for several weeks, indicating continued price declines in the biodiesel market.
(By Commoditiescontrol Bureau; +91-9820130172)
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