During the week ending June 21, 2024, multiple factors led to a decrease in Biodiesel prices across the APAC region. The decline was driven by reduced demand from Europe and other importing countries, strategic trading maneuvers, and seasonal adjustments in Biodiesel usage. This situation was exacerbated by EU regulatory actions, regional oversupply issues, and subdued demand, collectively intensifying downward price pressures in the Biodiesel market, reporetd Chemanalyst News.
Over the same period, Biodiesel prices in the Chinese market fell by 1%, dropping from USD 1060/MT to 1050/MT. This marks the third consecutive week of decline, largely attributed to downturns in the Palm Oil market. The weakening Palm Oil prices have significantly impacted Biodiesel market dynamics. Furthermore, strained EU-China relations have escalated concerns about potential trade conflicts, especially if existing trade tariffs between these economic powers intensify. European leaders have voiced criticisms regarding what they perceive as unfair competition in the global electric vehicle (EV) market, leading to the imposition of trade tariffs and further straining economic ties.
Concurrently, there has been a notable reduction in Biodiesel demand from European and other international markets over the past three weeks. Several underlying factors have influenced these broader market trends. The Asian Palm Oil Alliance (APOA) has urged Hindustan Unilever (HUL) to reconsider its decision to lower palm oil content in its products, contributing to declines in palm oil prices and sparking environmental concerns. The decrease in palm oil prices has been a significant driver in the overall decline of Biodiesel prices, as cheaper raw materials become more accessible for production. Globally, Biodiesel production is expected to increase as producers capitalize on lower raw material costs and strive to manage excess inventories. This downturn is primarily a consequence of diminished Biodiesel demand and declining upstream palm oil prices.
