| RSS
Business center
Office
Post trade leads
Post
Rank promotion
Ranking
 
You are at: Home » News » internal »

European RME biodiesel premium hits 32-month low on bullish gasoil

Increase font size  Decrease font size Date:2018-02-01   Views:663
The European RME premium to front-month ICE gasoil futures fell to a 32-month low Friday on bullish gasoil.

S&P Global Platts assessed the RME premium at $239.25/mt FOB ARA Friday, down $2 day on day, to its lowest since May 22, 2015.

Gasoil, which hit a 38-month high of $628.50/mt Friday as RME fell $14.75/mt on the week.

This movement comes as uncertainty surrounded the market over the EU Council's decision to remove their appeal against the lifting of Argentine and Indonesian antidumping duties.

The EU council withdrew its appeal against the lifting of antidumping duties on biodiesel imports from Indonesia and Argentina January 22 meaning the removal of the duties that have been in place since November 2013.

This will likely trigger an influx of biodiesel blends, causing prices to fall significantly and the contango out to the second quarter shallowing and the backwardation in the second half of the year narrowing on expectations of higher European stocks.

This decision will likely be welcomed by EU consumers as the expected influx into Europe is already pressuring down prices, while these are "tough times for [European] biodiesel producers," a source said.

With large volumes of SME coming into Europe at the moment and volumes of PME expected soon, RME prices are under considerable pressure and production margins are at the forefront of many producer's minds, with many left concerned as prices are still considerably below replacement cost.

"[They] need to decide whether they are going to carry on producing," another source said, referring to the extremely low margins that are expected to continue to narrow. As a result, producers may be forced to buy product, if they decide to cut production to cover short positions.
 
 
[ Search ]  [ ]  [ Email ]  [ Print ]  [ Close ]  [ Top ]

 
Total:0comment(s) [View All]  Related comment

 
Recomment
Popular
 
 
Home | About | Service | copyright | agreement | contact | about | SiteMap | Links | GuestBook | Ads service | 京ICP 68975478-1
Tel:+86-10-68645975           Fax:+86-10-68645973
E-mail:yaoshang68@163.com     QQ:1483838028