European biofuels surge as demand rises and veg oils prices rally

Key takeaways:

• Used cooking oil prices in the domestic Chinese market are rising due to strong local demand from sustainable aviation fuel producers.
• High crude palm oil prices are supporting strong demand for category 3 animal fats while category 1 and 2 markets see a decline.
• Advanced feedstock price ideas are increasing as more flow arrives from South America and Asia into the ARA market.

European biofuels market sees stable used cooking oil prices

Trades for European-origin UCO were heard in a range of €1,040-1,060 ($1,200.81-1,223.91) per tonne in the DDP Northwest Europe market.

Fastmarkets assessed its daily used cooking oil, ISCC, ddp Northwest Europe price at €1,060 per tonne, down by €5 per tonne day on day but up by €20 per tonne from last week.

Fastmarkets’ daily used cooking oil, cif Amsterdam, Rotterdam, Antwerp assessment was unchanged day on day at $1,122 per tonne but up by $10 per tonne week on week.

Buying interest for imported UCO delivered in containers was heard in a range of $1,095-1,120 per tonne CIF ARA on Thursday, while offers were indicated at $1,125-1,230 per tonne for container shipments and around $1,310-1,320 per tonne for bulk deliveries.

Chinese domestic market pushes export prices higher

Stronger demand in the domestic Chinese market pushed export prices up, with sources reporting higher offers for UCO on an FOB China basis.

Fastmarkets revised its daily used cooking oil, bulk, fob China price assessment up by $20 per tonne day on day to $1,080 per tonne, marking a $60 per tonne increase week on week.

“We are hearing that sustainable aviation fuel producers are paying good prices for UCO in the local market in China, so export prices are up as a result,” a source said.

Mixed trends in European biofuels animal fat markets

Prices for category 3 animal fats increased, while the category 1 and 2 market was down during the reported period.

Fastmarkets assessed its weekly category 1 and 2 mixed animal fat, max 30% ffa, ddp Northwest Europe assessment at €850 per tonne, down by €45 per tonne week on week based on trading activity reported at that level.

High crude palm oil prices supported demand for category 3 animal fats, with Fastmarkets assessing its weekly category 3 bone fat, 5% ffa, 98%, ddp Northwest Europe price at €995 per tonne on Thursday, up by €5 per tonne week on week on higher ideas heard in the market.

“We expect demand to remain strong for animal fats in the next few weeks, while vegetable oil prices are rallying and there is buying interest coming from the US,” a Europe-based source said.

Price ideas also increased for advanced feedstocks, with more flow reported coming from South America and Asia into the ARA market.

Fastmarkets assessed its weekly soap stock acid oil, cif Amsterdam, Rotterdam, Antwerp price at $1,010 per tonne, up by $10 per tonne week on week.

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