For the Quarter Ending December 2024
North America
In the North American market during the fourth quarter of 2024, Biodiesel prices displayed a notable upward trend despite varying market conditions. Throughout the quarter, there was a consistent increase in prices, with a quarter-on-quarter rise of 4%, reflecting a robust and resilient market. The primary drivers for this increase were the rising production costs, notably due to higher feedstock prices such as soybean oil, and the continuing supply chain disruptions that limited availability. Additionally, the regulatory environment, with evolving policies such as the Biodiesel Tax Credit Extension Act, played a pivotal role in influencing market dynamics.
Despite facing some uncertainty regarding future tax incentives and the continuation of biofuel mandates, the demand for Biodiesel remained strong. The U.S. market benefited from increasing consumer and industry interest in renewable fuels, fuelled by growing environmental awareness and the government’s renewable energy targets. In particular, demand from the transportation and fuel sector continued to expand, as regulatory policies, including the Renewable Fuel Standard (RFS), continued to enforce the blending of biodiesel into transportation fuels. This helped to support stable demand, even amid fluctuations in feedstock availability.
The market sentiment remained generally bullish, driven by ongoing production difficulties, regulatory uncertainties, and higher feedstock prices. These factors combined to push prices upward, despite a relatively bearish outlook from some downstream sectors. As a result, Biodiesel prices continued to grow steadily in the quarter, reflecting the interconnected nature of regulatory support, feedstock costs, and market demand.
APAC
In the fourth quarter of 2025, the APAC biodiesel market exhibited a mix of price fluctuations and periods of stability. The APAC region witnessed a rise in prices in Q4 of 2024 especially South Korea reflecting a quarter-on-quarter increase of 7%. The market's trajectory was influenced by varying demand and supply dynamics, changes in feedstock costs, and policy measures. October began with marginal price declines, driven by oversupply and weakening demand, but the market rebounded mid-month with rising costs of feedstocks like palm oil and increased production activity. By the end of October, prices stabilized due to conflicting pressures of soaring feedstock prices and robust production, despite tepid demand. In November, biodiesel prices displayed mixed trends, initially gaining traction due to heightened feedstock costs, particularly in Indonesia and Malaysia, and stronger demand from the downstream transport sector. However, the latter half of the month saw price declines as upstream palm oil costs eased, leading to reduced production costs. Regulatory interventions, such as extended fuel tax cuts by the South Korean government, further contributed to price stabilization. December was characterized by relative stability interspersed with slight downward adjustments. Consistent demand from the transportation and fuel sectors balanced the increasing preference for ethanol-based biofuels. Weak export activity, along with steady production levels, ensured prices remained largely unchanged. Overall, the fourth quarter highlighted the importance of feedstock availability, global energy trends, and government policies in shaping market dynamics. Despite fluctuations, the market's upward trajectory underscores growing interest in renewable fuels and the sustained efforts to decarbonize South Korea’s energy landscape.
Europe
The European biodiesel market in Q4 2024 saw mixed trends, with prices rising by 6% quarter-on-quarter, especially in Germany driven by strong demand, regulatory changes, and tight supply conditions. Prices initially stabilized in October before increasing steadily in November, peaking in mid-December, and stabilizing again by the end of the year due to reduced demand during the holiday season. Supply remained constrained throughout the quarter, with challenges such as low production margins and limited feedstock availability.
Rapeseed oil imports rose by 17% in October, alleviating some supply issues, but the availability of used cooking oil (UCO) declined, further tightening feedstock supply. Demand remained strong, particularly from Germany, which increased its use of higher biodiesel blends in transportation. Exports to the USA also surged, reflecting growing demand for renewable fuels. Regulatory changes, such as Germany's revision of its greenhouse gas savings quota, supported higher biodiesel consumption.
The halt of GHG quota ticket rollovers for 2025-2026 created a bullish market sentiment. Despite these positive factors, Germany’s industrial production contracted by 1% in November, showing some broader economic challenges. Looking ahead to 2025, the biodiesel market is poised for growth, driven by new regulations, higher blending mandates, and renewable energy incentives, although geopolitical and economic uncertainties will continue to influence market dynamics.
For the Quarter Ending September 2024
North America
In Q3 2024, the Biodiesel market in North America experienced several key trends. The market continued to grow, driven by increasing demand for renewable energy sources and government support for biodiesel production. Prices remained relatively stable, supported by the availability of feedstocks such as soybean oil, palm oil, and animal fats. The cost-effective production helped maintain stable prices despite international market tensions. The demand for biodiesel was primarily driven by the transportation sector, which seeks to reduce carbon emissions and comply with stringent emission regulations. The U.S. Renewable Fuel Standard (RFS) and Canada’s Clean Fuel Standard (CFS) mandate the use of renewable fuels, driving the demand for biodiesel. The supply chain remained robust, with a consistent and reliable supply of feedstocks.
The extensive cultivation of oilseed crops in North America supports large-scale biodiesel manufacturing. There was an increased focus on environmental regulations, with governments and organizations pushing for the adoption of renewable energy sources to reduce greenhouse gas emissions. Biodiesel’s lower carbon footprint compared to conventional diesel aligns with national and state-level climate goals. The market is expected to continue its growth trajectory, supported by ongoing demand from the transportation sector and government incentives.
The quarter concluded with Biodiesel UCO CFR Houston prices at USD 1495/MT. The prices saw an increase of 1% from the previous quarter of 2024.However, challenges such as high operating costs and the need for more feedstock availability may impact the market's growth.
APAC
The third quarter of 2024 has been marked by a discernible upward trajectory in Biodiesel prices within the APAC region, driven primarily by fluctuating feedstock costs, supply chain disruptions, and rising demand for renewable energy sources. A key factor influencing market prices has been the volatility in palm oil prices, a critical feedstock for Biodiesel production. This volatility, coupled with logistical challenges and increased transportation costs, has contributed to the upward pressure on prices. Additionally, the burgeoning demand for cleaner energy alternatives, driven by stringent environmental regulations and the global shift towards sustainability, has further buoyed prices.
Focusing exclusively on China, which has experienced the most significant price fluctuations, the Biodiesel market showcased a dynamic pricing environment. Seasonality played a pivotal role, with increased energy consumption during peak periods amplifying demand. Despite a 0% change from the same quarter last year, prices saw a -1% decrease from the previous quarter of 2024. However, the stark contrast between the first and second halves of the quarter, marked by a 4% price increase, underscores the volatility and resilience of the market. The quarter concluded with Biodiesel UCO FOB Qingdao prices at USD 1175/MT, reflecting a positive pricing environment despite inherent challenges. This consistent upward trend indicates a market grappling with supply-demand imbalances while navigating the complexities of a transitioning energy landscape.
Europe
The third quarter of 2024 has been characterized by a significant upward trend in Biodiesel prices in the Europe Region. Various factors have influenced these price increases, including a rise in feedstock costs, stable demand from the transportation sector, and government policies promoting renewable energy sources. These factors have led to a bullish market sentiment, with prices steadily rising throughout the quarter. The Netherlands in particular, has experienced the most significant price changes, with prices increasing by 9% compared to the previous quarter. Despite a notable -45% decrease from the same quarter last year, the current quarter has seen a positive 5% price change from the first half to the second half. The quarter-ending price of USD 1200/MT of Biodiesel Ucome FOB Rotterdam in the Netherlands reflects the overall increasing pricing environment in the region, indicating a stable and upward trajectory in Biodiesel prices.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American biodiesel market experienced significant price fluctuations due to several adverse factors. Key drivers included reduced feedstock costs, particularly for soybean and palm oil, and decreased demand from sectors like heating oil and industrial lubricants. The economic recession in North America further exacerbated the situation, leading to lower consumer spending and reduced industrial activity.
Additionally, geopolitical tensions and disrupted supply chains, add to market strains and contribute to a bearish pricing environment in the mid-quarter. In the US, the most notable price changes occurred. Biodiesel prices dropped notably year-over-year and from the previous quarter, reflecting a persistent negative trend. Seasonal factors, such as warmer temperatures reducing heating demand, also played a role in the decline.
Prices decreased again in the first half of the quarter compared to the second half, indicating a steady downward trajectory. The continued decline highlights a fluctuating pricing environment driven by weak demand, oversupply, and broader economic challenges. Overall, Q2 2024 was marked by a downward shift in biodiesel pricing in North America, particularly in the US, due to complex market dynamics and external pressures.
APAC
In the second quarter of 2024, the biodiesel market in the Asian region faced a notable downturn, driven by reduced downstream demand, falling palm oil prices, and competition from alternative oils. Oversupply and high inventory levels further pressured prices, while geopolitical tensions and trade restrictions disrupted market dynamics. In South Korea, a key producer in the Asian region, the biodiesel prices experienced the most significant changes. Seasonal factors and supply-demand imbalances contributed to a sustained decrease in prices. The decline in upstream palm oil prices has directly impacted biodiesel costs. Compared to the same quarter of last year, biodiesel prices have dropped by 37%, reflecting the market's bearish sentiment. Prices decreased by 27% from the previous quarter by 11% between the first and second halves of Q2, indicating a persistent downward trend. The market has been characterized by oversupply, reduced demand, and competitive pressures, highlighting the volatility and challenges in the APAC biodiesel sector, with South Korea showing the most pronounced fluctuations.
Europe
In Q2 2024, the European biodiesel prices fluctuated due to several adverse factors. Key drivers included reduced feedstock costs, especially for rapeseed oil, and lower demand from sectors like heating oil and industrial lubricants. The economic recession across Europe worsened the situation, leading to decreased consumer spending and industrial activity. Geopolitical tensions and European sanctions on Asian exporters also disrupted supply chains, straining the market further and contributing to a bearish pricing environment. Germany experienced the most pronounced price changes in the region. Biodiesel prices dropped by 48% year-over-year and fell by 8% from the previous quarter, reflecting a persistent negative trend. Seasonal factors, such as warmer temperatures reducing heating demand, also contributed to the decline. The first half of the quarter saw a 1% drop compared to the second half, indicating a steady downward trajectory. The continued decline underscores a fluctuation in pricing environment driven by weak demand, oversupply, and broader economic challenges. Overall, Q2 2024 was marked by a shift in pricing trend for biodiesel in Europe, particularly in Germany, due to complex market dynamics and external pressures.
For the Quarter Ending March 2024
North America
The American Biodiesel market witnessed robust growth, propelled by its renewable and eco-friendly characteristics that made it an attractive alternative to conventional diesel fuels. This surge in demand was largely driven by biodiesel's ability to significantly lower greenhouse gas emissions and reduce reliance on non-renewable fossil fuels.
Government policies played a critical role in this expansion. Stricter environmental regulations were enforced, and initiatives to promote renewable energy sources gained momentum, positioning Biodiesel as a preferred option in various industries such as power generation and automotive. This shift was supported by a broader societal move towards sustainability, where both consumers and corporations were motivated to decrease their environmental impact.
A pivotal element fuelling this growth was the heightened awareness of Biodiesel's environmental benefits. The adoption of biodiesel was seen not just as a compliance measure, but as a proactive step by individuals and businesses eager to contribute to a more sustainable and responsible energy future. As this awareness grew, so did the integration of biodiesel into everyday use, further embedding it into the energy landscape.
APAC
During the first quarter of 2024, the APAC Biodiesel market encountered various difficulties. These challenges arose from the surge in feedstock prices, particularly palm oil, there was an oversupply of Biodiesel in the downstream market due to reduced demand from key importing nations. The market also faced instability due to competition from alternative biofuels such as bioethanol and biogas. In South Korea specifically, Biodiesel prices experienced a decline during this period. This decline was driven by reduced demand from the heating oil industry and increased imports. Despite these challenges, Biodiesel manufacturers in South Korea remained optimistic about the future of the sector. The market trend for the quarter was bearish, with prices and demand showing a negative correlation. Compared to the previous year's first quarter, there was a significant decline of -20% in the market's performance. Similarly, the percentage change in prices from the previous quarter was also -20%, indicating the market's ongoing weakness. The price of biodiesel UCO FOB Busan in South Korea for the current quarter stands at USD 1360/MT
Europe
The European Biodiesel market in Q1 2024 faced numerous challenges resulting in a significant price decrease. The market was predominantly bearish due to an oversupply and limited demand. The decrease in rapeseed oil prices played a crucial role in driving down Biodiesel prices, and the transportation challenges further impacted the market dynamics. The underperformance of Black Sea ports, issues in the Red Sea, and difficulties in alternative routes led to a substantial influx of sunflower oil into Europe at lower prices, adding to the downward pressure on the market. Major players like Germany and the Netherlands experienced price declines despite the increase in the price of rapeseed oil, their primary feedstock. Although prices decreased, the availability of Biodiesel in the downstream market remained moderate to high. Market dynamics were influenced by the expectation of increased demand, sufficient inventories, and anticipation of long build-up activities from suppliers, indicating the potential for further price declines in the coming months. The current price for biodiesel Ucome FD Hamburg in Germany for Q1 2024 stands at USD 1270/MT. Compared to the same quarter last year, there has been a significant percentage change of -51%. It is important to note that the primary reasons for the price decline were high supply, low demand, and the decrease in rapeseed oil prices. Furthermore, multiple shutdowns and disruptions in the market added complexity to a context where prices were increased.
