EU Demand for Palm, Rapeseed Oil Gains on Biodiesel Import Curbs
European Union demand for biofuel ingredients including palm oil and rapeseed oil is increasing as the bloc boosts domestic production and cuts imports of finished biodiesel, Oil World said.
Biodiesel production is climbing within the EU as the bloc implements duties on imports from Argentina and Indonesia, the Hamburg-based researcher said. The EU imported 494,000 metric tons of biodiesel from Argentina this year, down from 1.273 million tons in the first 10 months of 2012, Oil World said. Anti-dumping duties may go into effect at the end of November, ranging from 217 to 246 euros ($299 to $339) a ton on Argentine biodiesel and 122 to 179 euros a ton on supplies from Indonesia, it said. Provisional tariffs have been in place since May.
“The steep decline in arrivals of biodiesel has triggered a recovery in EU biodiesel production, thus raising feedstock requirements, primarily of palm oil and rapeseed oil,” Oil World said. “Permanent hurdles for biodiesel imports from the two key countries will lift the dependence on rapeseed oil as a feedstock for the European biodiesel market.”
EU imports of palm oil for technical use, including for making biodiesel and for heat generation, were 2.45 million tons this year through July, 63 percent more than in the same period in 2012, Oil World said. Supplies classified for technical use can be imported duty-free.
Rising EU demand for rapeseed helped Ukraine’s exports during September climb to 472,000 tons, near a record 497,000 tons achieved in September 2008, Oil World said. Shipments of rapeseed oil climbed to a monthly record of 21,000 tons.
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