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Biodiesel-Output Growth Seen Slowing With EU Curbing Argentina
Biodiesel-Output Growth Seen Slowing With EU Curbing Argentina
05/06/2013 (Bloomberg) - Global biodiesel output will expand this year at the slowest pace since at least 2008 as Argentine production declines amid export curbs from the European Union, Oil World said.
World production of the biofuel may rise to 24.4 million metric tons in 2013, up 4.3 percent from a year earlier, the Hamburg-based researcher said today in an e-mailed report. Output in Argentina, last year’s third-largest producer, may plunge 29 percent to 1.75 million tons, a four-year low. As of last year, the country’s production had more than tripled since 2008. Biodiesel can be made from products including soybean oil, palm oil and rapeseed oil.
The European Commission, the EU’s administrative arm, imposed tariffs on Argentine and Indonesian biodiesel last week, alleging that the countries sold the biofuel in the 27-country bloc below cost. Argentina’s biodiesel exports from January through April declined to 320,000 tons, about half as much as in the same four months in 2012, Oil World said.
“As the Argentine biodiesel industry is highly dependent on exports, the severe decline of export sales so far this year has dealt a heavy blow to the industry,” Oil World said. “Biodiesel demand from the EU-27 has suffered pronouncedly from the looming decision on import restrictions.”
Argentina’s exports of soybean oil, the main product used by the country’s biodiesel industry, may surge 19 percent to 4.8 million tons during the calendar year, Oil World said.
EU Output
The EU, the world’s largest biodiesel maker, may increase output 1.3 percent to 9.6 million tons in 2013, Oil World said. Palm-oil use in EU biodiesel rose to a record 1.87 million tons in 2012, taking share from rapeseed oil.
In the U.S., production may jump 18 percent to 3.9 million tons, Oil World said. Tight supplies of oils and fats may limit biodiesel output until September, when the next soybean harvest starts. Soybean oil accounted for 56 percent of biodiesel production from October through March, down from 63 percent a year earlier as the share of corn oil, recycled oils and tallow to make the biofuel increased, according to the report.
Brazil’s biodiesel production may climb 8.8 percent to 2.6 million tons in 2013, Oil World said. The share of soybean oil used to make the biofuel will rise to 2.06 million tons. The country’s soybean oil exports “are likely to stagnate” at about 1.75 million tons during the calendar year.
World production of the biofuel may rise to 24.4 million metric tons in 2013, up 4.3 percent from a year earlier, the Hamburg-based researcher said today in an e-mailed report. Output in Argentina, last year’s third-largest producer, may plunge 29 percent to 1.75 million tons, a four-year low. As of last year, the country’s production had more than tripled since 2008. Biodiesel can be made from products including soybean oil, palm oil and rapeseed oil.
The European Commission, the EU’s administrative arm, imposed tariffs on Argentine and Indonesian biodiesel last week, alleging that the countries sold the biofuel in the 27-country bloc below cost. Argentina’s biodiesel exports from January through April declined to 320,000 tons, about half as much as in the same four months in 2012, Oil World said.
“As the Argentine biodiesel industry is highly dependent on exports, the severe decline of export sales so far this year has dealt a heavy blow to the industry,” Oil World said. “Biodiesel demand from the EU-27 has suffered pronouncedly from the looming decision on import restrictions.”
Argentina’s exports of soybean oil, the main product used by the country’s biodiesel industry, may surge 19 percent to 4.8 million tons during the calendar year, Oil World said.
EU Output
The EU, the world’s largest biodiesel maker, may increase output 1.3 percent to 9.6 million tons in 2013, Oil World said. Palm-oil use in EU biodiesel rose to a record 1.87 million tons in 2012, taking share from rapeseed oil.
In the U.S., production may jump 18 percent to 3.9 million tons, Oil World said. Tight supplies of oils and fats may limit biodiesel output until September, when the next soybean harvest starts. Soybean oil accounted for 56 percent of biodiesel production from October through March, down from 63 percent a year earlier as the share of corn oil, recycled oils and tallow to make the biofuel increased, according to the report.
Brazil’s biodiesel production may climb 8.8 percent to 2.6 million tons in 2013, Oil World said. The share of soybean oil used to make the biofuel will rise to 2.06 million tons. The country’s soybean oil exports “are likely to stagnate” at about 1.75 million tons during the calendar year.