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US biodiesel market: rising prices will continue in 2022, making biofuel uncompetitive

IndexBox has just published a new report: “US – Biodiesel – Market Analysis, Forecast, Size, Trends And Insights”. Here is a summary of the main findings of the report.

US biodiesel prices soared 59% year-on-year last year, making biofuel less competitive with fossil fuels. The average FOB price of U.S. B100 biodiesel was $5.58 per gallon in November 2021, while the average highway price of conventional diesel was $3.74 per gallon.

Biodiesel prices soared in the United States in 2021, and their growth is expected to continue this year. According to USDA data, the average FOB spot export price of B100 biodiesel from plants in Illinois, Indiana and Ohio reached $5.58 per gallon in November 2021, up by 59% compared to 2020. The average on-road price of conventional diesel has increased by 41%. %y/y at $3.64 per gallon, still well below biodiesel.

Rising plant feedstock and energy costs were the main reasons for the increase in biodiesel prices and will further propel biofuel prices this year. According to World Bank forecasts, the price of soybean oil, one of the important raw inputs for biodiesel production, is expected to rise nearly 4% to $1,425 per tonne in 2022. fossil fuels should also remain at a high level. level of 2021, which implies an increase in energy expenditure in the manufacture of biodiesel.

US biodiesel exports by country

US biodiesel exports jumped to 476,000 tonnes in 2020, up 25% from the previous year’s figure. In terms of value, supplies fell slightly to $381 million (IndexBox estimates).

Canada (424,000 tonnes) was the main destination for US exports, with an 89% share of total supplies. In addition, exports to Canada exceeded the volume sent to the second main destination, Peru (19,000 tonnes), more than tenfold. The Netherlands (14,000 tonnes) was in third place in this ranking, with a share of 2.9%.

In terms of value, Canada ($351 million) remains the largest foreign market for US biodiesel, accounting for 92% of total exports. The Netherlands ($9.9 million) ranked second in the ranking, with a 2.6% share of total supplies. It was followed by Peru, with a share of 2.3%.

Source: IndexBox Platform