Indonesia’s used cooking oil exports reached an all-time high of 22,000t in July from 20,000t in June and 14,000t a year earlier.
More than 133,000t was exported over the first seven months of this year, up from 85,000t during January-July 2019. The Netherlands took 55,000t, Malaysia 31,000t, Singapore 21,000t and South Korea 11,000t.
Waste-based biodiesel and hydro-treated vegetable oil producers are scrambling to find new sources of the feedstock, with biofuel mandates rising in Europe and additional production capacity coming on line in Asia-Pacific and the EU.
By contrast, the country’s palm-based biodiesel exports slipped to 4,000t in July from 6,000t in June and 187,000t a year earlier.
Indonesia’s exports totalled just 13,400t from January-July, down from 834,000t during the year-earlier period. Spain has been the biggest buyer so far this year, taking 6,000t, followed by China with 5,200t and South Korea with 2,000t.
Sales fell this year after Jakarta banned exports to ensure producers fulfil the country’s higher 30pc biodiesel mandate implemented on 1 January.
But Covid-19 lockdown measures have stifled domestic transport fuel demand, leading the government to temporarily allow biodiesel exports until the end of this year. Suppliers are still struggling to offload cargoes abroad despite the renewed allowance, with a +$200/t palm oil-gasoil spread, $25/t export levy and 8-18pc EU anti-subsidy duties against Indonesian biodiesel all slamming the arbitrage window shut.
Source: Argus Media
