Although in the last two months biodiesel exports have begun to move with a bit more dynamism than in the first half of the year —we are still at very low figures— the October figure is that as of the 20th, 30,600 tons were shipped to the Netherlands, the gateway to Europe, from two terminals in Greater Rosario.
But the colorful detail is that the import operation was handled by the Abu Dhabi National Oil Company (ADNOC), according to port records, the main oil company of that kingdom.
And that is not all. Another import operation destined for Europe is also recorded, this time via Belgium and for 30,300 tons, carried out by Trafigura, a company dedicated to the commodities business (heavily involved in mining and energy) known for being the owner of Puma Energy.
ARGENTINE BIODIESEL REACTIVATES EXPORTS
The fact that oil companies are buying Argentine biodiesel is not new. Last month a shipment of 30,000 tons organized by Exxon Mobil was recorded, also via the Netherlands access route, while in August it was Total (TOTSA) that imported 30,600 tons via Belgium.
Personal contacts in Europe point to several reasons for the sudden interest in Argentine biodiesel:
a) The fact that the European Parliament has halted the initiative to block Argentine soybean-based biodiesel.
b) The relative biodiesel/petroleum price leaves an attractive margin.
c) The conflict in Iran and Russia’s problems due to attacks on its refineries that restrict the flow of diesel to the EU.
Of all the arguments, the most interesting one to me is b): a relative price system that awakens the interest of oil companies which, logically, go straight to blending. Because neutral oil exports are also taking place, which is the raw material for biodiesel producers.
BIODIESEL, WITH EUROPEAN DEMAND
Speaking of Europe, the Spanish company MOEVE loaded 20,000 tons of this raw material during October, while another 14,000 also went to Spain and 12,000 to Italy, but without the buyer being identified in either case.
Regarding this product ultimately derived from soybean crushing, the Canadian market remains active through one of its main players, Braya Renewable Fuels, while the Emirati company IFFCO (International Foodstuff Company) is organizing the exports to West African countries.
According to shipping statistics, 69,790 tons were shipped in August, 85,100 in September, and 71,000 so far in October.
But regarding biodiesel, there is no reason to get excited. Between January and July only 89,205 tons were exported according to INDEC data, to which the August and September volumes of another 126,176 tons would have to be added.
So, at an average rate of 60,000 tons per month, or 180,000 in the last quarter, the year would end with around 400,000 tons, a volume that remains very far from the 1.6 million tons that used to be exported per year between 2014 and 2017.