Argentina data: Biodiesel output fell in November on year on lower exports

Buenos Aires — Argentina's biodiesel production fell 37.2% in November year on year, as exports plunged, while ethanol output held steady over the same period on sustained demand for the gasoline additive, a report from the Energy Secretariat showed Wednesday.

Output of biodiesel, made mostly from soy oil in Argentina, dropped to 163,012 mt in November from the year-earlier month, the department said in a data report.

The decline came as a 6.1% rise in domestic consumption of biodiesel for a 10% blend in diesel to 99,854 failed to offset a 58.9% drop in exports to 60,000 mt, the secretariat said.

Biodiesel production took a hit in 2017 after Argentina, which has more output capacity than domestic demand, lost economically-viable access to the US because of a hike in import duties in that market. In the previous years, the US had been the biggest importer of Argentina biodiesel, and the loss of that market put a limit on export growth, a main driver of production. This has limited exports to Europe, led by Malta and the Netherlands. The latter was the only destination for the exports in November, the data shows.

ETHANOL

Production of ethanol, made from corn and sugarcane feedstock in Argentina, rose 5.3% to 103,183 mt in November from the year-earlier month, while consumption for a 12% blend in gasoline increased 2.3% to 88,069 mt over the same period, the numbers show.

The country's biggest refiner — and buyer of biofuels — is state-run YPF, with a 55% share of diesel and gasoline sales, trailed by Shell-backed Raizen, BP-backed Pan American Energy and Trafigura.