Singapore — Malaysian biodiesel exports in June saw a sharp rebound from May of over 20,000 mt to reach the second-highest level this year, data released by the Malaysian Palm Oil Board showed Friday, as the open arbitrage to Europe boosted buying interest from Western importers.
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Biodiesel imports stood at 22,670 mt in June, compared with just 1,314 mt in May. It was the highest monthly figure since 25,616 mt in February; imports then slipped to a monthly average of less than 1,000 mt over the subsequent three months.
The Asia-EU arbitrage had been open from the end of May, Platts data showed, taking into account loading prices from Southeast Asia and adding freight of around $80-90/mt for volumes of around 2,000 mt, a $20/mt premium for RED-spec and a 6.5% import tax into Europe.
Spot RED PME prices in Europe in June averaged at $902/mt, which worked to a netback of around $740-760/mt FOB SEA, while average spot PME prices in June were $689/mt FOB SEA, yielding profits of around $50-70/mt for arbitrageurs.
At least four spot trades were confirmed in a wide range of $725-740/mt FOB SEA basis for June-loading parcels.
Trade sources reported that a 20,000 mt cargo of PME was loaded during the first half of June, basis Straits of Malacca, and was bound for Barcelona.