EUROPEAN MARket prices of biodiesel and related products

- 29th August 2003 -

Summary :
The biodiesel market is characterised by crude rapeseed oil and Brent crude oil prices going up compared to our last report. This increase happens in a falling glycerine market price context with biodiesel price remaining steady. Biodiesel production is therefore earning a contribution to fixed costs and margin of EUR 56.3 pmt according to our model based on spot prices in Germany.

VEGETABLE OILS	
August 03	
February 04		                        Model
               Cost Calculation                       Eur/t	
Crude Rapeseed Oil FOB Rotterdam
	EUR 491 pmt	EUR 508 pmt		Crude rapeseed oil ex factory	481,0	
Soyabean Oil           FOB Rotterdam	EUR 499 pmt	EUR 459 pmt		Semi-refining cost
Loss (3%)	20,0
15,0	
Sunflower Oil          FOB Rotterdam	EUR 492 pmt	EUR 495 pmt		Cost of refined rape oil ex refinery	516,5
	
				Freight to biodiesel plant
	10,0

METHANOL	
Spot			Cost of semi refined rapeseed oil DDP biodiesel factory	526,5	
Average Q3 price FOB Rotterdam 	EUR 225 pmt			
Methanol useage (11%) delivered	
27,5
	
				Crude glycerine credit 10% at 100% concentration ex factory	
(23,1)	

GLYCERINE DDP NW Europe
In bulk	
August 03	
February 04		Material cost of biodiesel ex works	530,9	
Crude Glycerine basis 80% Kosher	EUR 225 pmt
(Traded)	EUR 150 pmt
(Estimation)		Variable production costs
	30,0	
Kosher Refined glycerine 99.5% Eur.Ph 	EUR 700 pmt
(Traded)	EUR 600 pmt
(Estimation)		Out of pocket cost of biodiesel ex works	560,9	
				Biodiesel selling price
Ex works  EUR 545/1000 liters	

FUEL PRICES	
Spot			Divide by 0,883 (specific gravity) 	617,2 	
Biodiesel Din 51606 EXW factory 
Germany – Excluding VAT 	EUR 54,50
per 100 litres			Contribution to fixed costs and margin of biodiesel production 	EUR 56,3	
Diesel oil EN590      CIF Rotterdam 	USD 262 pmt					
Biodiesel selling price at the pump in Germany – Including VAT	EUR 73.00
per 100 litres			This is a model for biodiesel product in Germany and  is based on certain assumptions (for example, freight 		
Diesel Fuel selling price at the pump in Germany – Including VAT	EUR 85,50 
per 100 litre			costs and variable costs) which may 
differ from factory to factory.		
Brent Crude Oil    (15 days quote)	USD 31,56 
per barrel					

notice to the reader

These quotations are averages of price ranges pertaining in the market, during the week reported. They are based on bids, offers and trades either posted on Oleoline's market place or handled by our sister company HBI during the period concerned, and this we believe them to be representative of market levels.
However, Oleoline cannot accept any responsibility for these figures nor liability for commercial decisions based on the content of this report. Violation of copyright is an offence. Any distribution of this report without Oleoline’s express agreement is a copyright violation.

For a detailed analysis of the world glycerine market, you may wish to subscribe to Oleoline's Quarterly Glycerine Report by clicking here.