World Biodiesel Production to Decline this Year

Oil World has projected world biodiesel production in calendar year 2020 to slightly decline by 2.9% to 42.90 million MT from year-ago at 45.69 million MT.  Oil World said the current Covid-19 pandemic has severely affected the biodiesel market and cited movement restrictions, reduction in fuel consumption, and unusually low crude mineral oil prices as factors affecting the decline in world biodiesel production.   

Except for the United States, Brazil and Indonesia, most biodiesel producers are to reduce production this year.  EU-28 will remain the biggest producer of biodiesel at 13.70 million MT (15.08 million year-ago), followed by (in million MT): Indonesia at 7.70 (7.48), United States at 7.40 (7.35), Brazil 5.20 (5.16).  Other countries with smaller production are: Argentina at 1.60 (2.15), Singapore at 1.52 (1.75), Thailand at 1.37 (1.55), Malaysia 0.82 (1.20), Colombia 0.53 (0.58) and Others with combined output at 3.06 (3.39). 

Palm oil is to remain the biggest feedstock at 16.85 million MT (17.62 million) with  Indonesia leading the pack at 7.70 million MT (7.48 million), followed by EU at 4.16 million MT (4.49 million), Thailand 1.37 million MT (1.55 million), Malaysia 0.82 million MT (1.20 million), Singapore 0.62 (0.68), Colombia 0.53 (0.58) and the United States 0.39 (0.30).  Soybean oil will still be the second biggest feedstock at 10.83 million MT (11.26 million) with US utilizing 4.02 million MT (3.87 million MT), Brazil 3.80 million MT (3.72 million), Argentina 1.60 million MT (2.15 million), and EU-28 0.87 million MT (0.91 million) all of which are major soybean producing countries.

Rapeseed oil is third at 6.17 million MT (6.60 million), mainly used in the EU, with projection at 5.25 million MT (5.64 million) and the US at 0.55 million MT (0.56 million). Fourth feedstock in the list was used cooking oil with total at 4.34 million MT (5.11 million) mainly in the EU at 2.30 million MT (2.80 million) as well as the US at 1.17 million MT (1.27 million).  Tallow follows at 2.62 million MT (2.74 million) with US utilization projected at 0.62 million MT (0.64 million MT), EU at 0.61 million MT (0.60 million MT), Brazil at 0.59 million MT (0.61 million) and Singapore at 0.50 MT (0.57 MT).  Projection for Philippine coconut oil feedstock was placed at 0.05 million MT (0.06 million MT) and for sunflower oil at 0.56 million MT (0.66 million).