Average outright RED RME biodiesel prices in northern Europe in November were lower month on month due to tempered demand as the market nears the end of 2015, despite low Rhine levels causing reduced availability of RME volumes in Europe.
The outright RED RME price in November averaged $883.54/mt, down $23.01/mt on the month, while the RED RME premium over ICE gasoil futures remained fairly stable in November, averaging $447.10/mt, down just $0.60/mt on the month.
Low Rhine levels restricted the movement of RME and rapeseed oil volumes in Europe, causing tightness in some locations in Germany and supporting the premium. However, demand for RME fell in November, keeping the premium balanced month on month.
Biodiesel demand in Europe eased during the second half of November, with most blenders well on track to reach their 2015 mandates and with the market's focus shifting to 2016.
"Everyone has already booked their business [for 2015]," a source said, with low liquidity on the spot market as a result.
A second source said there has already been solid demand for next year.
Outright prices, however, dipped on the month as continued support in the premium could not offset the fall in the underlying ICE gasoil futures.
The front-month ICE gasoil contract averaged $435.15/mt in November, a more than three-year low, falling $22.45/mt on the month.
