VIEWS: Argentine Biodiesel Mandate May Significantly Impact International Market

10.14.09

Argentinian biodiesel producers are awaiting details of the final shape of the country's upcoming 5% biodiesel mandate, beginning Jan. 1, 2010. Under the proposed rule, Argentina's exporters would receive short-term contracts to supply the domestic market that would be gradually phased out as small national producers expand their capacity and logistics, Argus reports.

The B5 switch has potential implications for the international market. The prospect of Argentina's exporters being authorized to divert exports for domestic consumption would remove almost 60k mt/month from Europe's current 130k mt/month supply from Argentina.

This could have wider ramifications for imports to Europe and could raise international prices. Argentinian exports constitute 5.6% of the 12.5-million mt of biodiesel that the world produces each year.

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