Malaysia’s biodiesel exports in explosive growth

Malaysia's biodiesel exports surged twelvefold year on year to 46,601mt in July, bolstered by an open arbitrage to Europe.

Exports are at their highest level since the Malaysian Palm Oil Board began reporting statistics in January 2008.

The July total was up from 3,610mt in July 2014 and also up 105.56% from 22,670 mt in June, the board's data shows.

The total value of the July exports was reported to be RM127.47 million (€28.1 million).

An arbitrage window between Asia and the EU swung open at the end of May.

While the window has been narrowing in August due to lower spot RED PME prices in Europe in the leadup to the switch to winter-spec biodiesel, but nevertheless, it remains open on paper.

The average spot PME price in July was $663.45/mt FOB Southeast Asia, down 3.7% from $689/mt in June.

With the Malaysian ringgit at a 17-year low of 3.9575 against the greenback, the country's exports could continue to attract European buyers.

Malaysia's biodiesel exports have fluctuated wildly in 2015, dropping to 186mt in April before picking up again in subsequent months.