In the United Kingdom, S&P Global Platts noted that stocks of both UCOME and TME biodiesel in Europe have risen in recent weeks, sparking bearish sentiment about the remainder of the year. “Stocks of used cooking oil and tallow-based biodiesel have risen despite the backwardated market and weaker euro dominating the market and limiting imports into Europe,” according to S&P Global Platts.
“Blending for these second-generation biodiesel blends has increased in recent weeks, especially in Germany where larger quantities of high greenhouse gas saving biodiesel are consumed to meet the domestic mandate,” according to S&P Global Platts.
“The currency impact is felt to a greater degree in the waste-based biodiesel market than first-generation biodiesel as sales in Europe are conducted in euros, meaning currency exposure adds risk to these markets with imports into Europe in dollars,” according to S&P Global Platts.