Buenos Aires, October 24th. Just one customer remains buying the Argentine biodiesel: the European Union. According to the official data from the National Census and Statistics Institute (INDEC), biodiesel exports reached 806K tons between January and September, which entered the EU throughout two access points: Malta and the Netherlands.
“The election of the countries to enter the biodiesel depends on its logistic and handling capabilities and are often chosen by fuel traders, which buy the Argentine biodiesel to sell it to the oil companies in the European Union”, a source of eFarmNewsAr.com in the renewable fuel business told.
This year, the exports started in March, when the new protocol was agreed between the parts. Those month exports totalized 60K tons and climbed to 193K tons in May. Last September, it reached the second-largest monthly volume with 184K tons.
“We lost the first two months of the year, but we expect that the year will conclude with one million tons of biodiesel exported”, the source estimated. Last year exports reached 1.4 million metric tons.
On the other hand, and according to the data of the Energy Secretariat from January to August, biodiesel production is down. Year over year, production dropped 18%, sales to the domestic market 5% and exports 42%.
But also the companies focused on supplying the domestic mandatory-blend market experienced troubles during August. That month, the economic turbulence (currency depreciation) drove those companies to stop production, since biodiesel prices (fixed by the Government in Pesos) didn’t compensate for the rising cost production (in dollars).
For example, the production of the Diaser factory dropped from 6,754 tons in July to 936 tons in August, while Biobal production dropped from 4,187 to 822 tons.