Oversupply of Biodiesel Worries Producers

Business News/Analysis, Feedstocks, Field/Orchard/Plantation Crops/Residues, Malaysia, Marketing/Market Forces and Sales, Opinions, Policy, Thailand

December 27, 2017

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(Bangkok Post) … The commonly used biodiesel B100 reportedly has 13 factories producing 6.6 to 7 million litres a day, but national demand is around 3.3 to 3.5 million litres per day, said Sanin Triyanont, president of Thai Biodiesel Producers Association. According to the association, the new B100 factories are owned by Global Green Chemicals Plc and PTG Energy, which will be producing and using their own supply. It was also reported the country will see an on-going trend of traditional buyers of biodiesel beginning to produce their own, which will leave the traditional suppliers fighting over the remaining areas of the market share.

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This has caused production cost problems for Thailand. Malaysian producers use up to 80% of their capacity, which allows the industry to remain economically feasible. Furthermore, the Malaysian government recently announced they will mix 7% of B100 into ordinary diesel and make biodiesel B7 readily available year-round in 2018. READ MORE

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