Argentinian biodiesel exports collapse following US tax hike

Argentine exports of biofuels have fallen 30% in the third quarter of 2017 versus the year before, selling just 353,034 mt in July through September versus 507,260 mt in the same corresponding period.

The figures mean Argentina has exported just over 1 million mt of biofuels in the first nine months of the year, flat on 2016.

The move comes following the decision by the US Department for Commerce in August to apply countervailing duties to biodiesel imported from Argentina.

The US takes around 90% of Argentina’s biodiesel exports each year and earlier this month clarified that it would slap an import tax of 72% on the fuel entering its market.
The move came just two months after Europe had cut its import tax to 4-8% on soy methyl-ester (SME) from 22-25%.

Biodiesel traders have told Census that SME has been turning up in Europe for several months -a move that has pressured FAME 0 prices.

“Mostly traders are bringing it across,” said one Swiss-based biodiesel trader, adding that: “It can’t last for long as Europe will likely do the same as the US.”

Last month it emerged that the European Biodiesel Board had lodged a complaint with the European Commission on November 3.