July imports into the US of renewable diesel from Singapore reached an all-time high of 53.4 million gallons, which is 8% higher than June and on a yearly pace of 1.8 million metric tons. This makes Singapore the leading exporter of HVO in the world and, of course, the largest exporter of such products to the US. The NESTE Singapore plant is, for all intents and purposes, part of the overall US renewable diesel capacity since it is capable of generating RINs, and it is only by selling its production into the US that a producer in Singapore can recover its RINs value - meaning the US is its best market. The EIA data also showed that Canada has kickstarted its RD production and while it used to be an importer of US renewable diesel, it is now an exporter to the US. This Canadian export capacity, nevertheless, is only 1/5 of what Singapore is exporting as Canada actually uses RD product domestically while Singapore does not as there is no mandate in Singapore. Meanwhile, in Europe, the biodiesel barge market in NWE was very active again with premiums skyrocketing for UCOME to +721 over ICE gasoil while RME (winter bio) is +567 and FAME is trading at +434 while BOGO has barely changed at +257... although RSO prices are still in contango like Soybean oil, flat prices have been higher and replacement Gross Margin on RME is $155/mt, which is a little better than a week ago. Although there have been dire warnings about increasing crop-based biodiesel mandates in Indonesia, today Brazil's President has signed a green deal enshrining increasing biodiesel blend levels to increase by 1% every year until it reaches 20% in 2030. Crop harvest news in the US remain fast with 47% of the crop harvested despite all the weather issues in Florida/Southeast mountains. No shortages of feedstocks in the US to make it a record production year for RD/Biodiesel well above RVOs while D4 RINs still trading at 70cents.
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