In the Tuesday pre-disclosure letter seen by S&P Global Platts on Wednesday, the measures outlined are "in accordance with Regulation (EU) 2016/1037 of the European Parliament on protection against subsidized imports from countries not members of the European Union."In the letter, the EC set out the proposed duties on companies currently exporting biodiesel to Europe.
If enacted, imports by Musim Mas would receive a 16.3% duty, Permata Group a tariff of 18% whilst Wilmar would receive a duty of 15.7%. Other Indonesian companies exporting to the EU would receive a duty of 18%.
The letter resulted in a spike in European fatty acid methyl ester (FAME 0) prices Tuesday as palm methyl ester - the main biodiesel export from Indonesia - is a major constituent of FAME 0. Tuesday's premium to ICE low sulfur gasoil futures for FAME 0 was assessed by S&P Global Platts at $240/mt FOB ARA, a $35 day-on-day increase. Although on Wednesday about half of that increase was given back as the price was assessed at $224.50/mt.
