Argentina concerned about the impact of the US’s growing love of HVO

January 24, 2023 |

In Argentina, Clarín reports that according to a report by the Rosario Stock Exchange (BCR) carried out by Julio Calzada and Guido D’Angelo, the HVO consumed in the first nine months of 2022 in the United States far exceeded that of all of 2021 and 2022 would have closed with a volume of consumption between 5 and 6 million tons, with the potential to reach 9 million in 2023 and close to 12 in 2024. This drives an expansion of crushing plants and the construction of new plants in the US and Canada in which the oil necessary to produce HVO is obtained and also, in parallel, soybean meal. This extra supply of meal would compete with one of the main products in the Argentine export basket and would depress international prices for soybean pellets.

The BCR estimates that in the next five years the production of soybean meal in the US could grow by more than 11 million tons and its exports by more than 6.4 million tons, in a world market that may not expand its demand in the same magnitude.

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Category: Fuels

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