SAF production costs increased in December

HIGHLIGHTS Asian sustainable aviation fuel (SAF) production costs rose in December from the previous month, with Platts-assessed waste cooking oil-based SAF rising $96.30 per tonne, or 5.13%, from the previous month to close at $1,974.43 per tonne on December 31, and palm oil fatty acid distillate-based SAF rising $19.47 per tonne, or 1.01%, to $1,952.58 per tonne over the same period, according to S&P Global Commodity Insights. However, trade sources have seen lower prices in the market in December. FOB Straits SAF prices closed at $1,903/mt on December 31, down 10.6% on the month, according to S&P Global Commodity Insights. Market participants reported a steady increase in offers from China, most of which were cheaper than those from European producers. A source in China said in mid-December: “For SAF FOB China, I see prices around $1,850-$1,900/t.” By comparison, Platts estimates that the cost of producing SAF ex-mill in Northwest Europe was $2,313.18/t on December 16, ...