An increase in Italian imports of palm oil mill effluent (Pome) continued in November, according to customs data.
The rise came ahead of any impact from Indonesia's decision to suspend export permits for Pome and used cooking oil (UCO).
Italian Pome imports under the 15220099 import code rose to 205,000t in January-November from 65,000t on the year. There is some lack of clarity on whether imports have increased or suppliers have improved adherence to import codes. November imports more than doubled on the year to over 12,000t (see chart).
According to Kpler data, cargoes of Pome — from Indonesia and Malaysia — continued to arrive in December and January at Italian ports that are home to hydrotreated vegetable oil (HVO) production.
Italian HVO output was reduced in the second half of the year by margins described as the worst on record. This appears to have encouraged Eni and other regional producers to undertake some planned works and trim throughput.
Kpler data show five seaborne cargoes totalling 30,000t leaving integrated Eni's 650,000 t/yr Gela HVO unit in October-December. This compares with around 90,000t shipped in the second quarter, 85,000t in the second and 70,000t in the first.
Italian imports of palm oil continued to fall, with 915,000t imported in January-November, down by 16pc on the year, and the lowest in eight years. Industrial-use palm oil fell by 30pc year on year to 510,000t. Given previous Argus tracking, Kpler, shipping and port data it is highly likely that part of this decline in industrial palm oil is actually the correct coding of Pome.
While Pome imports increased, deliveries of fatty acid distillates (Pfad) were lower by 24pc on the year to just under 510,000t in January-November. Some mislabelling of Pome as Pfad may also occur. Italian imports of UCO fell to 55,000t in the first 11 months of last year from 80,000t on the year. There may also be some mislabelling in this market.
With Italy using significant volumes of Pome in biofuels production there may be some uncertainty over the impact of recent proposed changes in export permit allowances by Indonesia. This could support alternative feedstock procurement. Eni said previously it was aiming for 100,000t of alternative feedstock supply from its own initiatives last year. Italy's total castor oil imports were 20,000t in January-November of which 6,500t came from Eni's cultivation in Kenya. None arrived in November. Cottonseed oils from Kenya were lower at 5,000t in January-November, with no arrivals since August. Eni has said it plans alternative feedstock cultivation in several other African, Asia-Pacific countries and Italy, but production volumes remain opaque.
