Producers, blenders and fuel suppliers are reporting a slowdown in trading this week. A Fastmarkets survey of participants showed that overall sentiment has the market slowing ahead of the transition from the Blenders Tax Credit (BTC) to the 45z Clean Fuel Production Credit (CFPC).

“Supply is very tight on biodiesel right now,” a producer said.

This was echoed by a truck stop fuel provider who noted all of their 2024 volumes have already been filled.

A fuel blender said spot market trading was “somewhat active, but not what I consider normal activity. In fact, I would say it is way below normal for this time of the year.”

The transition from BTC to CFPC is not expected to be smooth since there remains a lack of guidance on the CFPC credit calculation.

Several producers and blenders have told Fastmarkets they are not trading past the end of the year.

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