CITIC Securities: European biofuel prices continue to rise, optimistic about the explosive demand in the second half of the year.

The research report from CITIC Securities pointed out that the price of sustainable aviation fuel in Europe continues to rise, and has now exceeded $2230 per ton. Europe has proposed a high subsidy plan and may strengthen the enforcement of mandatory addition policies, leading to an expected surge in demand. The price of SAF in Europe is currently low, with added supply falling short of expectations, resulting in a clear supply-demand gap. Additionally, strong support from raw material costs suggests greater price elasticity in the future.