From 3a9258586ab8b525dd4b3bf1cc29bff4b7c9c9a2 Mon Sep 17 00:00:00 2001 From: Belle Jeffcott Date: Sun, 12 Jan 2025 07:28:42 +0800 Subject: [PATCH] Add 'China's Biodiesel Producers Seek Brand-new Outlets As Hefty EU Tariffs Bite' --- ...nd-new-Outlets-As-Hefty-EU-Tariffs-Bite.md | 21 +++++++++++++++++++ 1 file changed, 21 insertions(+) create mode 100644 China%27s-Biodiesel-Producers-Seek-Brand-new-Outlets-As-Hefty-EU-Tariffs-Bite.md diff --git a/China%27s-Biodiesel-Producers-Seek-Brand-new-Outlets-As-Hefty-EU-Tariffs-Bite.md b/China%27s-Biodiesel-Producers-Seek-Brand-new-Outlets-As-Hefty-EU-Tariffs-Bite.md new file mode 100644 index 0000000..fb9fb3b --- /dev/null +++ b/China%27s-Biodiesel-Producers-Seek-Brand-new-Outlets-As-Hefty-EU-Tariffs-Bite.md @@ -0,0 +1,21 @@ +
By Chen Aizhu
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SINGAPORE, Aug 16 (Reuters) - Chinese biodiesel manufacturers are looking for new [outlets](https://pitchbook.com/profiles/company/51278-86) in Asia for their exports and checking out producing other biofuels as supply to the European Union, their most significant purchaser, dries up ahead of anti-dumping tariffs, [biofuel](https://stocktwits.com/symbol/MNEL) [executives](https://www.zoominfo.com/c/mission-newenergy/346542889) and experts said.
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The EU will impose provisionary anti-dumping duties of in between 12.8% and 36.4% on Chinese biodiesel from Friday, striking over 40 companies consisting of leading [producers Zhejiang](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) Jiaao, Henan Junheng and Longyan Zhuoyue Group in an export company that [deserved](https://www.pinterest.com.au/missionnewenergy/) $2.3 billion last year.
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Some larger manufacturers are considering the marine fuel market in China and Singapore, the world's leading marine fuel hub, as they seek to offset already falling biodiesel exports to the EU, [biofuel](https://stocktwits.com/symbol/MNEL) executives stated.
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Exports to the bloc have actually fallen sharply considering that mid-2023 amidst examinations. Volumes in the first six months of this year plunged 51% from a year previously to 567,440 loads, Chinese customs information showed.
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June deliveries shrank to just over 50,000 tons, the most affordable since mid-2019, according to .
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At their peak, exports to the EU reached a record 1.8 million heaps in 2023, representing 90% of all Chinese biodiesel [exports](https://www.bloomberg.com/profile/company/MNELF:US) that year. The Netherlands was the leading importer in 2023, taking in 84% of China's biodiesel deliveries to the EU, followed by Belgium and Spain, Chinese custom-mades figures showed.
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Chinese manufacturers of [biodiesel](https://www.crunchbase.com/organization/mission-newenergy) have taken pleasure in fat revenues in the last few years, making the many of the EU's [green energy](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) policy that gives aids to business that are utilizing biodiesel as a [sustainable transport](https://www.google.com/search?kgmid=/m/0cqd_rb) fuel such as Repsol, Shell and Neste.
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A lot of China's biodiesel manufacturers are privately-run little plants using scores of employees processing waste oil gathered from countless Chinese restaurants. Before the biodiesel export boom, they were making [lower-value](https://www.abnnewswire.net/companies/en/31347/%E0%B8%9A%E0%B8%A3%E0%B8%B4%E0%B8%A9%E0%B8%B1%E0%B8%97-Mission-NewEnergy-%E0%B8%88%E0%B8%B3%E0%B8%81%E0%B8%B1%E0%B8%94.html/4) goods like soaps and processing leather products.
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However, the boom was short-lived. The EU started in August in 2015 examining Indonesian biodiesel that was presumed of preventing responsibilities by going through China and Britain, followed by a 14-month anti-dumping probe into Chinese [biodiesel](https://www.abnnewswire.net/companies/en/31347/%E0%B8%9A%E0%B8%A3%E0%B8%B4%E0%B8%A9%E0%B8%B1%E0%B8%97-Mission-NewEnergy-%E0%B8%88%E0%B8%B3%E0%B8%81%E0%B8%B1%E0%B8%94.html/4) believed to be priced artificially low and undercutting local producers.
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Anticipating the tariffs, traders stocked up on utilized cooking oil (UCO), lifting prices of the feedstock, while prices of biodiesel sank in view of [shrinking](https://pitchbook.com/profiles/company/51278-86) demand for the [Chinese supply](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/).
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"With hefty rates of UCO partially supported by strong U.S. and European demand, and free-falling product rates, companies are having a tough time surviving," said Gary Shan, chief marketing officer of Henan Junheng.
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Prices of hydrotreated vegetable oil, or HVO, a primary type of [biodiesel](https://www.google.com/search?kgmid=/m/0cqd_rb), have cut in half versus in 2015's average to the [current](https://forest500.org/rankings/companies/mission-newenergy-limited) $1,200 to $1,300 per metric ton and are off a peak of $3,000 in 2022, Shan added.
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With low prices, biodiesel plants have actually cut their operations to an all-time low of under 20% of existing capability on average in July, down from a peak of 50% last seen in early 2023, according to Chinese consultancies Sublime China Information and JLC.
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Meanwhile, shrinking biodiesel sales are boosting China's UCO exports, which experts forecast are set to touch a new high this year. UCO exports skyrocketed by two-thirds year-on-year in the very first half of 2024 to 1.41 million lots, with the United States, Singapore and the Netherlands the top destinations.
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OUTLETS
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While numerous smaller plants are likely to shutter production indefinitely, larger producers like Zhejiang Jiaao, Leoking Enviro Group and Longyan Zhuoyue are checking out [brand-new outlets](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) including the [marine fuel](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) market in the house and in the important hub of Singapore, which is using more biodiesel for ship fuel blending, according to the [biofuel](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) executives.
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One of the producers, Longyan Zhuoyue, agreed in January with COSCO Shipping to use more biodiesel in marine fuel.
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Companies would also accelerate planning and building of sustainable aviation fuel (SAF) plants, executives said. China is anticipated to reveal an SAF required before the end of 2024.
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They have actually likewise been hunting for brand-new biodiesel customers outside the EU bloc, in Australia, Japan, South Korea and Southeast Asia where there are [regional requireds](https://www.crunchbase.com/organization/mission-newenergy) for the [alternative](https://www.bloomberg.com/profile/company/MNELF:US) fuel, the authorities added.
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(Reporting by Chen Aizhu \ No newline at end of file