1 changed files with 21 additions and 0 deletions
@ -0,0 +1,21 @@ |
|||
<br>By Chen Aizhu<br> |
|||
<br>SINGAPORE, Aug 16 (Reuters) - Chinese biodiesel producers are looking for [brand-new outlets](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) in Asia for their exports and checking out producing other biofuels as supply to the European Union, their biggest purchaser, dries up ahead of anti-dumping tariffs, [biofuel](https://stocktwits.com/symbol/MNEL) executives and experts said.<br> |
|||
<br>The EU will impose provisionary anti-dumping tasks of between 12.8% and 36.4% on Chinese biodiesel from Friday, striking over 40 companies including leading manufacturers Zhejiang Jiaao, Henan Junheng and [Longyan](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) Zhuoyue Group in an export company that was worth $2.3 billion in 2015.<br> |
|||
<br>Some [bigger producers](https://forest500.org/rankings/companies/mission-newenergy-limited) are eyeing the marine fuel market in China and Singapore, the world's leading marine fuel hub, as they seek to balance out already falling biodiesel exports to the EU, [biofuel](https://stocktwits.com/symbol/MNEL) executives stated.<br> |
|||
<br>Exports to the bloc have fallen greatly since mid-2023 amidst investigations. Volumes in the very first 6 months of this year plunged 51% from a year earlier to 567,440 lots, Chinese customs data showed.<br> |
|||
<br>June shipments shrank to just over 50,000 tons, the most affordable considering that mid-2019, according to customizeds information.<br> |
|||
<br>At their peak, exports to the EU reached a record 1.8 million heaps in 2023, representing 90% of all Chinese biodiesel exports that year. The Netherlands was the leading importer in 2023, [soaking](https://www.bloomberg.com/profile/company/MNELF:US) in 84% of China's [biodiesel](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) shipments to the EU, followed by and Spain, Chinese customizeds figures showed.<br> |
|||
<br>Chinese manufacturers of biodiesel have delighted in [fat revenues](https://forest500.org/rankings/companies/mission-newenergy-limited) over the last few years, maximizing the EU's green [energy policy](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) that grants aids to business that are using biodiesel as a sustainable transportation fuel such as Repsol, Shell and Neste.<br> |
|||
<br>Much of China's [biodiesel](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) producers are privately-run small plants utilizing ratings of employees processing waste [oil collected](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) from millions of Chinese restaurants. Before the biodiesel export boom, they were making lower-value goods like soaps and processing leather items.<br> |
|||
<br>However, the boom was short-lived. The EU started in August last year examining Indonesian [biodiesel](https://www.pinterest.com.au/missionnewenergy/) that was believed of circumventing responsibilities by going through China and Britain, followed by a 14-month anti-dumping probe into Chinese biodiesel thought to be priced artificially low and undercutting local producers.<br> |
|||
<br>[Anticipating](https://www.bloomberg.com/profile/company/MNELF:US) the tariffs, traders stockpiled on [utilized](https://www.bloomberg.com/profile/company/MNELF:US) cooking oil (UCO), raising costs of the feedstock, while prices of biodiesel sank in view of diminishing need for the Chinese supply.<br> |
|||
<br>"With significant rates of UCO partly supported by strong U.S. and European demand, and free-falling product costs, companies are having a bumpy ride making it through," said Gary Shan, primary marketing [officer](https://www.zoominfo.com/c/mission-newenergy/346542889) of Henan Junheng.<br> |
|||
<br>Prices of hydrotreated veggie oil, or HVO, a main type of [biodiesel](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/), have cut in [half versus](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) last year's average to the existing $1,200 to $1,300 per metric heap and are off a peak of $3,000 in 2022, Shan added.<br> |
|||
<br>With low rates, biodiesel plants have actually cut their operations to an all-time low of under 20% of existing capacity typically in July, down from a peak of 50% last seen in early 2023, according to Chinese consultancies Sublime China Information and JLC.<br> |
|||
<br>Meanwhile, shrinking biodiesel sales are boosting China's UCO exports, which analysts anticipate are set to touch a new high this year. UCO exports skyrocketed by two-thirds year-on-year in the first half of 2024 to 1.41 million heaps, with the United States, Singapore and the Netherlands the leading locations.<br> |
|||
<br>OUTLETS<br> |
|||
<br>While many smaller plants are most likely to shutter production indefinitely, bigger manufacturers like Zhejiang Jiaao, Leoking Enviro Group and Longyan [Zhuoyue](https://www.businessnews.com.au/Company/Mission-NewEnergy) are checking out brand-new outlets including the marine fuel market in the house and in the crucial center of Singapore, which is using more [biodiesel](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) for ship fuel blending, according to the [biofuel](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) executives.<br> |
|||
<br>Among the producers, Longyan Zhuoyue, concurred in January with COSCO Shipping to utilize more biodiesel in marine fuel.<br> |
|||
<br>Companies would likewise speed up planning and building of sustainable aviation fuel (SAF) plants, executives said. China is expected to reveal an SAF required before the end of 2024.<br> |
|||
<br>They have actually likewise been hunting for brand-new biodiesel clients outside the EU bloc, in Australia, Japan, South Korea and Southeast Asia where there are local mandates for the alternative fuel, the authorities added.<br> |
|||
<br>(Reporting by Chen Aizhu |
|||
Write
Preview
Loading…
Cancel
Save
Reference in new issue