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<br>By Chen Aizhu<br> |
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<br>SINGAPORE, Aug 16 (Reuters) - Chinese biodiesel manufacturers are looking for brand-new [outlets](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) in Asia for their exports and exploring producing other biofuels as supply to the European Union, their most significant purchaser, dries up ahead of anti-dumping tariffs, [biofuel](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) [executives](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) and experts said.<br> |
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<br>The EU will enforce provisionary [anti-dumping](https://www.bloomberg.com/profile/company/MNELF:US) tasks of between 12.8% and 36.4% on [Chinese biodiesel](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) from Friday, hitting over 40 business consisting of leading manufacturers Zhejiang Jiaao, Henan Junheng and Longyan Zhuoyue Group in an export [organization](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) that deserved $2.3 billion last year.<br> |
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<br>Some larger manufacturers are considering the marine fuel market in China and Singapore, the world's leading marine fuel hub, as they look for to offset already falling biodiesel exports to the EU, [biofuel](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) executives said.<br> |
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<br>Exports to the bloc have fallen greatly since mid-2023 amid examinations. Volumes in the first six months of this year plunged 51% from a year previously to 567,440 loads, Chinese customizeds information revealed.<br> |
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<br>June deliveries diminished to simply over 50,000 tons, the most affordable because mid-2019, according to custom-mades information.<br> |
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<br>At their peak, exports to the EU [reached](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) a record 1.8 million loads in 2023, representing 90% of all Chinese biodiesel [exports](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) that year. The Netherlands was the top importer in 2023, taking in 84% of China's biodiesel deliveries to the EU, followed by Belgium and Spain, Chinese customs figures showed.<br> |
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<br>Chinese producers of biodiesel have actually taken pleasure in fat revenues over the last few years, taking advantage of the EU's green energy policy that gives aids to companies that are utilizing biodiesel as a sustainable transport fuel such as Repsol, Shell and Neste.<br> |
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<br>Many of China's biodiesel manufacturers are privately-run little plants using scores of employees processing waste oil collected from millions of Chinese dining establishments. Before the biodiesel export boom, they were making lower-value items like soaps and processing leather products.<br> |
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<br>However, the boom was short-lived. The EU started in August last year examining Indonesian [biodiesel](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) that was thought of circumventing duties by going through China and Britain, followed by a 14[-month anti-dumping](https://www.pinterest.com.au/missionnewenergy/) probe into believed to be priced synthetically low and damaging local producers.<br> |
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<br>Anticipating the tariffs, traders stockpiled on utilized cooking oil (UCO), lifting costs of the feedstock, while prices of biodiesel sank in view of diminishing need for the Chinese supply.<br> |
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<br>"With significant prices of UCO partly supported by strong U.S. and European need, and free-falling item prices, companies are having a hard time enduring," said Gary Shan, primary marketing officer of Henan Junheng.<br> |
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<br>Prices of hydrotreated veggie oil, or HVO, a main type of biodiesel, have actually cut in half versus last year's average to the [existing](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) $1,200 to $1,300 per [metric load](https://www.businessnews.com.au/Company/Mission-NewEnergy) and are off a peak of $3,000 in 2022, Shan added.<br> |
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<br>With low costs, [biodiesel plants](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) have actually cut their operations to a lowest level of under 20% of existing capability on [average](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) in July, below a peak of 50% last seen in early 2023, according to Chinese consultancies Sublime China Information and JLC.<br> |
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<br>Meanwhile, shrinking biodiesel sales are boosting China's UCO exports, which experts forecast are set to touch a new high this year. [UCO exports](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) 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 destinations.<br> |
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<br>OUTLETS<br> |
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<br>While numerous smaller plants are most likely to shutter production indefinitely, bigger manufacturers like Zhejiang Jiaao, Leoking Enviro Group and Longyan Zhuoyue are exploring new outlets consisting of the marine fuel market in the house and in the essential center of Singapore, which is using more [biodiesel](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) for ship fuel mixing, according to the [biofuel](https://www.crunchbase.com/organization/mission-newenergy) executives.<br> |
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<br>Among the manufacturers, Longyan Zhuoyue, concurred in January with COSCO Shipping to utilize more [biodiesel](https://forest500.org/rankings/companies/mission-newenergy-limited) in marine fuel.<br> |
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<br>Companies would also [accelerate planning](https://forest500.org/rankings/companies/mission-newenergy-limited) and structure of sustainable aviation fuel (SAF) plants, executives stated. China is expected to announce an SAF mandate before completion of 2024.<br> |
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<br>They have also been searching for new biodiesel customers outside the EU bloc, in Australia, Japan, South Korea and Southeast Asia where there are local mandates for the [alternative](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) fuel, the officials included.<br> |
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<br>(Reporting by Chen Aizhu |
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