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<br>By Chen Aizhu<br> |
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<br>SINGAPORE, Aug 16 (Reuters) - Chinese biodiesel manufacturers are seeking brand-new [outlets](https://www.businessnews.com.au/Company/Mission-NewEnergy) in Asia for their exports and [exploring producing](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) other biofuels as supply to the European Union, their most significant buyer, dries up ahead of anti-dumping tariffs, biofuel executives and analysts said.<br> |
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<br>The EU will enforce provisionary anti-dumping tasks of between 12.8% and 36.4% on Chinese biodiesel from Friday, hitting over 40 companies including leading producers Zhejiang Jiaao, Henan Junheng and Longyan Zhuoyue Group in an export organization that deserved $2.3 billion last year.<br> |
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<br>Some larger producers are considering the marine fuel market in China and Singapore, the [world's leading](https://www.bloomberg.com/profile/company/MNELF:US) marine fuel center, as they look for to offset currently falling biodiesel exports to the EU, [biofuel](https://www.zoominfo.com/c/mission-newenergy/346542889) executives said.<br> |
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<br>Exports to the bloc have actually fallen greatly since mid-2023 in the middle of examinations. Volumes in the very first 6 months of this year [plunged](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) 51% from a year previously to 567,440 loads, Chinese custom-mades information showed.<br> |
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<br>June deliveries diminished to just over 50,000 lots, the lowest since mid-2019, according to customizeds information.<br> |
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<br>At their peak, exports to the EU reached a record 1.8 million lots in 2023, representing 90% of all Chinese biodiesel exports that year. The Netherlands was the top importer in 2023, taking in 84% of [China's biodiesel](https://www.zoominfo.com/c/mission-newenergy/346542889) deliveries to the EU, followed by Belgium and Spain, Chinese customizeds figures showed.<br> |
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<br>[Chinese manufacturers](https://www.google.com/search?kgmid=/m/0cqd_rb) of [biodiesel](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) have actually enjoyed fat revenues over the last few years, making the many of the EU's green energy policy that grants aids to business that are utilizing biodiesel as a sustainable transportation fuel such as Repsol, Shell and Neste.<br> |
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<br>Many of China's [biodiesel](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) manufacturers are privately-run little plants employing scores of employees processing [waste oil](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) gathered from [millions](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) of Chinese dining establishments. Before the [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) 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 in 2015 investigating Indonesian biodiesel that was thought of circumventing 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) thought to be priced artificially low and damaging local producers.<br> |
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<br>Anticipating the tariffs, traders stockpiled on [utilized cooking](https://www.zoominfo.com/c/mission-newenergy/346542889) oil (UCO), raising costs of the feedstock, while prices of [biodiesel](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) sank in view of shrinking need for the Chinese supply.<br> |
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<br>"With hefty prices of UCO partly supported by strong U.S. and European need, and free-falling item prices, companies are having a difficult time surviving," stated Gary Shan, marketing officer of Henan Junheng.<br> |
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<br>Prices of hydrotreated vegetable oil, or HVO, a main kind of biodiesel, have [halved versus](https://www.bloomberg.com/profile/company/MNELF:US) in 2015's average to the current $1,200 to $1,300 per [metric heap](https://www.pinterest.com.au/missionnewenergy/) and are off a peak of $3,000 in 2022, Shan added.<br> |
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<br>With low costs, [biodiesel](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) plants have actually cut their operations to a lowest level of under 20% of existing capacity usually in July, down from 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, diminishing biodiesel sales are increasing China's UCO exports, which experts predict are set to touch a brand-new high this year. UCO exports skyrocketed by two-thirds year-on-year in the very first half of 2024 to 1.41 million loads, with the United States, Singapore and the [Netherlands](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) the leading locations.<br> |
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<br>OUTLETS<br> |
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<br>While many smaller plants are likely to shutter production indefinitely, bigger manufacturers like Zhejiang Jiaao, Leoking Enviro Group and Longyan Zhuoyue are exploring brand-new [outlets consisting](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) of the marine fuel market in your home and in the crucial hub of Singapore, which is using more biodiesel for ship fuel mixing, according to the biofuel executives.<br> |
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<br>One of the producers, Longyan Zhuoyue, concurred in January with COSCO Shipping to utilize more [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) in marine fuel.<br> |
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<br>Companies would also accelerate planning and structure of sustainable aviation fuel (SAF) plants, executives said. China is expected to announce an SAF mandate before the end of 2024.<br> |
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<br>They have actually likewise been hunting for new biodiesel clients outside the EU bloc, in Australia, Japan, South Korea and Southeast Asia where there are regional requireds for the alternative fuel, the authorities added.<br> |
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<br>(Reporting by Chen Aizhu |
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