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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 in Asia for their exports and [checking](https://www.businessnews.com.au/Company/Mission-NewEnergy) out producing other biofuels as supply to the European Union, their most significant purchaser, dries up ahead of anti-dumping tariffs, [biofuel](https://www.zoominfo.com/c/mission-newenergy/346542889) executives and analysts stated.<br> |
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<br>The EU will enforce provisional anti-dumping tasks of between 12.8% and 36.4% on Chinese biodiesel from Friday, striking over 40 business including leading manufacturers [Zhejiang](https://forest500.org/rankings/companies/mission-newenergy-limited) Jiaao, Henan Junheng and Longyan Zhuoyue Group in an [export company](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) that deserved $2.3 billion in 2015.<br> |
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<br>Some bigger producers are eyeing the marine fuel market in China and Singapore, the world's top [marine fuel](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) hub, as they seek to offset currently falling biodiesel exports to the EU, [biofuel](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) executives said.<br> |
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<br>[Exports](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) to the bloc have fallen sharply considering that mid-2023 amid examinations. Volumes in the first six months of this year plunged 51% from a year earlier to 567,440 loads, Chinese custom-mades information revealed.<br> |
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<br>June shipments diminished to simply over 50,000 loads, the most affordable because mid-2019, according to [customizeds data](https://www.crunchbase.com/organization/mission-newenergy).<br> |
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<br>At their peak, exports to the EU reached a record 1.8 million loads in 2023, representing 90% of all Chinese [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) [exports](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) 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.<br> |
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<br>Chinese manufacturers of biodiesel have actually delighted in fat profits over the last few years, maximizing the EU's green energy policy that to business that are utilizing biodiesel as a [sustainable transport](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) fuel such as Repsol, Shell and Neste.<br> |
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<br>A number of China's biodiesel producers are privately-run little plants utilizing ratings of workers processing waste oil gathered from millions of Chinese restaurants. Before the biodiesel export boom, they were making [lower-value](https://www.bloomberg.com/profile/company/MNELF:US) items like soaps and processing leather products.<br> |
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<br>However, the boom was short-term. The EU began in August in 2015 examining Indonesian [biodiesel](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) that was suspected of preventing duties by going through China and Britain, followed by a 14-month anti-dumping probe into Chinese biodiesel believed to be priced artificially low and undercutting local manufacturers.<br> |
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<br>[Anticipating](https://www.businessnews.com.au/Company/Mission-NewEnergy) the tariffs, traders stocked up on used cooking oil (UCO), raising costs of the feedstock, while prices of biodiesel sank in view of diminishing demand for the Chinese supply.<br> |
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<br>"With significant prices of UCO partially supported by strong U.S. and European demand, and free-falling product prices, business are having a bumpy ride surviving," stated Gary Shan, primary marketing officer of Henan Junheng.<br> |
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<br>Prices of hydrotreated vegetable oil, or HVO, a main kind of [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053), have halved versus in 2015's average to the current $1,200 to $1,300 per metric lot and are off a peak of $3,000 in 2022, Shan included.<br> |
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<br>With low rates, [biodiesel](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) plants have cut their operations to a lowest level of under 20% of existing capacity usually 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, [diminishing biodiesel](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) sales are enhancing China's UCO exports, which experts predict are set to touch a new high this year. UCO exports soared 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 the leading locations.<br> |
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<br>OUTLETS<br> |
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<br>While many smaller sized plants are most likely to shutter production indefinitely, larger manufacturers like Zhejiang Jiaao, Leoking Enviro Group and Longyan Zhuoyue are checking out brand-new outlets including the marine fuel market at home and in the important hub of Singapore, which is utilizing more biodiesel for ship fuel blending, according to the [biofuel executives](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html).<br> |
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<br>One of the producers, Longyan Zhuoyue, concurred in January with COSCO Shipping to use more [biodiesel](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) in marine fuel.<br> |
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<br>Companies would also accelerate planning and structure of sustainable air travel fuel (SAF) plants, executives said. China is expected to announce an [SAF required](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) before the end of 2024.<br> |
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<br>They have actually also been scouting for new biodiesel clients outside the EU bloc, in Australia, Japan, South Korea and Southeast Asia where there are local requireds for the [alternative](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) fuel, the officials added.<br> |
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<br>(Reporting by Chen Aizhu |
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