The EU imposes provisional anti-dumping duties on Chinese biodiesel

As of August 16, 2024, the EU has begun to impose provisional anti-dumping duties ranging from 12.8% to 36.4% on Chinese biodiesel. This measure has a major impact on China's biodiesel industry and related enterprises.

First, exports are severely blocked. As the world's largest consumer of biodiesel, in 2023, China exported about 1.8 million tons of biodiesel to the EU, accounting for more than 90% of China's total biodiesel exports. However, this imposition of provisional anti-dumping duties has greatly reduced the price competitiveness of Chinese biodiesel in the EU market and led to a sharp drop in export volume. Chinese customs data shows that in the first six months of 2024, China's biodiesel exports to the EU decreased by 51% year-on-year to 567,440 tons.

Second, corporate profits are seriously damaged. The relatively high anti-dumping duties have increased the cost of Chinese biodiesel entering the EU market and greatly compressed the profit margins of enterprises. According to Guotai Junan's calculations, a tariff levy rate of more than 20% will make enterprises with a production profit of less than 50 US dollars/ton have no sustainable profit window for exports to Europe. In 2024, the production profit of biodiesel made from waste oils and fats in China has narrowed from a high of 30 US dollars/ton within the year to around 10 US dollars/ton.

In the face of this situation, the pressure for China's biodiesel industry to adjust its structure has increased. On the one hand, enterprises need to increase research and development investment and improve product quality and technical content to enhance their competitiveness in the international market. On the other hand, actively explore markets outside the EU, such as strengthening cooperation with domestic shipping enterprises and ports, promoting the application of biodiesel in domestic ships, and at the same time developing markets in Asia, Africa, Latin America and other regions to reduce dependence on the EU market.