Chinese biodiesel producers are grappling with new obstacles as the European Union prepares to impose provisional anti-dumping duties on their exports. Starting Friday, the EU will apply tariffs ranging from 12.8% to 36.4% on biodiesel imports from China. This move affects over 40 Chinese companies, including major players like Zhejiang Jiaao, Henan Junheng, and Longyan Zhuoyue Group. Last year, the biodiesel export market was valued at $2.3 billion, with the EU being the largest buyer.
In response to the impending tariffs, which have already led to a significant drop in exports, Chinese producers are seeking alternative markets in Asia. The EU’s decision comes after a series of investigations into whether Indonesian biodiesel was being rerouted through China and Britain to evade duties, followed by a 14-month anti-dumping probe into Chinese biodiesel.
Exports to the EU plummeted by 51% in the first half of 2024, compared to the same period last year, with volumes falling to 567,440 tons. This is a stark decrease from the record 1.8 million tons exported in 2023, when the EU absorbed 90% of China’s biodiesel shipments. The Netherlands was the leading importer, receiving 84% of these exports, followed by Belgium and Spain.
As European demand wanes, some Chinese producers are turning their focus to the marine fuel market in China and Singapore, hoping to offset the losses from the EU market. Many of these biodiesel producers are small, private operations that once processed waste oil into lower-value goods but have shifted to biodiesel due to lucrative EU subsidies for green energy.
The industry’s future hinges on adapting to the new market conditions and exploring opportunities beyond Europe.
