Chinese biodiesel producers are redirecting their focus to the domestic market following the European Union’s (EU) decision to impose anti-dumping duties, as reported by Biodiesel Digest, citing local media outlet Big Wind.
In August, the EU announced anti-dumping tariffs ranging from 12.8% to 36.4% on biodiesel imports from China. This move is expected to impact nearly 90% of China’s biodiesel exports, which amounted to 1.8 million tonnes last year. The EU has historically relied on China for about 60% of its biodiesel imports.
The new tariffs will affect over 40 companies, including major players like Zhejiang Jiaao, Henan Junheng, and Longyan Zhuoyue Group, in an export market valued at approximately $2.3 billion last year.
In response to these challenges, Chinese authorities and industry leaders convened in Beijing to explore strategies for increasing domestic biodiesel consumption, particularly within the transportation and shipping sectors. Reports indicate that efforts are being made to expand biodiesel use in vehicles and marine applications, with Shanghai leading the way by establishing a comprehensive biodiesel supply chain.
Despite these initiatives, other regions in China are still struggling with biodiesel adoption. While the government has launched pilot projects in 19 cities, industry experts stress the need for further support and infrastructure improvements to enhance domestic usage.
Meanwhile, Chinese biodiesel producers are actively seeking new export markets in Asia as they adapt to the EU’s anti-dumping tariffs. Some larger producers are eyeing the marine fuel market in Singapore, the world’s largest hub for marine fuel, in an attempt to mitigate the decline in biodiesel exports to the EU.
According to Chinese customs data, exports to the EU have significantly decreased amid investigations into allegedly fraudulent biofuel imports. In the first half of this year, shipments dropped by 51% compared to the previous year, totaling 567,440 tonnes. In June alone, exports fell to just over 50,000 tonnes, the lowest level since mid-2019.
At their peak, Chinese biodiesel exports to the EU reached a record 1.8 million tonnes in 2023, accounting for 90% of all biodiesel exports from China that year.
