European Commission proposes duties to counteract damage from China’s unfair practices

  • European Commission proposes tariffs on Chinese biofuels due to unfair pricing practices
  • Tariffs range from 12.8% to 36.4% to protect domestic producers
  • Biofuel prices have dropped by nearly 40% in the first seven months of 2023 compared to 2022
  • Chinese exports to EU increased to 1 million metric tons in 2023 from 550,000 metric tons in 2022
  • Oil companies scale back biofuels ambitions due to market conditions
  • EU investigation into Indonesian biodiesel circumvention dropped after EBB complaint withdrawal

The European Union has proposed provisional tariffs on biofuels from China after finding that Chinese companies were dumping the commodity into European markets at unfair prices. The move follows a significant slump in biofuel prices, with the European benchmark price for used cooking oil-based biodiesel averaging $1,300 a metric ton for the first seven months of this year, down by nearly 40% from the same period in 2022. Chinese exports to the EU increased to around 1 million metric tons in 2023, up from 550,000 metric tons the previous year. The tariffs, proposed by the European Commission, will likely come into force in August, although the EU’s anti-dumping probe will continue until February 2025 when definitive measures can be imposed. This follows a complaint raised by the European Biodiesel Board about China’s unfair trading practices.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the European Union’s proposed tariffs on Chinese biofuels due to unfair pricing practices, includes relevant data from Argus Media and Global Trade Tracker, and discusses the impact on domestic producers. It also mentions related trade disputes between the EU and China. However, it lacks personal opinions or sensationalism.
Noise Level: 3
Noise Justification: The article provides relevant information about the European Union’s proposed tariffs on Chinese biofuels due to unfair pricing practices and their impact on domestic producers. It also mentions the background of the investigation and its consequences on companies like BP and Shell. However, it could benefit from more in-depth analysis or context on the broader implications of this trade dispute between the EU and China.
Public Companies: BP (BP), Shell (SHEL)
Key People: Sophie Barthel (head of European biofuel pricing at Argus), Enes Morina (writer)

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Financial Relevance: Yes
Financial Markets Impacted: European biofuels market and European oil companies (such as BP and Shell)
Financial Rating Justification: The article discusses the proposed tariffs on Chinese biofuels by the European Union, which can impact the prices and operations of European oil companies involved in the biofuels industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text. The article discusses the European Union proposing provisional tariffs on biofuels from China due to unfair pricing practices, which has led to a slump in prices and affected some companies’ plans for biofuel projects.

Reported publicly: www.wsj.com