The Biodiesel prices in Germany witnessed a sharp upturn during the week of 2^nd August. The prices showed a continued bullish trend extending to the last week of July. The surge in price was influenced by various factors. Despite the decline in crude oil prices, the prices of Biodiesel observed an upward trend in the market. The incline in the prices was mostly due to the decision taken by European Union to impose provisional duties on the import of Biodiesel from China pursuant to the European Union’s anti- dumping regulations. The decision took place after the European Union found out that Chinese Biodiesel have been sold in the EU markets at unfairly low prices which has drastically affected the domestic production.

According to a summary of the proposed duties published on July 19^th by the European Commission, the duties will range from 12.8 to 36.4 percent. The European Biodiesel Board (EBB) logged the complaint stating the devastating effects of the flood of Chinese Biodiesel on EU production. Three companies — EcoCeres Group, Jiaao Group and Zhuoyue Group — and their subsidiaries were listed by name in the summary, with each subject to duties of 12.8 percent, 36.4 percent, and 25.4 percent respectively. European businesses continued to suffer for far too long under the pressure of unfairly prices Chinese Biodiesel imports in the domestic market. The provisional duties when imposed will help the domestic businesses and production which remained under pressure due to low prices of Chinese imports. The provisional measures are expected to take effect no later than 16^th August 2024. The investigation is ongoing and final measures are to be published no later than Feb 14^th, 2025.

The complaint was lodged by the European Biodiesel Board (EBB) in the latter half of 2023 with allegations of unfair trading practices by China. Before the announcement of provisional duties, the dumping practices of Biodiesel by China was having a significant effect on the European market. German workers were furlodged due to oversupply in the market which was caused by influx in Chinese Biodiesel. According to EBB, Shell had paused the construction of a biodiesel plant in Netherlands given the current market conditions. BP was pausing a project in Germany and Argent refinery has closed a biorefinery.

Looking ahead, the price of Biodiesel in the European market, is expected to increase amid the new provisional duties announcement which could give a positive push to the local European production for Biodiesel.