30 August 2012 19:46 [Source: ICIS news]
LONDON (ICIS)--The European Commission’s announcement that it will investigate the impact of Argentinean and Indonesian biodiesel imports on the EU market is a welcome development, a producer said on Thursday.
The Commission’s announcement on Wednesday in the Official Journal of the EU comes as a result of a complaint lodged by the European Biodiesel Board (EBB) in July.
The complaint alleged that biodiesel was being sold at below cost in the EU by Argentina and Indonesia - a practice known as dumping - which the EBB claimed was having a detrimental effect on the European biodiesel industry.
The Commission will decide whether to impose provisional anti-dumping duties on Argentina and Indonesia within the next nine months, with the investigation to be concluded within 15 months and a decision made whether to apply definitive levies for the next five years.
A German producer said the investigation was needed as many European biodiesel producers were having difficulty surviving.
“I think the product is being sold undervalue in the EU and as a result local biodiesel producers using rapeseed are not competitive,” the producer said.“The capacity is not even 60% this year for rapeseed production and the producers are quite worried.”
A trader said the investigation added some upward pressure to biodiesel premiums, with the market unsure about the affordability and volume of imports in the months to come.
Sources said there is a lot of uncertainty in the market caused by ongoing disputes between Argentina and Spain, and confusion about what biodiesel grades will be included in the EU’s Renewable Energy Directive next year.
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