Malaysia to gain from US’ new duties on biodiesel imports

11/04/2018 12:00 - 59 total view

KUCHING: Malaysian biodiesel producers will likely be beneficiaries on the US’ new antidumping duties on biodiesel imports from Indonesia.

This was projected by AmInvestment Bank Bhd (AmInvestment Bank) in a plantation sector report which also highlighted that Malaysia exported 235,259 tonnes of biodiesel in 2017.

“We reckon that Malaysian biodiesel producers would be beneficiaries of the antidumping duties imposed by the US on Indonesia’s biodiesel products,” AmInvestment Bank said.

The research firm noted that companies with biodiesel operations in Malaysia are Sime Darby Plantation Bhd, Felda Global Ventures Holdings Bhd and Genting Plantations Bhd.

In a news release on April 3, the United States International Trade Commission (USITC) had determined that a US industry is materially injured by reason of imports of biodiesel from Argentina and Indonesia that the US Department of Commerce (Commerce) has determined are sold in the US at less than fair value.

“As a result of the USITC’s affirmative determinations, Commerce will issue antidumping duty orders on imports of this product from Argentina and Indonesia,” the news release read.

AmInvestment Bank highlighted that the US antidumping duties will hit Indonesian companies like Wilmar International and Musim Mas.

AmInvestment Bank noted that Commerce calculated that imports from Argentina were sold in the US at dumping margins of up to 86.41 per cent while imports from Indonesia were sold at dumping margins of up to 276.65 per cent.

The research firm further noted that due to the Trade Commission’s findings that the imports are hurting the US biodiesel industry, the US will impose duties in line with those rates.

“We believe that this is negative for the Indonesian biodiesel producers,” AmInvestment Bank said.

“According to Oil World, Indonesia produced about 2.95 million tonnes of biodiesel in 2017.

“Out of these, roughly 74 per cent were used domestically while the balance 26 per cent were exported.”

That said, AmInvestment Bank highlighted that the silver lining is that Indonesian companies can export their biodiesel products to the European Union (EU) as the EU has abolished the anti-dumping duties on Indonesia and Argentina’s biodiesel products.
Source: ​http://www.theborneopost.com