Biodiesel News: At the beginning of this year, the Securities Daily reported that “Yueda invested in a new energy projectâ€, and the loss-making assets purchased have not been profitable for three years. Since the company’s acquisition of Yueda Carter in 2014, the new energy company It has not been profitable yet. Regarding Yueda Carter’s continued losses, Yueda Investment explained: “The biodiesel industry is still in a downturn due to cost and channel constraints.â€
The cost and channel issues mentioned above. According to the biodiesel network, since the emergence of the biodiesel industry, these two problems have not been solved very well. At most, at 13-14 years, the international oil price is still acceptable. The spread of biodiesel was in a good state. At that time, biodiesel companies were generally in a profitable state; but the good times did not last long, and the price of crude oil dropped sharply, and it had dropped to 54 US dollars by the end of 2014; we know that biodiesel is a product of high oil prices, as an alternative. When the product appeared, when the price of crude oil was less than 70 US dollars, biodiesel was not suitable.
Why is it that the use of biodiesel has lost its meaning when crude oil is below $70? First of all, we have to know what biodiesel is. It is diesel. It needs to be blended into petrochemical diesel to supply to our vehicles. The low price of crude oil directly leads to the low price of petrochemical diesel. The low-cost petrochemical diesel does not need to use organisms. Diesel is reconciled; because the cost of raw materials is too high, the price of biodiesel produced is high, and the price difference with petrochemical diesel is limited. Even with other alternatives (non-standard diesel, refining), there is no advantage. Which oil to choose, it is clear that biodiesel will be excluded.
Then there is the channel. We have not seen any formal channels, such as entering the petrochemical gas station. The biodiesel network believes that this channel is estimated to be difficult to get through at one and a half times; unless, like foreign countries, the policy is forced to blend. What we are seeing now is that in the two or three years of low oil prices, many biodiesel companies have been transformed or are in a state of downtime; only a few factories are starting up, but most of the biodiesel they do is taking domestic chemical channels or exporting. The EU, according to the biodiesel network, exports have become mainstream.
For the biodiesel industry, whether it is cost or channel, it seriously restricts the survival of China's biodiesel enterprises and the development of the industry. Only by solving these two problems, the biodiesel industry is likely to have a new improvement, or the international oil price has rebounded sharply. However, for the moment, crude oil is not expected.
The cost and channel issues mentioned above. According to the biodiesel network, since the emergence of the biodiesel industry, these two problems have not been solved very well. At most, at 13-14 years, the international oil price is still acceptable. The spread of biodiesel was in a good state. At that time, biodiesel companies were generally in a profitable state; but the good times did not last long, and the price of crude oil dropped sharply, and it had dropped to 54 US dollars by the end of 2014; we know that biodiesel is a product of high oil prices, as an alternative. When the product appeared, when the price of crude oil was less than 70 US dollars, biodiesel was not suitable.
Why is it that the use of biodiesel has lost its meaning when crude oil is below $70? First of all, we have to know what biodiesel is. It is diesel. It needs to be blended into petrochemical diesel to supply to our vehicles. The low price of crude oil directly leads to the low price of petrochemical diesel. The low-cost petrochemical diesel does not need to use organisms. Diesel is reconciled; because the cost of raw materials is too high, the price of biodiesel produced is high, and the price difference with petrochemical diesel is limited. Even with other alternatives (non-standard diesel, refining), there is no advantage. Which oil to choose, it is clear that biodiesel will be excluded.
Then there is the channel. We have not seen any formal channels, such as entering the petrochemical gas station. The biodiesel network believes that this channel is estimated to be difficult to get through at one and a half times; unless, like foreign countries, the policy is forced to blend. What we are seeing now is that in the two or three years of low oil prices, many biodiesel companies have been transformed or are in a state of downtime; only a few factories are starting up, but most of the biodiesel they do is taking domestic chemical channels or exporting. The EU, according to the biodiesel network, exports have become mainstream.
For the biodiesel industry, whether it is cost or channel, it seriously restricts the survival of China's biodiesel enterprises and the development of the industry. Only by solving these two problems, the biodiesel industry is likely to have a new improvement, or the international oil price has rebounded sharply. However, for the moment, crude oil is not expected.
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