Group 1 - The U.S. President Trump announced new tariff rates for eight countries, including Brazil, with rates ranging from 20% to 50%, effective August 1, 2025 [1] - Brazil's Vice President criticized the U.S. for raising tariffs, stating that 80% of U.S. exports to Brazil are already duty-free, indicating a trade surplus for the U.S. [1] - Brazil's economy is the largest in Latin America, with a GDP ranking among the top ten globally, and it has developed industries in petrochemicals, mining, steel, and automotive sectors [2] Group 2 - The direct trigger for the U.S. tariffs is a discrepancy in trade statistics, with the U.S. claiming a trade deficit while Brazil argues that service trade is included in the U.S. statistics [4] - In 2024, Brazil imported $42.41 billion from the U.S. and exported $40.33 billion to the U.S., highlighting the close trade relationship [4] - Political motivations are also at play, as Trump has publicly questioned the Brazilian government's investigation into former President Bolsonaro, suggesting that tariffs could be used as leverage [4]

Core Viewpoint - The company, COFCO Technology, is actively engaging in futures hedging to mitigate market risks and has established a leading position in the biofuel sector, particularly in the production of D-alloheptulose sugar through a unique enzymatic process approved by health authorities [2][3]. Group 1: Stock Performance - As of July 7, 2025, COFCO Technology's stock closed at 5.85 yuan, down 1.35%, with a turnover rate of 1.33%, a trading volume of 246,400 shares, and a transaction value of 145 million yuan [1]. Group 2: Investor Inquiries and Company Responses - The company plans to continue its futures hedging activities in 2025 to control market risks related to raw materials and product prices [2]. - Alcohol and its by-products account for approximately 45% of the company's total sales revenue, with annual sales of around 1.3 million tons, including about 1 million tons of fuel ethanol, indicating a leading market share in the industry [2]. - The company has received approval from the National Health Commission for its enzymatic production of D-alloheptulose sugar, establishing a unique compliance position and market advantage in China [2].

Group 1 - Brazil has adjusted its biofuel policy, increasing the mandatory blending ratios for ethanol and biodiesel, which is expected to impact the market significantly [1] - The new blending ratio for ethanol has been raised to 27%, while biodiesel's blending ratio has been increased to 15% [1] - This policy change aims to promote renewable energy sources and reduce greenhouse gas emissions, aligning with global sustainability goals [1] Group 2 - The market response to these changes may lead to increased demand for biofuels, potentially affecting prices and supply chains [1] - Companies involved in biofuel production may see growth opportunities as a result of the higher blending mandates [1] - The adjustment in policy reflects Brazil's commitment to enhancing its renewable energy sector and could influence other countries' biofuel strategies [1]

Group 1 - The International Energy Agency (IEA) reports that global investment in low-emission fuels is experiencing historic growth, yet biofuels still represent a small fraction of overall energy investment, projected to reach $16 billion by 2025, accounting for about 3% of total global energy investment this year [1] - The U.S. and Brazil dominate the liquid biofuel market, with the U.S. being a growth center for Hydrotreated Vegetable Oil (HVO) and Sustainable Aviation Fuel (SAF), expected to contribute half of the projected 40% increase in global HVO and SAF production to 800,000 barrels per day by 2025 [1] - Brazil's biofuel investment is expected to grow to approximately $3 billion by 2025, driven by the recently passed Future Fuels Law, which could release an average of $4 billion in investments annually over the next decade [1] Group 2 - Europe leads in overall clean energy spending but focuses more on biogas rather than liquid biofuels, accounting for 60% of global biogas investment while lagging behind the U.S., China, and Brazil in biodiesel and ethanol investments [2] - European refineries are transitioning to produce biofuels or integrating carbon capture and storage technologies to meet stricter emission targets, as several refineries are closing due to declining oil demand [2] - The shipping sector's biofuel prospects are boosted by new carbon reduction rules set by the International Maritime Organization (IMO) in 2025, which are expected to increase demand for low-emission fuels, although large-scale transformation projects face complexities such as rising material costs and labor shortages [2]

巴西政府：巴西国家能源政策委员会将于周三会议讨论增加乙醇和生物柴油的配额。 ...

Core Viewpoint - The price of European Sustainable Aviation Fuel (SAF) has been continuously rising, currently exceeding $2,230 per ton, driven by high subsidy plans and potential strengthening of mandatory blending policies [1] Group 1: Price Trends - European SAF prices were low in the first half of 2025, but the supply increase did not meet expectations, leading to a significant supply-demand gap [1] - The strong support from raw material costs indicates a high price elasticity in the future [1] Group 2: Demand and Supply Dynamics - There is an anticipated explosion in demand due to the implementation of high subsidy plans and stricter blending policies [1]

Core Viewpoint - The company has successfully developed the HEFA technology route for producing sustainable aviation fuel (SAF) and has become the first private enterprise in China to obtain airworthiness certification for its SAF product, which is set to contribute significantly to carbon reduction and food safety [1][2]. Group 1: Technology Development - The SAF is produced from waste oils such as gutter oil, reducing carbon emissions by 85% compared to traditional fossil fuels, while also addressing food safety issues [2]. - The company has spent five years overcoming technical challenges related to low product yield and short production cycles, successfully mastering the HEFA technology route [2]. - The HEFA technology involves hydrogenation and deoxygenation processes to convert waste oils into sustainable aviation fuel with performance comparable to existing aviation kerosene [2]. Group 2: Technical Innovations - The company has developed high-acid-resistant and water-resistant catalyst carriers to process high-acid waste oils, ensuring stable long-term operation [3]. - High-performance isomerization agents have been created to precisely control reaction spaces and branched positions, significantly increasing the yield of sustainable aviation fuel [3]. - Advanced fluidized bed reactors and new molecular sieve isomerization catalysts have been implemented, achieving a total yield of over 72% for sustainable aviation fuel and lowering the freezing point to below -42°C [3]. Group 3: Expansion Plans - The company recognizes the need for increased production capacity and reduced costs to meet the actual demand for SAF in light of the "dual carbon" goals [4]. - A project to process 1 million tons of waste oils into sustainable aviation fuel has been approved by the government, with construction starting in October 2024 and expected completion by the end of 2025 [4]. - Upon completion, the annual processing capacity for SAF will increase from 200,000 tons to 1 million tons, with an expected output of 700,000 to 800,000 tons per year [4].

Core Viewpoint - The Israel-Palestine conflict has led to increased energy costs, prompting a surge in the prices of biofuels such as palm oil and soybean oil, driven by rising demand for alternative energy sources [1] Group 1: Price Movements - Soybean oil prices have risen by 11% to over 55 cents per pound since last Thursday, marking the highest level since October 2023 [1] - Palm oil prices, which had been declining due to oversupply, have increased by over 6% this week to nearly 4100 ringgit per ton [1] Group 2: Market Drivers - The primary reason for the rise in biofuel prices is the increase in energy and crude oil prices due to the ongoing conflict [1] - Rising energy prices have elevated palm oil production costs and boosted potential demand for biofuels as an alternative energy source [1] Group 3: Supply and Demand Dynamics - As of the end of May, U.S. soybean oil inventories have dropped to 1.37 billion pounds, a 20% decrease compared to the same period last year, representing the lowest level for May since 2004 [1] - Domestic demand has increased due to policy support, alongside rising crude oil prices and tightening supply, which have further bolstered the market [1]

美国参议院财政委员会共和党人提出的税收法案将把清洁燃料税收抵免（45Z）延长至2031年，并将外 国生物燃料原料的抵免额度降低20%。 ...

Report Industry Investment Rating No relevant content provided. Core View of the Report - The US EPA issued a proposed rule for the RFS from 2026 - 2027, which is unexpectedly bullish. The total demand for raw materials is expected to grow in the next two years [20]. - There is a price premium for North American domestic raw materials over overseas raw materials in producing renewable diesel. The premium is dynamic and may widen if the RIN price rises. The bottom of the US soybean oil price is relatively stable, but there is a risk of a 10% - 20% upward fluctuation in the long - term. The demand from small refineries is uncertain [20]. - Due to the increasing biomass diesel obligation and differential subsidies for domestic and foreign raw materials, North American soybean oil and rapeseed oil will be used for biomass diesel production, while overseas raw materials will be used in the food and oleochemical markets. The price of raw materials for biomass diesel is more elastic [21]. - The US is expected to increase domestic soybean crushing and reduce soybean exports without increasing the soybean planting area. This may affect China's soybean imports, and the CBOT soybean price will be supported [22]. Summary by Related Catalogs Policy Introduction - On June 13, 2025, the US EPA issued a proposed rule for the RFS from 2026 - 2027, which led to a sharp rise in US soybean oil prices. A virtual public hearing will be held on July 8, 2025, and an additional meeting may be held on July 9, 2025 [2]. - The policy aims to provide market certainty for producers, offer lower oil prices for consumers, support the US biofuel industry, and enhance energy security and employment [3]. - The main contents of the policy include setting strong growth targets for major renewable fuels, prioritizing the US by reducing the value of foreign renewable fuels and raw materials, and canceling electricity as a qualified renewable fuel to achieve the goal of canceling the EV mandate [3]. Policy Details - The EPA proposed to set the total RV0 for 2026 at 24.02 billion RINs, an almost 8% increase from 2025, and 24.46 billion RINs for 2027, a nearly 2% increase from the previous year [5]. - The obligated quantities of biomass diesel for 2026 and 2027 are set at 5.61 billion gallons and 5.86 billion gallons respectively, exceeding market expectations [6]. - The proposed policy will increase the production of US biomass diesel, raise the operating rate, and increase the demand for raw materials [6]. Impact on Raw Material Prices and Demand - North American domestic raw materials for renewable diesel have a premium of about 10 cents per pound (about $220 per ton) over overseas raw materials. The premium is dynamic and may widen if the RIN price rises. The US soybean oil price is more volatile, and there is a risk of a 10% - 20% upward fluctuation in the long - term. The demand from small refineries is uncertain [10]. - The increasing biomass diesel obligation and differential subsidies will lead to the use of North American soybean oil and rapeseed oil for biomass diesel production, while overseas raw materials will be used in the food and oleochemical markets. The price of raw materials for biomass diesel is higher than that in other industries [11]. - Compared with 2024, the total demand for biomass diesel in 2026 is flat, and it increases in 2027. The global demand for vegetable oil is expected to increase, with North America leading the growth [13][14]. - The US may increase domestic soybean crushing and reduce soybean exports without increasing the soybean planting area. The USDA expects the 2025/26 soybean crushing volume to be 2.49 billion bushels (67.76 million tons), a 2.8% increase year - on - year. The domestic soybean crushing capacity has increased, and there is a probability of further increase by 2030. This may affect China's soybean imports, and the CBOT soybean price will be supported [18][22].