Wilmar

Wilmar: is down 0.9% at $3.28, extending its recent weakness. According to Bloomberg, the EU Commission has on 27 May ’13 put the highest provisional anti-dumping tariffs on Wilmar’s biodiesel sales to the EU at 9.6%. These measures were applied bcs of complaints filed by the European Biodiesel Board, which pointed to prima facie evidence of the dumping of biodiesel. Other Indonesia companies have been slapped with tariffs of btwn 2.8 % to 9.6%. First Resources by the way managed to avoid the duties. DBSV says the affected parties have one-month to respond before the measure are implemented. Wilmar does not disclose its biodiesel segment contribution, but DBSV believes Wilmar should be sufficiently diversified in other markets, such that impact is “insignificant”. The house keeps its Hold rating and TP $3.34. Judging from Wilmar’s price action, other market watchers may not be convinced. Indonesia expects its biodiesel installed capacity to reach 3.6m tons this year, accounting for 9% of worldwide supply, according to the Indonesian Vegetable Oil Refiners Association. Imports from Indonesia have jumped considerably over 2008, with market share rising dramatically from 1.4% to 9.7%, according to EU data. The EU is set to issue a final ruling on whether to turn the provisional duties into permanent levies that may end in 5 yrs after a full investigation is finished in the next few mths.