Stagnation of U.S. biofuel policy leads to slower soybean purchases

Due to the absence of new guidance on clean fuel tax credits, biofuel producers have postponed their soybean oil purchasing plans for early next year. According to insiders, this has dampened demand for soybeans, prompting major agricultural commodity traders to also scale back purchases. Soybean oil is one of the top ingredients used in manufacturing various renewable fuels, such as renewable diesel and jet fuel. David Fialkov, Executive Vice President of Government Affairs at NATSO, stated that, as of mid-October, most fuel retailers had procured only about 10% of their anticipated biodiesel feedstock requirements for the upcoming first quarter. In contrast, over the past decade, this figure typically exceeded 80% by this time of year. "No one is producing, no one is buying, no one is blending," Fialkov said. The industry is awaiting guidance from the U.S. Department of the Treasury on the Clean Fuel Production Credit, set to take effect in January next year. A contentious issue dividing the industry concerns whether the tax incentive—known as Section 45Z—applies to low-carbon fuels made from biofuel feedstocks sourced overseas, such as used cooking oil and waste animal fats, which compete with domestically grown crops like soybeans. Another major uncertainty surrounding the tax credit relates to the outcome of next week’s U.S. presidential and congressional elections. It remains unclear whether the current administration will issue the proposed guidance before the inauguration of the new U.S. president.

The active pharmaceutical ingredient (API) market is entering a favorable period; specialty API stocks are poised for a 'dual boost' (a simultaneous rise in both earnings and valuation multiples); a list of related API-related stocks is provided (with tickers)

On Thursday morning, the stock index opened lower and retreated slightly, then traded sideways in a weak, range-bound manner—overall performance remained within expectations. In terms of trading volume, the Shanghai Composite generated RMB 15.3 billion in turnover during the morning session, markedly lower than yesterday’s RMB 17.43 billion for the same period. Without sufficient volume support, the market is expected to remain range-bound in the afternoon. Experienced investors know well that equity markets—whether rising or falling—rarely move in straight lines. Within a 200-point rally wave, several 50-point pullbacks may occur. We should avoid overtrading or second-guessing; instead, we must stay disciplined and patient. Such indecisive market conditions severely test retail investors’ patience. Currently, the index is oscillating above the 2,800-point level, with the recent gap remaining unfilled. Short-term technical indicators are evolving in a positive direction, suggesting limited near-term risk—though excessive optimism is unwarranted. The market is likely to remain range-bound in the near term. Prinston Pharmaceutical: A leading domestic API manufacturer riding the global API capacity shift trend. Over the past decade, global API production capacity has gradually shifted from Europe and the U.S. to emerging markets, driven by labor cost pressures and environmental regulations. Among recipients, China and India—both backed by supportive government policies and holding numerous Drug Master File (DMF) certifications—have emerged as primary beneficiaries. Leveraging its more mature foundational industrial system, cost advantages, and strengths in fermentation-based products, China is rapidly closing the gap with India in technology, quality assurance systems, and DMF certification. Prinston ranks second nationally in API export value (2018), positioning it well to benefit from the industry’s ongoing value reversion. Xianju Pharmaceutical: Its in-house API business holds potential to break through revenue growth bottlenecks. The company specializes in steroid drugs, primarily manufacturing corticosteroids, sex hormones (for gynecological and contraceptive use), and neuromuscular blocking agents for anesthesia. It holds a total of 124 regulatory approvals (covering both APIs and finished dosage forms) registered with China’s National Medical Products Administration (NMPA). Tianyu Co., Ltd.: Supply shortages of sartan-class APIs are driving both volume and price increases, boosting profitability. Sartan-class drugs represent the latest generation of antihypertensives, offering strong blood-pressure-lowering efficacy, good tolerability, fewer adverse effects, and protective benefits for target organs—making them widely used clinically. Tianyu is among the world’s largest suppliers of sartan-class APIs and intermediates. Sartan products constitute the company’s core business, accounting for 86% of revenue and 95% of gross profit in H1 2019. In 2018, the company expanded sartan production capacity, enabling rapid output ramp-up; combined with rising prices, this led to simultaneous volume and price gains, propelling strong financial performance. In 2019, it achieved RMB 2.111 billion in revenue (+44%) and RMB 583 million in net profit attributable to shareholders (+256%). Aoxiang Pharmaceutical: On the evening of December 4 last year, the company announced receipt of a Good Manufacturing Practice (GMP) Certificate issued by the Zhejiang Provincial Drug Administration. The certified production facility is Workshop No. 1, with approved annual design capacities of: Entecavir—200 kg/year; Bicyclol—6 tons/year. Entecavir is primarily used to treat chronic hepatitis B infection with active viral replication and persistently elevated serum transaminase levels; Bicyclol is an API used in manufacturing generic versions of Bicilon®, mainly indicated for treating elevated aminotransferase levels caused by chronic hepatitis. Tonghe Pharmaceutical: At the end of last year, the company announced that its APIs—Rebamipide, Gabapentin, and Aceclofenac—had already achieved commercial sales in the South Korean market. Meanwhile, its APIs—Telmisartan and Celecoxib—received drug registration certificates from South Korea’s regulatory authority in April 2019 and August 2019, respectively, and are now poised for commercial launch.

Alto Ingredients Taps Into 45Z Credits: How Big Is the Opportunity?

Jun 16, 2026

Alto Ingredients reported $3.9 million in Q1 2026 from Section 45Z tax credits, projecting $15 million annually via carbon reduction strategies. Shares surged 387% as the company expands eligibility and maintains a Strong Buy rating.