The used cooking oil (UCO) market is experiencing significant trade flow changes as policy adjustments create new dynamics between major importing and exporting regions.
China increases UCO exports to Europe and Singapore
Chinese customs data reveals UCO exports jumped to 262,000 mt in June, up from 192,000 mt in May. The majority of these volumes sailed to Europe and Singapore, with only 32,000 mt heading to the US market.
This shift reflects the changing economics of UCO trading, where European and Asian buyers are capturing more of China’s available supply.
US UCO imports plummet following policy changes
US UCO imports dropped sharply to 93,524 mt in June from 215,102 mt in May. This decline appears linked to US policy limiting biofuel credits to biofuels produced only from feedstock sourced in the US, Canada, and Mexico.
The policy change is creating a significant impact on traditional UCO trade routes, as suppliers and buyers adjust to new regulatory requirements.
EU maintains steady UCO import levels
According to EU Commission data, the EU imported around 150,000 mt of UCO in July, compared to 133,000 mt in June. Year-over-year comparisons show July 2024 imports at 192,000 mt, indicating some moderation from last year’s levels.
From January to July, the EU imported 1.051 mmt of UCO versus 1.046 mmt in the same period last year, showing relatively stable demand despite global trade shifts.
This article is part of our biodiesel market analysis available here: https://app.vespertool.com/market-analysis/2166
