China. 2024 UCO exports hit all-time high on demand from US, EU, Singapore

China’s used cooking oil exports reached a record high of 2.951 million mt in 2024, up 43.49% from 2023, amid a rise in imports from the US, the EU and Singapore, the latest data from S&P Global Market Intelligence’s Global Trade Atlas showed.

The US was the top importer of China’s UCO in 2024 at 1.267 million mt, up by 51.94% from 2023 and accounting for 42.93% of the total China UCO exports, as California’s Low Carbon Fuel Standard started giving tax credits for renewable biodiesel made from waste products.

However, there was some uncertainty around China’s upcoming UCO exports to the US as the US Treasury Department’s guidance for the 45Z clean fuel tax credit made imported UCO no longer eligible for tax benefits.

The EU was the second-largest buyer of Chinese UCO at 737,000 mt, up 39.39% from 2023, with the Netherlands, Spain and Belgium as the top destinations, accounting for more than 90% of the total EU volumes. Demand has risen as the EU seeks feedstock UCO after imposing antidumping duties of up to 36.4% on cheaper Chinese biodiesel imports in August 2024. The EU’s fuel mandate of at least 2% sustainable aviation fuel at airports beginning in 2025 has also aided UCO demand.

China’s biofuel strategy for the EU sees the consumption of 50,000 mt of sustainable aviation fuel by 2025, requiring at least 3 million mt of UCO. To support local producers affected by EU tariffs, China plans to introduce an export quota for B24 biodiesel-blended marine fuel in 2025.

Singapore also bought around 737,000 mt of Chinese UCO in 2024, up 55.61% from 2023. Demand for UCO came largely from Finnish renewable energy provider Neste’s biodiesel and sustainable aviation fuel refinery in Singapore, which experienced an outage last year.

Despite prices reaching a two-year high, global UCO demand remains strong and will continue to support China’s UCO exports, market sources said.

Platts, part of S&P Global Commodity Insights, assessed UCO FOB North Asia at $1,015/mt Jan. 31, unchanged day over day.

Tags: China