China’s used cooking oil exports surge 55%, with Europe becoming the largest buyer

China increased its exports of used cooking oil (UCO), a feedstock for biofuel production, by 55% year-on-year in January–August 2026, reaching 2.57 mln tons compared with 1.66 mln tons in the same period of 2025. Europe became the largest export destination, importing 850 thsd tons of Chinese feedstock, up 24% year-on-year. The European market accounted for 33% of China’s total exports, while shipments to the US reached 452 thsd tons.

The Netherlands was the largest European buyer of Chinese used cooking oil, importing 534 thsd tons over the eight-month period. Italy purchased 123 thsd tons, Spain 99 thsd tons and Belgium 40 thsd tons. Overall, EU imports of UCO from non-EU countries increased by 8% year-on-year in January–July to 1.76 mln tons. China remained the largest supplier, accounting for approximately 35% of imports with 624 thsd tons, while Malaysia supplied 275 thsd tons and Indonesia 127 thsd tons. The increase in purchases reflects strong demand for alternative feedstocks from Europe’s biofuel industry.

Despite higher purchase prices in the US, the European market remains more attractive for steady shipments of Chinese oil due to fewer trade restrictions. According to Fastmarkets, UCO is priced at $1,188/t FOB China, while the delivered price at the ports of Amsterdam, Rotterdam and Antwerp reaches $1,310/t. On the US Gulf Coast, the same feedstock is assessed at $1,554/t. However, the higher price premium is partly offset by transportation costs, tariffs and changes in government support for the biofuel sector. In particular, since the beginning of 2026, the US 45Z tax credit programme has excluded biofuels produced from feedstocks originating outside the US, Canada and Mexico.

Meanwhile, US imports of Chinese used cooking oil remain volatile. In January–August, shipments from China to the US increased by 56% year-on-year but remained 46% below the 2024 level. After reaching 168 thsd tons in June, shipments fell to 12 thsd tons in August. By contrast, deliveries to Europe averaged around 106 thsd tons per month. Other major destinations for Chinese exports included Canada, which purchased 263 thsd tons, as well as Singapore and Malaysia, which together imported 632 thsd tons. The expansion of export destinations allows Chinese suppliers to respond to changes in trade policies and price premiums across different markets.

In the long term, Europe could strengthen its position as the leading importer of used cooking oil for biofuel production. According to Fastmarkets forecasts, EU UCO imports are expected to increase from 2.5 mln tons in 2025 to 2.77 mln tons in 2035, accounting for approximately 57% of the feedstock supply. At the same time, the European market remains tightly regulated, with importers required to verify product origin and comply with certification requirements. Future developments in global trade will depend on the expansion of the biofuel industry, changes in US tariff and tax policies, and China’s ability to increase the collection and export of used cooking oil.

Tags: China, EU, used cooking oil