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China has witnessed a significant 55% year-on-year surge in its exports of used cooking oil (UCO), a critical feedstock for the global biofuel industry. Between January and August 2026, export volumes reached 2.57 million tons, up from 1.66 million tons during the same period in 2025. Europe has emerged as the primary destination for these shipments, absorbing 850,000 tons—a 24% annual increase. Currently, the European market accounts for a substantial 33% of China’s total UCO exports, while shipments to the United States totaled 452,000 tons.
Within Europe, the Netherlands led the purchasing rankings, importing 534,000 tons over the eight-month period. Other significant buyers included Italy with 123,000 tons, Spain at 99,000 tons, and Belgium with 40,000 tons. On a broader scale, total European Union imports of UCO from non-EU nations rose by 8% to 1.76 million tons through July. China remains the dominant supplier, providing approximately 35% of these imports, followed by Malaysia with 275,000 tons and Indonesia with 127,000 tons. This trend underscores a robust appetite for alternative feedstocks within the European biofuel sector.
Despite the allure of higher price premiums in the United States, Chinese suppliers increasingly favor the European market due to its relative lack of trade barriers. According to Fastmarkets data, Chinese UCO is priced at $1,188/t FOB China, while delivered prices at the ARA ports (Amsterdam, Rotterdam, and Antwerp) hover around $1,310/t. While prices on the US Gulf Coast are assessed much higher at $1,554/t, the advantage is largely negated by transport costs, tariffs, and policy shifts. Notably, the US 45Z tax credit program, implemented at the start of 2026, now excludes biofuels derived from feedstocks sourced outside of the United States, Canada, and Mexico.
US demand for Chinese UCO has remained highly volatile. While shipments to the US grew 56% year-on-year in the first eight months of 2026, they remained 46% below 2024 levels. Monthly shipments plummeted from a peak of 168,000 tons in June to just 12,000 tons by August. In contrast, European deliveries remained stable, averaging 106,000 tons per month. Other vital outlets for Chinese exports included Canada, which took 263,000 tons, and the combined Singaporean and Malaysian markets, which imported 632,000 tons. This diversification allows Chinese exporters to pivot quickly in response to changing tax regimes and regional price spreads.
Looking ahead, Europe is poised to solidify its role as the world's leading importer of used cooking oil. Fastmarkets forecasts that EU imports will grow from 2.5 million tons in 2025 to 2.77 million tons by 2035, representing 57% of the total feedstock supply. However, the European market will remain characterized by strict oversight, requiring importers to provide rigorous origin verification and sustainability certification. The future of this trade will be shaped by the continued expansion of the biofuel sector, evolving US trade policies, and China's internal capacity to collect and process used oils for the export market.
Source: UkrAgroConsult