Lang
China’s exports of used cooking oil reached a record high in 2024, according to a report issued by the US Department of Agriculture.
The United States was the largest market for China’s used cooking oil exports last year, importing 1.27 million tonnes, up nearly 52% compared with 2023. This represented around 43% of China’s total exports of the product, according to a March 7 report by the USDA’s Foreign Agricultural Service (FAS).
However, after China removed the 13% export tax rebate on used cooking oil effective December 1, exports fell by 60% month on month, according to a trade update from the FAS Global Agricultural Information Network (GAIN).
Market reports indicated that China’s used cooking oil market slowed further after the Lunar New Year holiday in early February due to weaker demand, lower prices, traffic congestion, shipping delays, and the removal of the tax rebate.
The USDA said market pessimism remains, with many traders holding inventories or selling at low prices because of liquidity issues and weak market confidence.
Sellers were reluctant to sell at low prices, while many traders reduced purchases to avoid losses caused by price volatility.
According to industry sources, international demand for used cooking oil has reached unprecedented levels, with significant import growth from Europe, North America, and Singapore in Asia. This stands in sharp contrast to the sluggish domestic market.
Industry analysts noted that the domestic slowdown is temporary and that the market is likely to recover as global demand continues to grow and domestic supply remains tight.
Some sources said the market is heading toward a new wave of growth driven by urgent shipping needs, supply constraints, and rising global demand for biofuels.
However, others said future market trends will depend on supply and demand dynamics, policy developments, and changes in global markets.