China increased its waste oil exports by 55%, and the EU became the largest buyer

During January-August 2026, China increased its exports of used cooking oil (UCO), used as a raw material for biofuel production, by 55% compared to the corresponding period last year, from 1.66 to 2.57 million tons, in particular to the EU - by 24% to 850 thousand tons (which accounted for 33% of total exports) and to the USA - to 452 thousand tons.

 

During the indicated period, the main buyers of Chinese UCO were the Netherlands (534 thousand tons), Italy (123 thousand tons), Spain (99 thousand tons), and Belgium (40 thousand tons).

 

Overall, during January-July 2026, the EU increased its UCO imports by 8% compared to last year to 1.76 million tonnes, of which 35% or 624 thousand tonnes were supplied from China, 275 thousand tonnes from Malaysia and 127 thousand tonnes from Indonesia. The increase in imports indicates high demand for alternative raw materials from the EU biofuel industry.

 

Despite higher UCO prices in the US, the EU market remains more attractive to Chinese exporters due to fewer trade restrictions. According to Fastmarkets, the price of UCO on a FOB China basis is $1,188/t, with delivery to the ports of Amsterdam, Rotterdam and Antwerp it rises to $1,310/t, and with delivery to the US Gulf Coast – $1,554/t. However, the high price is offset by higher transport costs, duties and changes in government support programs. For example, from 2026 in the US, the tax breaks program will not apply to biofuels produced from raw materials obtained from outside the US, Canada and Mexico.

 

Chinese UCO shipments to the US remain volatile. In January-August 2026, they grew by 56% year-on-year, but were 46% lower than in 2024. In June, they reached 168,000 tonnes, and in August they decreased to 12,000 tonnes.

 

Meanwhile, UCO supplies to the EU amount to about 106,000 tonnes per month. In addition, Canada purchased 263,000 tonnes of Chinese waste oil, and Singapore and Malaysia together purchased another 632,000 tonnes. The expansion of sales markets allows Chinese exporters to respond quickly to changes in trade policy and world prices.

 

Europe could become the world's largest buyer of used cooking oil in the coming years. Fastmarkets forecasts that the EU will increase its UCO imports from 2.5 million tonnes in 2025 to 2.77 million tonnes in 2035, accounting for 57% of its supply.

 

At the same time, the EU market remains under the pressure of strict regulation: importers must confirm the origin of raw materials and comply with certification requirements.

 

Further dynamics of UCO trade will depend on the development of the biofuel industry, changes in US customs and tax policies, and China's ability to increase exports of such oil.