NEW DELHI: As the demand for sustainable feedstock rises, Asia‘s used cooking oil (UCO) market anticipates an upturn in 2024.
However, the outlook for used cooking oil methyl ester (UCOME) faces uncertainty in the European Union (EU), with scrutiny on Chinese biodiesel imports, in accordance with S&P Global Commodity Insights.
The FOB UCO China worth is poised for restoration after December 2023 lows, pushed by heightened demand inquiries from European consumers anticipated in January.
Traditionally, European consumers replenish UCO inventories in the primary quarter, resulting in an anticipated enchancment in demand. China’s UCO spot worth witnessed a 51 per cent decline from June 2022 highs to early December 2023, reflecting difficult biodiesel fundamentals in Europe.
However, expectations of elevated demand post-winter point out a possible market rebound. Malaysia‘s UCO provides are anticipated to be actively wanted in 2024, following a surge in This autumn 2023 shipments to Singapore, the EU, and the US.
The EU, in explicit, confirmed a 43 per cent enhance in Malaysian UCO shipments in November. China’s UCO exports to the US, a market that gained prominence in 2023, are prone to proceed in 2024.
The US, with beneficial incentives for sustainable aviation gasoline and biodiesel producers, presents a sexy market for Chinese UCO exporters.
On the opposite hand, China’s UCOME biodiesel faces challenges in early 2024 because the EU tightens scrutiny on Chinese biodiesel imports, initiating an antidumping investigation. The UCOME market might expertise downward strain amid these regulatory developments, impacting China’s provides to the EU.
While the UCO market anticipates constructive momentum, uncertainties in the UCOME sector underline the complicated dynamics of Asia’s biodiesel panorama in the approaching yr.
However, the outlook for used cooking oil methyl ester (UCOME) faces uncertainty in the European Union (EU), with scrutiny on Chinese biodiesel imports, in accordance with S&P Global Commodity Insights.
The FOB UCO China worth is poised for restoration after December 2023 lows, pushed by heightened demand inquiries from European consumers anticipated in January.
Traditionally, European consumers replenish UCO inventories in the primary quarter, resulting in an anticipated enchancment in demand. China’s UCO spot worth witnessed a 51 per cent decline from June 2022 highs to early December 2023, reflecting difficult biodiesel fundamentals in Europe.
However, expectations of elevated demand post-winter point out a possible market rebound. Malaysia‘s UCO provides are anticipated to be actively wanted in 2024, following a surge in This autumn 2023 shipments to Singapore, the EU, and the US.
The EU, in explicit, confirmed a 43 per cent enhance in Malaysian UCO shipments in November. China’s UCO exports to the US, a market that gained prominence in 2023, are prone to proceed in 2024.
The US, with beneficial incentives for sustainable aviation gasoline and biodiesel producers, presents a sexy market for Chinese UCO exporters.
On the opposite hand, China’s UCOME biodiesel faces challenges in early 2024 because the EU tightens scrutiny on Chinese biodiesel imports, initiating an antidumping investigation. The UCOME market might expertise downward strain amid these regulatory developments, impacting China’s provides to the EU.
While the UCO market anticipates constructive momentum, uncertainties in the UCOME sector underline the complicated dynamics of Asia’s biodiesel panorama in the approaching yr.
