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February 24, 2025
By Rohan Somwanshi and with Chua Wei Jun
The global used cooking oil market is at a crossroads as key participants navigate a web of trade policies and shifting demand. In the last couple of years, the EU's mandates and tax credits in the US spurred UCO demand, with China emerging as the leading supplier.
However, new US regulations in 2025 could potentially redirect UCO back to Europe. Additionally, Asian suppliers are now adopting protectionist measures for exports, with China canceling its export tax rebate and Indonesia restricting UCO exports -- opening doors for Malaysia to capitalize on the situation. The markets expect dramatic changes in the UCO trade landscape that could impact global biofuels strategies in 2025.
Further reading: Used cooking oil conundrum