September 3, 2025
INTERACTIVE: Policy shifts, renewable mandates drive Asia’s UCO market transformation in 2025
Asian used cooking oil markets have been experiencing unprecedented transformation in 2025 as prices surged to 33-month highs of $1,085/mt on July 25, driven by competition between sustainable aviation fuel producers and traditional biodiesel manufacturers.
Major policy shifts are reshaping trade flows: China has eliminated its 13% export tax rebate and introduced SAF export quotas, Indonesia has restricted used cooking oil exports to support its B40 biodiesel mandate, and Malaysia is positioning itself as Southeast Asia's primary export hub.
The EU’s Renewable Energy Directive III and US policy changes are creating new demand patterns, fundamentally altering the supply-demand balance that has defined Asian UCO markets for the past decade.