NEW DELHI: Because the demand for sustainable feedstock rises, Asia‘s used cooking oil (UCO) market anticipates an upturn in 2024.
Nevertheless, the outlook for used cooking oil methyl ester (UCOME) faces uncertainty within the European Union (EU), with scrutiny on Chinese language biodiesel imports, in accordance with S&P World 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.
Historically, European consumers replenish UCO inventories within the first 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.
Nevertheless, 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, particularly, confirmed a 43 per cent improve in Malaysian UCO shipments in November. China’s UCO exports to the US, a market that gained prominence in 2023, are more likely to proceed in 2024.
The US, with beneficial incentives for sustainable aviation gas and biodiesel producers, presents a gorgeous marketplace for Chinese language UCO exporters.
However, China’s UCOME biodiesel faces challenges in early 2024 because the EU tightens scrutiny on Chinese language biodiesel imports, initiating an antidumping investigation. The UCOME market might expertise downward strain amid these regulatory developments, impacting China’s provides to the EU.
Whereas the UCO market anticipates constructive momentum, uncertainties within the UCOME sector underline the advanced dynamics of Asia’s biodiesel panorama within the coming yr.
Nevertheless, the outlook for used cooking oil methyl ester (UCOME) faces uncertainty within the European Union (EU), with scrutiny on Chinese language biodiesel imports, in accordance with S&P World 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.
Historically, European consumers replenish UCO inventories within the first 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.
Nevertheless, 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, particularly, confirmed a 43 per cent improve in Malaysian UCO shipments in November. China’s UCO exports to the US, a market that gained prominence in 2023, are more likely to proceed in 2024.
The US, with beneficial incentives for sustainable aviation gas and biodiesel producers, presents a gorgeous marketplace for Chinese language UCO exporters.
However, China’s UCOME biodiesel faces challenges in early 2024 because the EU tightens scrutiny on Chinese language biodiesel imports, initiating an antidumping investigation. The UCOME market might expertise downward strain amid these regulatory developments, impacting China’s provides to the EU.
Whereas the UCO market anticipates constructive momentum, uncertainties within the UCOME sector underline the advanced dynamics of Asia’s biodiesel panorama within the coming yr.
