Report: Chinese UCO exports fall sharply in December
March 24, 2025
BY Erin Voegele
China’s exports of used cooking oil (UCO) reached a record high in 2024 but fell sharply in December after the Chinese government eliminated the 13% export tax rebate for UCO, according to a report filed with the USDA Foreign Agricultural Service’ Global Agricultural Information Network.
The U.S. was the top export market for Chinese UCO in 2024, at 1.27 million tons. That volume is up approximately 52% when compared to 2023, accounting for 43% of China’s total UCO exports in 2024. The country’s total UCO exports, however, fell by 60% between November and December after the government of China eliminated a 13% export tax rebate on UCO.
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The elimination of the UCO export tax rebate was announced on Nov. 15, 2024, and became effective Dec. 1, 2024. According to a November 2024 GAIN report, the policy shift aimed to redirect China’s biobased diesel industry from an export-focused model to a more domestically oriented industry. The change is also expected to create export opportunities for sustainable aviation fuel (SAF) in China, as the European Union provisionally excluded SAF from proposed antidumping duties in July 2024.
The policy shift triggered immediate changes in UCO pricing, according to the report. Leading Chinese UCO producers set initial December and January contract prices at $1,000 to $1,050 per metric ton, an increase of $100 to $150 over previous rates.
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In addition to the 60% reduction in UCO exports experienced in December, the GAIN report indicates that the China’s UCO market slowed further in February due to declining order numbers and prices, traffic congestion and logistics delays. According to the report, many UCO traders are reluctant to sell at lower prices and are minimizing purchases to avoid losses from price fluctuations.
Despite China’s sluggish domestic UCO market, international demand for UCO has reached unprecedented levels, according to the report. The current domestic market slump in China is expected to be temporary, as growing international demand and tightening domestic supplies lead to a market rebound.
A full copy of the report is available on the USDA FAS GAIN website.
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