China to Divert UCO Export to European on Steep US Tariffs

A Reuters’ report datelined Singapore, April 30 says China’s used cooking oil (UCO) exports to the United States are set to plunge in coming months due to steep tariffs, forcing sellers to divert shipments to Europe and elsewhere.  The Trump administration is now charging 125% import tariff on Chinese UCO effective this month.

China’s UCO exports hit an all-time high last year at nearly 3 million metric tons or worth $2.64 billion, according to Chinese customs, Reuters wrote.  “For the time being, arbitrage to the U.S. is closed and we think it will remain so for the medium term,” said Richard Dickinson, Shanghai-based head of trading Amarus Trading, one of the largest dealers of Chinese UCO.  “Some of the exports will be diverted to Europe and new markets in Asia such as Korea, Thailand, Malaysia and India.”