Argus launches first ever Chinese UCO and UCOME price assessments
SINGAPORE, February 2, 2018
Surging exports of used cooking oil (UCO) and UCO methyl ester (UCOME) from China to Europe have led to a need for greater market transparency. Leading global energy and commodity news and price reporting agency Argus has responded by launching price assessments today for these products, which are used as biodiesel.
The new assessments reflect market prices for UCO and UCOME loaded from Shanghai, Suzhou and Huangpu and shipped to Europe. The assessments are calculated using a market-appropriate methodology that is fully compliant with the Iosco Principles for Price Reporting Agencies.
Chinese exports of UCO and UCOME to the European biodiesel market are soaring. Around 42,000t of Chinese UCO was shipped to Europe between January and October 2017, up from 7,000t a year earlier. UCOME exports from China to Europe jumped from less than 8,000t in 2015 to 36,000t in 2016, and surged to more than 150,000t in the first 10 months of last year.
Supply of UCO and UCOME from China is plentiful and relatively low cost. More Chinese sellers have become ISCC-certified to sell in Europe as European buyers shift away from crop-based grades to meet rising biodiesel mandates. Europe is increasingly looking to second-generation biodiesel, such as UCOME, which is more sustainable and offers higher greenhouse gas emissions savings.
Argus Media group chairman and chief executive Adrian Binks said: “These new assessments will provide increased insight into this growing supply source from China. We are pleased that Argus has been able to respond quickly to industry demand.”