European used cooking oil (UCO) supplies face imminent difficulties as the effects of the coronavirus limit local collection, resulting in workers and business having movements restricted.
Producers of biodiesel made from UCO (Ucome) say contracts for March have largely been fulfilled and plants are continuing to run close to normal capacities. But from April onwards, producers are citing a fall of 70-90pc for deliveries of UCO feedstock, as collectors wait out virus movement restrictions. Producers say what will remain will be UCO collected from agricultural conglomerates, bigger businesses which are largely maintaining operations.
There appears to be less pressure on the use of animal fats (tallow) which largely come from agribusiness, as meat production and its waste collection remain less affected. But the production of biodiesel from tallow (TME) is significantly smaller than Ucome output.
Exports of Chinese UCO which loaded in January and February were disrupted by the effects of the virus. Collection is slowly building again in China. But with most European nations under restrictions as a result of the virus, it is unclear if there will be sufficient demand to take up Chinese cargoes.
EU imports of UCO in January were a little under 145,000t according to customs data, up by 27pc on the year and up from 125,000t on the month. Much of this will have been cargoes loaded in December, before the onset of virus-related movement restrictions in China and elsewhere.
But Chinese cargoes declined to under 20,000t in January, the lowest since April 2018, down from 45,000t on the month and down by 26pc on the year. It was ahead of the US which moved a little under 18,000t, Malaysia with 15,000t and Indonesia with 10,000t.
Unusually for UCO data, 27,000t was recorded as having been delivered to the Netherlands from non-specified suppliers. This is by far the highest non-specified UCO provision on record. It is not clear if Eurostat will assign this volume to a particular supplier under any future data revision.
The EU imported 1.65mn t of UCO in 2019, up by 11pc on the year.
