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The Effect Of African Swine Fever Hitting Regions Of China On The UCO Market

Flexi 5ffa UCO bid/offer around $570-580/t FOB and 6ffa bulk offered $610/t FOB north China. Prices still cheaper in the south, around $590-600/t FOB range heard but not sure spec or loading dates.

 

Ucome in China has come off to around 5800 rmb/t in the south but still above 6000 rmb/t in the north.China Bio still not closed December.

 

There’s been some conflicting talk around the effect of African swine fever hitting regions of China on the UCO market. The government is cracking down on waste being used for animal feed so more UCO should be siphoned to Ucome and export, though a few said they haven’t seen much impact so far and using UCO in animal feed was illegal anyway so diverted volumes wouldn’t be that big. Others said that on the contrary the government restrictions might limit UCO collection in general and so limit availability but either way but something to keep an eye on.


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