<article><p class="lead">Malaysia's return to a <a href="https://www.argusmedia.com/en/news/2220113-malaysia-imposes-total-lockdown-as-covid19-cases-surge">full two-week lockdown</a> from today may worsen the scarcity of Malaysian waste-based biodiesel feedstocks. </p><p>Prices of used cooking oil (UCO) flexitank exports are already at record highs of $$1,110-1,150/t fob because of tight supplies and firm demand from renewable diesel producers. </p><p>Kuala Lumpur implemented its third round of <a href="https://direct.argusmedia.com/newsandanalysis/article/2213693">movement control orders</a> (MCOs) last month to curb the spread of Covid-19.</p><p>With no restaurant dining and limited travel, UCO collections may be cut by as much as 50pc of pre-pandemic levels as was the case during the first wave of infections and when MCOs were introduced last March.</p><p>Net UCO exports slumped by 77pc to 26,000t last year from 113,000t in 2019.</p><p>Palm oil production is considered essential, so output of the vegetable oil and off-shoot palm oil mill effluent should be unaffected, though suppliers said it may take a few days for operations to normalise.</p><p class="bylines">By Amandeep Parmar</p></article>
