Neste rents Chinese port storage to boost UCO trade

Finnish biodiesel producer and oil refiner Neste has leased used cooking oil (UCO) storage at Tianjin port in northeastern China to bolster Chinese UCO trade volumes loading at the port.

The exact storage capacity under the agreement is unknown.

Neste is seeking to increase its feedstock sourcing to support expanding hydrotreated vegetable oil (HVO) production in Singapore and Europe.

Trading firms also plan to boost UCO bulk trade to Europe as demand for the feedstock recovers alongside transport fuel and biodiesel production as the spread of Covid-19 comes under control.

Chinese UCO suppliers hope these developments will quicken the pace of price recovery, as buyers increasingly vie for larger volumes. Bulk UCO was valued at $675/t fob China at last week's close. It was slow to regain ground since it declined to $645/t on 9 April from a sustained high of $855/t from 17 January-14 February.

By Lauren Moffitt