U.S. imports of used cooking oil rose 115 percent in February to 105,567 metric tons, led by high volumes from China, Vietnam, and Malaysia, according to the latest government data. That is more than double the prior month and a significant jump from recent import activity.
The trend is accelerating. According to IHS Markit customs data, U.S. UCO imports through April 9 have already reached 18,000 metric tons. That is approaching March's full-month total of 19,350 tons with three weeks still remaining in the month. China alone accounted for roughly a third of April's import volume so far.
At the current pace, April imports are on track to exceed March's totals well before month-end. That points to sustained and growing demand for imported UCO as feedstock procurement builds through the second quarter.
What is driving the surge
Renewable diesel producers are the buyers. Sources indicate that U.S. renewable diesel refiners are continuing to place large orders for Chinese UCO as they work to rebuild production capacity that went offline over the past year. With the EPA's record-high blending mandates now in place and the industry ramping back up, producers need feedstock, and they need it fast.
Imported UCO offers something domestic supply often cannot match at scale. It comes in large, consistent volumes, it is aggregated and pre-processed by major international traders, and it arrives at Gulf Coast terminals ready for refinery intake. For a renewable diesel plant trying to restart operations quickly, that kind of supply reliability is hard to pass up.
The recovery of renewable diesel run-rates is the central driver. The faster refiners can bring capacity back online, the more feedstock they need, and the more pressure that puts on the import channel.
Why this matters for domestic collectors
On the surface, surging import volumes look like a threat. More foreign supply entering the U.S. market means more competition for the gallons domestic collectors sell to domestic producers. If left unchecked, it could put downward pressure on pricing and weaken leverage for U.S. grease processors.
But the full picture is more nuanced. A few things are worth pointing out.
First, demand is expanding faster than supply. Even with import volumes climbing, the domestic biodiesel and renewable diesel industry is still ramping up. The EPA's Set 2 rule requires biodiesel and renewable diesel production to increase by over 60 percent compared to 2025 levels. That is a massive demand pull, and it is larger than what imports alone can fill. Domestic UCO is still very much needed.
Second, the regulatory environment is shifting in favor of domestic supply. Starting in 2028, foreign fuels and feedstocks will receive half the RFS compliance value compared to American-made products. That structural advantage for domestic UCO is already influencing how producers think about long-term procurement. The next two years are a transition window, but the direction is set.
Third, concerns about imported UCO quality and origin fraud are growing. California's CARB recently issued a request for proposals seeking a vendor to help identify UCO that has been fraudulently mixed with virgin oils like palm oil. This is a direct response to concerns that some imported UCO is not what it claims to be. For domestic collectors who can verify origin and quality, that scrutiny is a competitive advantage.
Fourth, renewable diesel capacity is heavily concentrated on the Gulf and West Coast. That geography favors imported supply in the short term. But biodiesel production, which is more distributed across the Midwest, runs largely on domestically sourced feedstock. As Midwest biodiesel plants continue to come back online, demand for U.S.-collected UCO will follow.
What collectors should be watching
The surge in imports is not going to ease overnight. Renewable diesel producers will continue to rely on foreign supply while they rebuild run-rates. Expect import volumes to remain elevated through the second quarter and potentially beyond.
But the long-term setup still favors domestic collectors. The regulatory tailwinds, the quality advantage, the growing compliance value of low-CI feedstock, and the expanding number of state-level clean fuel programs all point in the same direction. Used cooking oil collected in the U.S. is becoming more valuable, not less, over the next several years.
The key for collectors and processors is to focus on what you can control. Consistency of supply. Documentation of origin. Quality of product. Relationships with buyers who value domestic feedstock. Those are the things that will matter as the market sorts itself out.
The bottom line
Imports are climbing because U.S. renewable diesel production is waking up. That is a good sign for the broader industry, even if it creates short-term pressure on domestic collectors. The demand story is real, the mandate is in place, and the shift toward prioritizing domestic feedstock is already being written into federal policy.
The next few quarters will test the market. But the fundamentals have not changed. Demand for used cooking oil is going up. The question is which suppliers will be positioned to capture that value as the dust settles.
