The Mystery of Low Kitchen Waste Oil Prices in South China

Bestway Bioenergy, The phenomenon that prices of kitchen waste oil in South China have long been lower than those in other markets has sparked concerns in the industry.

 

According to feedback from market participants, although the price of waste oil in South China is more attractive, its actual quality indicators - such as iodine value - are generally low, leading to higher process requirements and cost pressure on downstream processors.

 

Industry insiders point out that if low-quality waste oil is purchased at low prices, subsequent processing may trigger the risk of return due to substandard quality, which in turn pulls up the comprehensive cost.  

 

“On the surface, the price difference is obvious, but counting the return rate and processing losses, there is little profit margin left.” An anonymous trader confessed.

 

Some enterprises to maintain competitiveness, have to strictly screen raw materials, but high standards mean that procurement costs rise, low price advantage is offset. In the long run, balancing quality and cost is key.