- Sustainable Aviation Fuel (SAF) markets remained firm through much of Q2 2026 before easing toward late June as supply conditions gradually improved.
- Used cooking oil and hydrogen remained the key cost drivers, while energy, processing and certification expenses kept production costs structurally elevated.
- Airline decarbonization targets and blending policies supported demand, although the large cost gap with conventional jet fuel continued to restrict voluntary adoption.
In China, the average SAF price was USD 2510/MT (FOB) in June. India recorded an average price of USD 2598/MT (CIF) during June. During Q2 2026, Asian Sustainable Aviation Fuel (SAF) markets strengthened through May and early June before easing toward quarter-end. The early-quarter firmness reflected high used cooking oil and hydrogen costs, limited commercial production and increasing policy-led demand from airlines. China continued expanding its role as a regional SAF supplier, supported by growing processing capacity and access to used cooking oil feedstock. Supply from China also became increasingly competitive for international buyers, encouraging greater export interest. India moved closer to commercial adoption after SAF-blended aviation fuel was formally brought within the regulated aviation-fuel framework, improving the basis for future blending and procurement. By late June, improved Asian availability and weaker conventional energy markets reduced some outright pressure, although SAF remained structurally expensive because of feedstock, conversion and certification costs.