China’s tallow fatty acid market weakened in January as pre-Lunar New Year slaughter rates and expanded downstream capacity increased supply faster than demand. Higher beef processing boosted feedstock availability for coastal producers, while additional esterification capacity added further supply pressure. At the same time, downstream formulators held comfortable finished-goods inventories following year-end production, leading many buyers to delay February nominations amid softer offers. Producers focused on volume sales, contributing to a looser tallow fatty acid spot market tone. Demand trends were mixed: detergent consumption slowed post-holiday, rubber compounders reduced purchases due to rising inventories, while mid-tier oleochemical and personal-care segments provided moderate seasonal restocking support. Global biofuel demand continued to underpin export volumes. The near-term tallow fatty acid outlook suggests a potential February rebound and March–April improvement, followed by softening before a possible July recovery, depending on demand and operating rates.
