Tallow oil prices in Germany strengthened significantly through March 2026, driven by tightening supply and robust demand from the biodiesel sector. Early-month maintenance at rendering facilities and reduced slaughter activity constrained feedstock availability, limiting domestic production. As the month progressed, stronger cross-border demand from the Netherlands and Belgium further tightened supply, while inventories declined toward the end of the month. Demand remained firm across key sectors, with biodiesel producers actively securing feedstock and oleochemical manufacturers maintaining steady offtake. In contrast, demand from sustainable aviation fuel applications remained limited. On the supply side, higher energy costs and geopolitical tensions involving Iran increased production and logistics expenses, encouraging suppliers to maintain elevated offer levels. According to ChemAnalyst, the near-term outlook remains firm, supported by continued demand strength and constrained availability. However, future price direction will depend on supply conditions, energy costs, and potential changes in trade flows.
