For the Quarter Ending June 2025
North America
• In April 2025, the Tallow Oil Price Index in the USA registered a notable rise, supported by strong domestic demand from soap, oleochemical, and lubricant manufacturers, alongside tightening global supply conditions.
• Warmer temperatures led to concerns over product degradation during transport, prompting importers and distributors to advance procurement cycles, pushing spot prices upward as inventory coverage was reinforced.
• Limited vessel availability, elevated container rates, and longer transit times contributed to a higher product production cost trend, as suppliers passed on logistics-related increases to downstream buyers.
• In May 2025, the Price Index showed a steady uptrend as industrial activity remained robust across key manufacturing hubs, sustaining offtake from sectors such as biodiesel blending, candles, and personal care products.
• U.S. importers responded to persistent global tightness by securing forward contracts at higher premiums, further elevating spot prices and reflecting confidence in a firm product demand outlook.
• By June 2025, the Tallow Oil Price Index saw its sharpest quarterly gain, driven by robust industrial offtake and intensified restocking efforts in anticipation of continued tightness in global supply pipelines.
• Downstream sectors maintained healthy consumption, and improved macroeconomic indicators encouraged processors to secure material in advance, aligning with an optimistic product price forecast for early Q3.
• Strategic inventory drawdowns and higher warehouse turnover rates were observed in key U.S. coastal regions, with distributors operating under leaner stock positions by the end of June.
• In July 2025, the Tallow Oil Price Index is likely to increase, as ongoing strength in personal care and oleochemical sectors, coupled with reduced inventory carryovers and import-side delays, supports a bullish short-term product price forecast.
APAC
• In April 2025, the Tallow Oil Price Index in India rose by 4.17%, with the spot price increasing from USD 867/MT to USD 890/MT, fueled by robust domestic demand and seasonal supply tightness.
• Price increases in April were supported by India's fastest industrial growth since mid-2024, driving higher consumption in soaps, oleochemicals, and lubricants, as buyers stockpiled ahead of summer-induced stability risks.
• Concerns around heat-related degradation during storage and transit led to faster turnover rates and contributed to a tighter market—impacting both product demand outlook and product production cost trend.
• In May 2025, the Price Index climbed another 2.67% to INR 79,000/MT, driven by rising input and energy costs, which increased tallow oil production cost trends, forcing manufacturers to revise pricing structures.
• Manufacturing remained stable in May, but elevated feedstock costs (animal fats) constrained margin flexibility, discouraging price discounting and keeping spot prices on an upward trajectory.
• Downstream sectors like biodiesel, soaps, and animal feed continued to demonstrate strong demand in May, with buyers replenishing inventories to hedge against expected cost escalation—reinforcing a positive product demand outlook.
• In June 2025, the Price Index surged 3.90%, pushing the spot price to INR 80,000/MT, as industrial production hit a 14-month high, leading to aggressive inventory drawdowns and supply-side tightness.
• Declining CPI (to 2.10%) improved purchasing power in June, sustaining demand from personal care, oleochemical, and export-linked sectors—further tightening availability and reinforcing bullish pricing conditions.
• Export growth in June diverted supply toward Southeast Asia and the Middle East, intensifying competition for limited domestic stocks and lending support to a stronger tallow oil price forecast for early Q3.
• In July 2025, the tallow oil Price Index is likely to rise further due to continued strong offtake from personal care, soap, and oleochemical sectors, coupled with inventory depletion in June, which left thinner stocks across distribution networks.
Europe
• In April 2025, the Tallow Oil Price Index in Germany rose by +0.90% to USD 1120/MT FOB Hamburg, supported by strong US demand driven by a temporary suspension of import tariffs.
• The tallow oil spot price surge was amplified by limited outbound logistics due to holiday-related slowdowns and congestion at ports like Hamburg and Antwerp, tightening regional supply.
• The tallow oil demand outlook strengthened in April as personal care and oleochemical sectors in the US rushed to procure before tariffs potentially resumed.
• In May 2025, the Price Index dropped by -5.71% to USD 1056/MT, reflecting weaker fresh orders and saturated inventories after April’s frontloaded buying spree.
• Despite stable output, oversupply emerged in May as tallow oil production cost trend remained unchanged, but storage built up due to logistical delays and cautious procurement behavior.
• In June 2025, the Price Index rebounded by +2.46% to USD 1082/MT as continued port congestion and low Rhine water levels delayed exports, tightening short-term supply.
• Industrial buyers in June advanced purchases amid rising uncertainty, sustaining demand from sectors like lubricants and specialty oleochemicals without large-volume orders.
• The tallow oil price forecast for July 2025 points to a likely price increase due to robust seasonal demand in food preservation, pulp & paper, and water treatment segments.
• Although German production remains steady, supply chain constraints—especially inland transport bottlenecks—are expected to limit immediate product availability.
• Moderate restocking patterns driven by risk mitigation amid delayed freight will continue to support tallow oil spot price stability heading into July.
MEA
• The Tallow Oil Price Index in the UAE rose by +0.98% in May, after a sharper +5.05% increase in April, before declining -2.20% in June, indicating a Q2 price correction after initial inflationary pressures.
• The tallow oil spot price averaged USD 1135/MT in May, supported by high import costs from India and persistent summer-related storage and transit precautions.
• In April, price escalation was driven by elevated import costs, forward procurement, and rising handling expenses linked to refrigerated shipping methods, directly influencing the UAE’s production cost trend.
• Demand outlook remained robust in April and May from personal care, industrial lubricants, and cleaning sectors amid heatwave-related demand for cooling and hygiene products.
• June witnessed improved import availability and normalized inventory levels, reducing urgency among buyers and triggering price moderation in the local spot market.
• A stable USD-Dirham exchange rate in June cushioned importers from escalating feedstock prices in India, softening UAE landed costs.
• Downstream industries followed cautious restocking strategies in May and routine purchases in June, reflecting evolving tallow oil demand outlook.
• Rising inflation to 2.37% in May added marginal warehousing and distribution costs, shaping the overall price forecast sentiment cautiously.
• While high temperatures encouraged additional logistics precautions in Q2, adequate port operations enabled consistent inbound flows from India.
• In July 2025, prices are likely to increase slightly, as strong seasonal demand from food preservation, pulp & paper, and water treatment sectors globally may elevate import pressure and tighten UAE availability.
For the Quarter Ending March 2025
North America
During Q1 2025, Tallow Oil prices in the U.S. experienced fluctuating trends influenced by supply chain dynamics, import costs, and changing demand. January saw a modest price increase as importers rushed to secure shipments amid anticipated challenges, such as rising energy costs and disruptions in transportation. Tight supply chains, compounded by weather-related delays and logistical constraints, put upward pressure on prices. Additionally, uncertainty in the global market contributed to heightened procurement activity.
In February, Tallow Oil prices declined due to more stable supply conditions. Reduced shipping rates and improved availability from major suppliers helped ease the pressure on prices. However, weak demand from downstream industries, coupled with ample inventories, suppressed any significant price recovery.
By March, prices showed signs of recovery, driven by renewed buying activity and expectations of tighter supply. The firming market sentiment was supported by geopolitical uncertainties and shifts in the oil market, which prompted cautious purchasing ahead of potential supply disruptions. Overall, Q1 demonstrated a volatile but resilient pricing environment shaped by external factors impacting both supply and demand dynamics.
Asia Pacific
In Q1 2025, Tallow oil prices in India witnessed significant fluctuations, largely influenced by market conditions and external factors. January saw a sharp price increase, driven by strong demand from downstream industries like food processing, cosmetics, and bio-lubricants, along with a booming manufacturing sector. The depreciation of the Indian Rupee further boosted export demand, fueling price growth. However, February brought stability to the market, as concerns over a bird flu outbreak in Maharashtra led to more cautious buying. Despite this, demand from industries such as oleochemicals, biofuels, and animal feed remained solid, maintaining price stability. In March, Tallow oil prices rose again due to firm demand across sectors, a tightening domestic supply, and increasing exports, especially to the Middle East. India’s manufacturing activity continued to expand, contributing to higher demand. As exports grew, particularly to the UAE, domestic availability tightened, pushing prices upward. The overall Q1 trend showed a mix of strong industrial demand, export activity, and some external disruptions, leading to fluctuating yet generally upward-moving Tallow oil prices.
Europe
In the first quarter of 2025, Tallow oil prices in Germany displayed a fluctuating trend. January saw a moderate price increase, fueled by improved business morale and heightened demand from the food processing, biofuel, and oleochemical sectors. Inflationary pressures, largely due to rising energy costs, also played a role in this price hike. February experienced price stability, driven by balanced supply and demand, despite a stronger Euro impacting exports. The political uncertainty surrounding February's elections led to a cautious market stance, but steady demand from key industries supported stability. March, however, saw a significant drop in Tallow oil prices. Weak demand, coupled with oversupply across Europe, caused the downward trend. Additionally, global trade uncertainties, particularly new U.S. tariffs on beef tallow, disrupted trade flows, amplifying pressure on German exporters. A stronger Euro further dampened foreign demand, leading to price reductions as suppliers sought to offload inventories. This shift reflected a challenging end to the quarter for the German Tallow oil market.
MEA
In Q1 2025, Tallow Oil prices in the UAE followed a downward trend in January and February, with a notable rebound in March. January saw a modest decline driven by weak global demand from sectors like biofuels, food, cosmetics, and pharmaceuticals. Sluggish downstream activity and easing inflationary pressures led to cautious purchasing, with buyers reducing volumes and deferring procurement in anticipation of further price drops. Ample inventories carried over from December further minimized the need for immediate orders. The stability of the UAE Dirham against the US dollar also helped maintain import costs, contributing to the downward trend.
February continued the decline, supported by the Dirham’s appreciation against the US dollar, which made imports more affordable. Stable prices in India, a key supplier, and weak demand from downstream sectors further pressured prices. Geopolitical uncertainties and oil sector dynamics also dampened market sentiment. However, in March, Tallow Oil prices rebounded with a notable increase. The market shift may reflect changes in sentiment or external factors, suggesting the possibility of price recovery in the near term.
For the Quarter Ending December 2024
North America
In Q4 2024, Tallow oil prices in the USA experienced a consistent decline, driven by economic uncertainty, weakened demand, and shifting market conditions. October’s drop was largely attributed to inflation concerns, reduced consumer confidence, and cautious business behavior amidst potential economic changes.
In November, prices edged lower as demand softened under the weight of inflationary pressures and high interest rates. The resolution of the ILA strike eased logistics. These factors, combined with healthy inventories, helped stabilize supply levels. December saw the continuation of this decline as consumer confidence dropped, demand softened during the holiday season, and rising inflation heightened market caution. Proactive inventory buildup ahead of potential strikes and tariff uncertainties ensured a steady supply, which kept downward pressure on prices. Suppliers lowered prices to remain competitive, contributing to the overall price reduction throughout the quarter.
Overall, Q4 2024 was marked by sustained price declines for Tallow oil in the USA, driven by a combination of cautious market sentiment, economic uncertainties, and favorable supply conditions that allowed suppliers to offer more competitive pricing.
Asia Pacific
In Q4 2024, Tallow oil prices in India followed a fluctuating pattern, driven by a combination of varying supply and demand factors. October saw an uptick in prices, spurred by a surge in export orders from Asia, Europe, and the US, along with strong domestic demand and positive market sentiment. However, rising inflationary pressures, particularly from higher freight, labor, and material costs, forced companies to raise prices to preserve margins. In November, Tallow oil prices began to decline as demand from key sectors, such as biodiesel production, soap manufacturing, and animal feed, weakened. This slowdown was further exacerbated by a reduction in manufacturing activity across India and ongoing inflationary challenges. The downward trend persisted in December, as slower manufacturing growth, diminished global demand, and lower consumption from end-user sectors continued to pressure prices. The easing of cost pressures and reduced inflation in selling prices allowed producers to lower their prices. With inventory clearance at discounted rates and a slowdown in consumer spending, prices continued to soften, culminating in a more subdued market as the quarter came to an end.
Europe
During Q4 2024, Tallow Oil prices in Germany experienced a consistent downward trend driven by a mix of economic and market factors. In October, a soft market environment emerged, fueled by consumer concerns over inflation, lower demand for goods, and a sharp drop in container prices along Asia-Europe shipping routes, which reduced capacity and prompted early shipments. This led to price adjustments by exporters to stay competitive. In November, a moderate decline continued due to subdued demand from the cosmetic and pharmaceutical sectors, coupled with a drop in energy prices, which reduced operational costs and allowed suppliers to pass on savings. Weak consumer spending, particularly in the retail sector, raised concerns about broader economic stability. By December, Tallow Oil prices continued to fall as reduced purchasing activity, buyer hesitancy due to inflation concerns, and logistical disruptions from winter weather slowed market momentum. With ample inventories, suppliers focused on clearing stock, while end-users postponed purchases, contributing to the overall price decline. Overall, the combination of inflation concerns, weak demand, and logistical challenges defined the market in Q4 2024.
MEA
In Q4 2024, Tallow oil prices in the UAE experienced fluctuations driven by a combination of supply-demand dynamics, geopolitical factors, and economic conditions. Early in the quarter, prices rose due to tightening supply and heightened consumer demand, particularly from the food and cosmetics industries. Geopolitical uncertainties, coupled with the need for retailers to expedite shipments to maintain stock levels, further contributed to the price surge. However, by mid-quarter, the market shifted, leading to a price decline. This downturn was primarily driven by oversupply and weak demand from key sectors such as pharmaceuticals and healthcare. An accumulation of inventory, coupled with reduced consumption rates, prompted a correction in pricing as market participants adjusted their procurement strategies. The stability of the UAE dirham against the US dollar helped cushion the market, stabilizing exchange rates and mitigating volatility in international markets. While inflationary concerns persisted, the absence of significant currency fluctuations helped maintain steady import costs, contributing to the downward price trend toward the end of the quarter.
For the Quarter Ending September 2024
APAC
In Q3 2024, the APAC region witnessed a significant surge in Tallow Oil prices, driven by a multitude of factors. Robust demand from both domestic and international markets played a pivotal role in the price escalation. The buoyant economic conditions and resilient manufacturing sectors across the region bolstered sales and export volumes, exerting upward pressure on Tallow Oil prices. Additionally, escalating input costs and logistical challenges further propelled the price hike, with manufacturers passing on these expenses to consumers to safeguard profit margins. The quarter also saw disruptions in supply chains due to unforeseen events including weather disruptions adding strain to the availability of Tallow Oil.
India, experiencing the most substantial price changes, demonstrated a consistent upward trend in Tallow Oil prices throughout Q3. The market displayed positive seasonality, with prices increasing steadily from the beginning to the end of the quarter. This upward trajectory correlated with the overall APAC region trends, reflecting a harmonized pricing environment. As Q3 drew to a close, the latest recorded price for Tallow Oil Ex-Mumbai in India stood at USD 83000/MT, affirming the prevailing bullish sentiment in the market.
Europe
In Q3 2024, the pricing environment for Tallow Oil in the Europe Region remained stable, characterized by consistent market conditions. Key factors influencing market prices included steady demand from various industries, improved consumer purchasing power due to easing inflation, and anticipatory buying ahead of the critical Christmas trading period. Additionally, disruptions in the global maritime traffic caused by ongoing conflicts led to increased shipping costs, impacting prices. In Germany, the market experienced the most significant price changes, with fluctuations influenced by domestic supply constraints stemming from a downturn in the manufacturing sector. Despite these challenges, demand remained high, supported by a favorable economic outlook and increased stockpiling activities. Overall trends indicated a positive correlation between demand and prices, with a 6% increase from the previous quarter. The stability in pricing was evident in the comparison between the first and second half of the quarter, recording a 0% change. The quarter-ending price for Tallow Oil FOB Hamburg in Germany stood at USD 1175/MT, reflecting the overall stable pricing environment. Plant shutdowns were not reported during this quarter.
MEA
Tallow Oil prices in the MEA region remained stable throughout the third quarter of 2024 with the United Arab Emirates experiencing the most significant price fluctuations. Various factors influenced market prices, including stable demand from end-user industries, consistent supply levels, and steady economic conditions. The overall trend in pricing showed resilience and stability, with minimal fluctuations observed throughout the quarter. Seasonality did not have a notable impact on prices, as market conditions remained relatively constant. The correlation in price changes between different countries in the region was consistent, reflecting a harmonized market environment. Despite disruptions such as plant shutdowns, the market maintained its stability. Compared to the same quarter last year, price negotiations remained relatively unchanged, showcasing the market's steadiness. The percentage change from the previous quarter was recorded at 1%, indicating a marginal uptick in prices. The quarter-ending price for Tallow Oil CFR-Jebel Ali in the UAE stood at USD 1195 per MT, underlining the prevailing stability in the pricing environment.
FAQs
1. What caused the steady rise in Tallow Oil prices across North America during Q2 2025?
Tallow Oil prices in the U.S. climbed consistently through Q2, driven by strong industrial demand from sectors like soap, biodiesel, and lubricants. Warmer weather also led to concerns about product stability, prompting buyers to restock early. Tight vessel availability and rising container rates raised logistics costs, which were passed down to buyers, pushing the Price Index upward.
2. How did India’s industrial and economic conditions influence Tallow Oil prices in Q2 2025?
India saw a continuous rise in the Tallow Oil Price Index throughout Q2, supported by robust demand, strong industrial growth, and rising feedstock and energy costs. Supply tightened due to increased exports and faster stock turnover, while lower inflation in June boosted buyer confidence, keeping demand high from both domestic and export-driven sectors.
3. Why did Tallow Oil prices in Europe fall in May but recover in June 2025?
After a price hike in April due to U.S. demand and port slowdowns, Europe saw a dip in May as inventories swelled from frontloaded purchases. However, the Price Index rebounded in June due to logistical issues such as Rhine transport delays and continued congestion at key ports, which limited availability despite steady production.
4. What drove the correction in UAE Tallow Oil prices during June 2025?
Following sharp increases in April and May, UAE prices dipped in June as inventory levels normalized and import availability improved. While summer heat still posed logistical challenges, a stable currency and adequate port operations helped cushion costs. Demand remained steady but restocking slowed, prompting a minor correction in the local spot market.
