For the Quarter Ending March 2024
North America
During Q1 2024, the pricing dynamics of Tallow oil in the North America region, particularly in the USA, were shaped by a blend of factors. Initially, prices witnessed a notable decrease, driven by weakened demand from downstream industries and ample supply in the market. This decline in demand was further exacerbated by the effects of inflation and the Federal Reserve's decision to maintain steady rates.
However, prices surged in the middle of the quarter due to an increase in demand from downstream industries, intensifying the already tight supply conditions prevalent in the domestic market. Additionally, disruptions in key maritime routes, such as the Red Sea and Panama Canal, posed challenges for shippers importing Tallow oil into the US, further exacerbating supply constraints. Nevertheless, prices experienced a significant decline again in March due to a downturn in business sentiments, casting uncertainty over the economy. This lack of confidence translated into subdued demand from end-user cosmetics, pharmaceutical and healthcare industries, leading to a downward trajectory in Tallow oil prices.
In conclusion, the pricing of Tallow oil in the North America region during Q1 2024 was influenced by a combination of demand patterns, consumer sentiment, and inventory management strategies.
Asia Pacific
The pricing dynamics of Tallow Oil in the APAC region during Q1 2024 have been influenced by various factors. Overall, the market has experienced a mix of positive and negative trends, with some countries seeing significant price changes. In India, Tallow Oil prices have fluctuated throughout the quarter. In January, prices decreased by 1.76% compared to the previous month. This decline was driven by reduced demand from major end-user industries such as cosmetics, healthcare, and textiles. The slowdown in India's manufacturing sector also contributed to the decline, with domestic sales and international orders experiencing a downturn. Additionally, the appreciation of the Indian rupee against the US dollar added to the downward pressure on prices, leading to an accumulation of surplus Tallow Oil inventories in the domestic market. However, in February, prices rebounded with a 2.46% increase compared to January. This increase was driven by a resurgence in demand from downstream sectors, improved trading activities, and a positive market outlook. The market sentiment improved, leading to a more optimistic buying attitude among market participants. In March, prices continued to rise due to steady demand from domestic and international markets, sustained international demand, and an uptick in new inquiries are expected to contribute to the price increase. The overall market sentiment remains bullish. Overall, the pricing environment for Tallow Oil in India during Q1 2024 has been unstable, with fluctuations driven by changes in demand, manufacturing activity, and currency exchange rates. The market has experienced both positive and negative trends, with the latest quarter-ending price recorded at USD 941/MT of Tallow Oil Ex-Mumbai in India.
Europe
Tallow Oil prices in the European region experienced a mixed quarter in Q1 2024. The market was influenced by various factors that led to fluctuations in prices. Overall, the pricing environment can be described as unstable, with both positive and negative trends observed. In Germany, which saw the most significant price changes, Tallow Oil prices fluctuated throughout the quarter. The market started with a decrease in January, driven by reduced demand from the food, cosmetics, and personal care sectors. The manufacturing industry also contracted, leading to a decline in production and new orders. Additionally, the appreciation of the Euro against the USD and the conflict in the Red Sea hindered exports and resulted in an oversupply of Tallow Oil in the German market. However, the market rebounded in February with a significant surge in prices. This was fueled by increasing demand from pharmaceuticals, cosmetics, and aviation sectors, coupled with dwindling stock levels. The depreciation of the Euro against the USD also contributed to the price escalation, making exports more cost-effective and driving up foreign demand. In March, Tallow Oil prices declined again, due to lackluster performance in new industrial orders, resulting from subdued domestic demand juxtaposed against a relatively adequate backlog. Furthermore, sluggish demand persisted in key end-user sectors like cosmetics, healthcare, biofuel, and textiles, further exacerbating the overall downturn in the market. Overall, the pricing environment for Tallow Oil in the European region in Q1 2024 can be characterized as unstable, with price fluctuations influenced by factors such as demand, supply, currency fluctuation, and market sentiment. The latest quarter-ending price for Tallow Oil FOB Hamburg in Germany was USD 1130/MT.
MEA
The pricing environment for Tallow Oil in the MEA region during Q1 2024 has been volatile, influenced by various factors. Overall, there has been a mixed trend in prices, with some countries experiencing significant fluctuations. However, the United Arab Emirates (UAE) stands out as it has witnessed the maximum price changes. In the UAE, Tallow Oil prices started the quarter at USD 1120/MT in January, experiencing a decline of -2.61% from the previous month. This decrease can be attributed to a decrease in inquiries from downstream industries and a decline in consumer spending. The depreciation of the Dirham against the US dollar also contributed to the decline in prices, as it increased the cost of imports for buyers in the UAE. However, in February, Tallow Oil prices in the UAE saw a significant rise, reaching USD 1190/MT. This increase was driven by increased demand from sectors like cosmetics, healthcare, and pharmaceuticals, along with low stockpiles among merchants. Disruptions in trade from exporting nations and fluctuations in currency further fueled this surge. In March, prices continued to rise due to growing demand from end-user industries, and increased orders from international markets are expected to drive this upward trend. Overall, the pricing environment for Tallow Oil in the UAE during Q1 2024 has been positive, with prices experiencing fluctuations due to various factors. The quarter-ending price of Tallow Oil CFR-Jebel Ali in the UAE was recorded at USD 1200/MT.
For the Quarter Ending December 2023
North America
In the last quarter of 2023, the pricing dynamics of the USA Tallow Oil market were influenced by various factors. These factors, including inflation, interest rates, and geopolitical tensions, played pivotal roles in shaping the market conditions. Initially, prices saw an increase in October and November due to consistent market demand but experienced a decline in December amid weakened market sentiments.
The uptick in Tallow oil prices was initially attributed to heightened consumer spending. Despite facing higher interest rates, consumers demonstrated a willingness to spend, especially during significant shopping events like Cyber Monday and Black Friday. This increased consumer activity led to an overall surge in demand in the USA market, subsequently causing a rise in Tallow oil prices. Additionally, with signs of inflation alleviation, enhanced consumer confidence and spending resulted in increased overall demand for Tallow oil.
Although, prices declined towards the end of Q4 due to reduced demand from downstream industries and an abundant supply in the market. The resurgence of inflation in the USA, resulting in higher living expenses, prompted consumers to adopt more cautious spending habits, impacting the overall demand for Tallow oil and contributing to a downward price trend. Faced with excess supply and potential reduced demand, manufacturers and distributors responded by offering discounted quotes to clear surplus inventory, particularly towards the year's end.
MEA
In the fourth quarter of 2023, the Tallow Oil market in the MEA region experienced several key factors that impacted prices. Firstly, there was a moderate supply of tallow oil in the market due to subdued trading activities and increased consumption from end-consumers. This scarcity of supply led to an increase in prices throughout the quarter. Secondly, there was sustained demand in the market, driven by a significant rise in new order inquiries. This consistent demand further contributed to the upward movement in prices. Lastly, the United Arab Emirates witnessed the most significant changes in tallow oil prices during this quarter. During the fourth quarter of 2023, the price of Tallow Oil CFR-Jebel Ali in the United Arab Emirates was USD 1150/MT, representing the quarter-ending price. This price reflects a -1% change compared to the previous quarter and a 0% change compared to the same quarter in the previous year. Additionally, there was a -2% price difference between the first and second half of the quarter in the UAE. These price fluctuations were primarily influenced by the supply-demand dynamics and the overall market conditions in the region. Overall, the Tallow Oil market in the MEA region during the fourth quarter of 2023 was characterized by moderate supply, sustained demand, and price fluctuations in the United Arab Emirates.
APAC
The Tallow Oil market in the APAC region during the current quarter of 2023 (Q4) has been characterized by several key factors. Firstly, there has been a consistent demand for Tallow Oil from end-user sectors such as cosmetics and pharmaceuticals, which has contributed to the overall growth of the market. Additionally, limited supplies of Tallow Oil in the domestic market have further pushed up prices. Furthermore, the ongoing inflation in the Indian market has acted as a deterrent against substantial price hikes in Tallow Oil prices. In terms of India, which has experienced the most significant changes in Tallow Oil prices, the market has seen a moderate improvement in November. This can be attributed to a consistent demand from end-user sectors and limited supplies in the domestic market. The manufacturing sector in India has also shown enhancements, driven by increased output and new orders. However, the ongoing inflation in the market has restrained consumer spending, preventing significant price hikes in Tallow Oil prices. In terms of pricing trends, the prices of Tallow Oil in India are increased in October and November, driven by surging demand from the domestic market and the need to replenish inventories. However, prices are declined in December due to sluggish demand from end-sectors and the focus on destocking old inventories. In summary, the Tallow Oil market in the APAC region during the current quarter has been influenced by factors such as consistent demand, limited supplies, and inflationary pressures. The latest price of Tallow Oil in India for the current quarter is USD 918/MT.
Europe
In the final quarter of 2023, the European Tallow Oil market witnessed a range of factors impacting its pricing dynamics. October and November saw an upswing in Tallow oil prices, attributed to heightened demand from the cosmetics and healthcare sectors, increased consumer expenditures, and a reduction in market inventories. A positive shift in business sentiment in Germany indicated an alleviation of factors impeding economic growth, such as high inflation, positively influencing consumer sentiments and contributing to the price surge. However, come December, Tallow oil prices experienced a downturn. This reversal was attributed to consumer apprehension and diminished purchasing power resulting from the resurgence of inflationary pressure. This, in turn, led to a surplus of supply in the market, exerting downward pressure on prices. Moreover, the manufacturing sector in Europe, particularly in Germany, continued to contract, resulting in decreased demand for Tallow Oil. The persistent decline in new orders and factory productivity contributed to the overall weakness in demand. Lastly, the European Central Bank's efforts to curb inflation through interest rate hikes further impacted the market, as higher interest rates reduced market demand. The price of Tallow Oil in Germany for the current quarter is USD 1252/MT FOB Hamburg.
For the Quarter Ending September 2023
North America
The prices of Tallow oil displayed a diverse and fluctuating pattern within the USA market during the third quarter. Prices decreased in July as a result of a decline in sales and queries for new orders from end-user industries. The most current government data on inflation show that consumer prices rose 3.2% in July over June. The increase followed a 3% annual growth rate in June, which was the lowest rate in more than two years. The Federal Reserve raised its benchmark rate 11 times in July by 25 basis points to curb inflation, which kept overall market demand on the lower side. However, prices for Tallow oil surged in August because of shortage of supply amid rising demand from end-users. Additionally, the market for Tallow oil has been influenced by disruptions in the global supply chain and high oil prices, which have both contributed to the upward trend in price. Tallow oil prices fell in September as a result of new orders declining for the sixth month in a row, albeit at a mild rate. Consumers were put under more stress at this time due to significant inflation, which was mostly caused by rising gas and rental prices.
Asia Pacific
Tallow oil prices showed a mixed pattern in the third quarter. Prices fell 3.18% in July but rose 1.05% and 0.59% in August and September, respectively. Tallow oil prices fell in July as a result of a combination of high stockpiles held by producers and traders and weak market demand. The continued high rate of inflation also kept consumer confidence on the lower side. The manufacturing PMI in India rose to 58.6 in August from 57.7 in July, above market forecasts and showing a rise in industrial activity. It suggests that industrial growth is at its quickest in three months and that new orders and production are rising at the greatest rates in nearly three years. Additionally, export sales increased at their fastest rate in nine months as a result of the strong demand from countries like China and the US. In September, India's factory activity expanded at a moderate pace, the weakest in five months. This rise, however, remains robust, owing to increasing demand, which has greatly boosted corporate confidence that it would reach its apex this year. Despite rising inflationary pressures, stable domestic demand, along with growing overseas sales, has contributed to rise in Tallow oil prices.
Europe
Tallow oil prices fell by 3.59% in the third quarter in July. The manufacturing purchasing managers' index (PMI) in Germany fell to 41 in July from 42 the previous month, the lowest level in 38 months. Manufacturing sector fall increased in July, as goods makers witnessed a greater drop in new orders and factory gate prices, as well as output and input costs. However, Tallow oil prices grew by 2.48% in August due to increased demand from the food, cosmetic, and pharmaceutical industries, as well as a lack of supply in the market. In Germany, industrial production activity decreased, resulting in lower stock levels among market makers and merchants, leading to an increase in Tallow oil prices. Furthermore, in August, the German Euro weakened against the US dollar, resulting in cheaper exports and increased demand from the overseas market, putting upward pressure on Tallow oil prices. However, prices fell by 1.61% in September due to a recent spike in more economical biofuel exports from China, resulting in a significant drop in biodiesel costs within the European Union. This has resulted in a decline in demand for Tallow oil in the German market, resulting in a considerable drop in its prices.
For the Quarter Ending June 2023
North America
In the United States, the market situation for tallow oil remained mixed in the third quarter. The prices surged in May but reduced in June. India is the main exporter of tallow oil in the US. The export of tallow oil in the US declined, which decreased the supply in the US market amid higher demand from end-user industries, the pushed the prices upward. The production cost of tallow oil also increased in May, which further supported the increased prices of tallow oil. Furthermore, the prices of tallow oil decremented in June because of higher interest rates imposed by the Federal Reserve to combat inflation, which subsequently decreased the demand for tallow oil in the US market. But the US import prices declined in June compared to May, increasing the tallow oil availability in the US market and adding downward pressure on prices. Market suppliers and traders have focused on the destocking process to clear their stockpiles and reduce prices in order to maintain profit margins.
Asia Pacific
The prices of tallow oil in India demonstrated a mixed trend in the second quarter. The prices increased significantly by 9.33% in May from April and declined by 4.27% in June in comparison to May. The manufacturing PMI (Purchasing Managers' Index) increased to 58.7 in May from 57.2 in April. Indian manufacturers scaled up production volumes as a result of growing new orders and favorable market conditions. Moreover, the increase in production costs has also resulted in an increase in Tallow Oil prices for the customers. Also, the supply-chain conditions improved, causing a surge in consumer demand from the downstream sectors, supporting the upward trend of prices in May. In June, the Tallow oil market was consistently dull as prices went down steadily because the supply of Tallow Oil was higher compared to its demand. Moreover, India's trade activity remained bearish in June, resulting in higher stockpiling of tallow oil with the domestic merchants and traders, further putting downward pressure on prices.
Europe
In Germany, the prices of tallow oil remained on the weaker side in the second quarter. A significant decrement of 13.45% is observed in June from April because of increased availably of tallow oil amid decreased demand from end-user industries. Moreover, decreased inquiries from foreign markets additionally supported the downward price trend for Tallow Oil for this quarter. The purchasing managers' index (PMI) in the manufacturing sector dropped to 41 in June from 43.2 in the previous month. This indicates a contraction of the manufacturing sector with a decline in production activity. Production fell due to lower demand from the rubber and plastic industries. New orders started falling from very high levels, contributing to a drop in demand. German exports remain sluggish. Supply chain conflicts, a more fragmented global economy, and China's growing ability to manufacture goods that were previously purchased from Germany are all factors weighing on German exports. This increased the supply of tallow oil in the German domestic market, putting downward pressure on prices.
For the Quarter Ending March 2023
North America
The first quarter's disruption in the global supply chain caused fluctuations in the price of Tallow Oil in North America. The first half of the quarter saw little improvement in the demand from downstream industries, particularly the building and construction, and automotive sectors. In addition to being used to produce soap, animal feed, and biodiesel, the rendered animal fat known as Tallow Oil, which is often produced from mutton or beef, is also utilized for these purposes. In addition, prices for U.S. Tallow Oil exports plunged towards the end of Q1 as demand from foreign markets plummeted throughout the time period under consideration. The conflict between Russia and Ukraine also caused production cuts and other restrictions on Russian oil, which increased the price of Tallow Oil globally and created a volatile market trend for Tallow Oil.
APAC
Prices of Tallow Oil fluctuated across Asia in the first Quarter of 2023, adjusting export demand to the shifting environment. Prices increased as a result of the supply shortage brought on by the fact that demand exceeded supply, and stocks shrank in the first half of the quarter. Tallow Oil prices rose as a result of rising demand from upstream industries, including the pharmaceutical and automotive industries. In contrast, the Indian market likewise observed a downward pricing trend, which was backed up by mixed product reviews from customers during the second month of the quarter. At the start and the end of the fourth quarter, there was an instability in export demand, together with a supply shortage and progressively decreasing freight prices. Towards the end of Q1 2023, the price of Tallow Oil was recorded to be USD 854.20/MT for Ex-Mumbai India in March 2023.
Europe
The price of Tallow Oil in the European market matched the first quarter's erratic market behavior. Along with the global unstable market dynamics in crude oil prices, Tallow Oil prices also fluctuated in European countries. Due to the simplicity of the Russian invasion of Ukraine and the region's openness, the price of crude oil and the demand for biofuels worldwide stabilized. On the other hand, domestic Tallow Oil prices fell in the first and last months of Q1 as a result of a drop in downstream demand from the pharmaceutical and automobile industries. However, the prices increased during the second month of the quarter. The price trajectory and market sentiment both shifted less favorably than they had the previous quarter at the end of Q1 of 2023.
For the Quarter Ending December 2022
North America
In North America, Tallow Oil prices fluctuated due to the disturbance in the world's supply chain during the fourth quarter of 2022. The demand from downstream industries, particularly the building, construction, and automotive sectors, remained weak during the first half of the quarter. The rendered animal fat known as tallow, which is commonly generated from mutton or beef, is also used to make soap, animal feed, and biodiesel, among other things. Additionally, prices for US tallow exports fell precipitously at the conclusion of Q4 as demand from overseas markets declined throughout the time under examination. Additionally, due to production reductions and other constraints on Russian oil, the conflict between Russia and Ukraine boosted the price of Tallow Oil globally, producing a volatile market trend for Tallow Oil. Towards the end of Q4 2022, the price of Tallow Oil was recorded to be USD /MT for CFR in the USA in December 2022.
APAC
Prices of Tallow Oil increased across Asia in the fourth Quarter of 2022, adjusting export demand to the shifting environment. Prices increased as a result of the supply shortage brought on by the fact that demand exceeded supply, and stocks shrank in the first half of the quarter. Pressure increased because the manufacturing industry's production was halted by the COVID-19 limitations. Tallow Oil prices rose as a result of rising demand from upstream industries, including the pharmaceutical and automotive industries. In contrast, the Indian market likewise observed an upward pricing trend, which was backed up by mixed product reviews from customers. At the start and the end of the fourth quarter, there was an increase in export demand, together with a supply shortage and progressively rising freight prices. Towards the end of Q4 2022, the price of Tallow Oil was recorded to be USD 952.17/MT for Ex-Mumbai India in December 2022.
Europe
In the Europe market, the fourth quarter's decreasing market pattern in North America was mirrored in the price of Tallow Oil. The cost of Tallow Oil fell in European nations together with the price of crude oil globally. The price of crude oil and the demand for biofuels worldwide stabilized due to the ease of the Russian invasion of Ukraine and the openness of the Black Sea Region. In contrast, domestic Tallow Oil prices decreased in Q4's first and final months due to a decline in downstream demand from the pharmaceutical and automotive sectors. At the end of Q4, the price trajectory and market mood both changed less favorably than they had in Q3. Towards the end of Q4 2022, the price of Tallow Oil was recorded to be USD 1670/MT for FOB Hamburg, Germany, in December 2022.
For the Quarter Ending September 2022
North America
In North America, Tallow Oil prices fluctuated due to the disturbance in the world's supply chain during the third Quarter of 2022. During the first half of the Quarter, demand from downstream industries, especially the building construction and automotive sectors, remained poor. Additionally, Tallow is a rendered kind of animal fat, typically made from mutton or beef, and it has several uses, including making biodiesel for fuel and making soap and animal feed. In addition, since demand from foreign markets decreased throughout the time under consideration, prices for U.S. tallow exports plummeted at the end of Q3. Additionally, the conflict between Russia and Ukraine increased Tallow oil prices globally due to production cuts and various restrictions on Russian oil, creating a volatile market trend for tallow oil. Towards the end of Q3 2022, the price of Tallow Oil was recorded to be USD 1790/M.T. for CFR in the USA in September 2022.
APAC
Prices of tallow oil changed across Asia in the third Quarter of 2022, adjusting export demand to the shifting environment. Due to the supply shortfall caused by the fact that demand outweighed supply and stockpiles shrank in the first half of the Quarter, prices rose. The COVID-19 limits caused a stoppage in manufacturing industrial production, which raised the pressure. The increased demand from downstream businesses, including the pharmaceutical and automotive sectors, contributed to an increase in tallow oil prices as well. In contrast, the Indian market also noticed price trend fluctuations, which were supported by ambivalent consumer opinions of the product. The export demand increased at the beginning and the end of the third Quarter of 2022, combined with a supply shortage and steadily rising freight costs. Towards the end of Q3 2022, the price of Tallow Oil was recorded to be USD 1070/M.T. for Ex-Mumbai India in September 2022.
Europe
In the Europe market, the third Quarter's fluctuating market pattern in North America was mirrored in the price of Tallow Oil. Tallow oil prices in European countries increased along with the price of crude oil globally. Due to the Russian invasion of Ukraine, the price of crude oil increased along with the demand for biofuels on a global scale. In comparison, domestic Tallow Oil prices fell during the first and last months of Q3 because of weaker downstream demand from the automobile and pharmaceutical industries. When compared to Q2, the price trajectory and market sentiment both declined at the end of Q3. Towards the end of Q3 2022, the price of Tallow Oil was recorded to be USD 1810/M.T. for FOB Hamburg in September 2022.
For the Quarter Ending June 2022
North America
In North America, Tallow Oil prices fluctuated throughout the second quarter, owing to the global supply disruption. The demand from downstream industries, namely automotive, construction, and building industries, remained weak during the first half of the quarter. In addition, Tallow is a rendered form of animal fat, commonly mutton or beef, which finds its wide applications in cooking, fuel (in the manufacturing of biodiesel), soaps manufacturing, animal feed, etc. At the same time, U.S. tallow exports demand fell during the considered period, as demand from overseas markets declined, lowering prices towards the end of Q2. Furthermore, the war between Russia -Ukraine escalated the global oil prices because of production cuts and several impositions on Russian Oil, leading to see-sawing market trend for Tallow Oil.
APAC
Tallow oil prices fluctuated in Asia in the second Quarter of 2022, following the changing atmosphere in export demand. Prices increased in the first half of the quarter due to the supply shortage as demand exceeded supply and stockpiles shrank. Manufacturing industry production was halted as a result of the COVID-19 restrictions, which increased the pressure. Tallow oil prices also grew as a result of rising demand from downstream industries like the pharmaceutical and automobile sectors. In contrast, the Indian market too observed fluctuation in its price trend, backed by the mixed market sentiment for the product. During the start and end month of the Q2, the export demand rose, alongside a supply crunch and resolutely freight cost.
Europe
In the Europe market, Tallow Oil prices mirrored the North American market trend, which oscillated throughout the second quarter. As crude oil prices rose throughout the globe, so did the cost of tallow oil in European nations in the month of May. The Russian invasion of Ukraine resulted in rising crude oil prices and the global demand for biofuels. While during the first and last month of Q2, Prices of tallow Oil in the domestic markets decreased due to lowering downstream demand from the automotive and pharma sector. When compared to Q1, the price trajectory lowered at the conclusion of Q2 along with the dull market sentiment.
For the Quarter Ending March 2022
North America
In the first quarter of 2022, the prices of tallow oil increased significantly. The prices were increased with the resurgence of the pandemic. The imposition of lockdown took a massive hit on the global oil demand because of a cut in production rate and route disruption, over and above rapidly escalating geopolitical tension between world power, mainly US and Russia, the largest and the third-largest oil producers affecting the crude oil prices to increase drastically owing to disrupting tallow oil market supply chain. The demand from downstream industries, namely automotive, construction, and building industries, also escalated, raising the prices of tallow oil in the first quarter of 2022.
Asia-Pacific
In the first quarter of 2022, the tallow oil prices accelerated with an increase in demand following the price trajectory of exporting countries. Being the importer of tallow oil from the US and UK, the major crude oil-producing countries will influence the prices of tallow oil in the Asian market. As the demand outpaced the supply with shrunken inventories, the prices accelerated owing to the supply crunch. The geopolitical tension also added to the pressure with a production halt in manufacturing industries. Also, increased demand from the downstream industries like the automotive and pharmaceutical industries hiked up the tallow oil prices.
Europe
In the first quarter of 2022, the prices of tallow oil experienced considerable increment. As the crude oil prices increased globally, it equally affected the prices of tallow oil in European countries. With the Russian Ukraine invasion, crude oil prices increased with increasing demand in the biofuel industry globally. Downstream industrial demand with increasing awareness also prompted accelerated prices in regional and domestic markets. As the pandemic resurfaced, it potentially impacted the market due to increased freight charges, logistic issues, etc. Toward the end of Q1, the price trajectory accelerated with a strong market sentiment when compared with Q4 2021.
