For the Quarter Ending September 2022
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.
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.
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
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.
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.
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.
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.
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.
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.