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.
For the Quarter Ending June 2024
North America
In Q2 2024, the Tallow oil market in North America experienced a notable upward pricing trend, with a slight dip in the middle of the quarter due to various influencing factors. The quarter saw a significant increase in demand, driven by robust consumer spending and retail sales. This heightened consumer activity contributed to the rising demand for Tallow oil. Additionally, geopolitical tensions in the Middle East, specifically Iran's attack on Israel, led to a substantial increase in oil prices across the USA, elevating operational and manufacturing costs for businesses. These higher costs were eventually passed on to consumers, further driving up prices.
A significant disruption came from the collapse of the Key Bridge in Baltimore, which hampered shipping operations and forced container ships to reroute to other ports. In the USA, where price changes were most pronounced, the market maintained a bullish sentiment despite a continued contraction in the manufacturing sector, as indicated by the Manufacturing PMI. Supply-side challenges were notable, with low inventories of Tallow oil due to increased demand from both domestic and international markets, straining the existing supply.
Logistical challenges exacerbated the supply issues, but a mid-quarter decline occurred as international buyers hesitated to place new orders amidst uncertain shipping conditions. This led suppliers to redirect their products toward the domestic market, temporarily increasing supply levels. However, as June began, the supply-demand balance stabilized, reflecting a more balanced market situation by the end of the quarter.
APAC
In Q2 2024, the Tallow Oil market in the APAC region experienced a mixed trajectory with an overall a downward trend in pricing, supported by numerous influential factors. The quarter begin witnessing a upward trend while dropped considerably in the middle and rebound yet again as June commenced. A prevailing robust demand from various industrial sectors, including cosmetics, healthcare, and textiles, significantly influenced the price hike. This period witnessed a synchronized resurgence in global economic activities, propelling international demand and intensifying competition among buyers, thereby pushing prices higher. Additionally, geopolitical instability and logistical hurdles, notably in supply chains, further constrained availability, amplifying the upward pressure on Tallow Oil prices. Focusing on India, which saw the maximum price changes, the overall trends reflected a positive pricing environment. The country's manufacturing sector continued its expansive streak, fueled by resilient domestic demand and improved business sentiments. Seasonal factors, such as increased production activities during favorable weather conditions, bolstered demand further. While in may 2024, the downstream purchasing for Tallow oil was low during this period due to various economic conditions that tempered consumer and industrial consumption. The primary factor was caution among international buyers and reduced domestic consumption. Overseas buyers, uncertain about the economic environment and encountering logistical challenges, were reluctant to initiate new orders. This hesitation was influenced by ongoing shipping crises and broader economic uncertainties affecting global markets. Lastly, the market rebounds considerably as June commenced, demonstrating a significant upward trend. Overall, the correlation between steady industrial consumption and heightened global demand underscored the significant price increases, demonstrating an optimistic market outlook.
Europe
The second quarter of 2024 has seen a notable rise in Tallow Oil prices across the Europe Region, driven by a constellation of influential factors. A robust economic recovery, an upsurge in business activity, and a surge in new orders have underpinned the heightened demand for Tallow Oil, leading to significant price escalation. This quarter witnessed unexpected restocking needs from businesses initially cautious due to economic uncertainties, now reacting to stronger-than-anticipated consumer demand. Furthermore, logistical bottlenecks spurred by adverse weather conditions and service clashes in North European terminals have exacerbated supply chain disruptions, contributing to increased shipping costs. Prolonged complications in the Red Sea, necessitating detours and elongated shipping routes, have further inflated transportation expenses, compounding the upward price momentum. Focusing on Germany, the epicenter of notable price dynamics, the country experienced the maximum price changes within the region. The overall trend depicted an upward trajectory, influenced by steady demand from end-user sectors and inventory restocking efforts. Seasonality played a role as well, with heightened activity in the second half of the quarter compared to the first. This optimism is tempered by ongoing logistical challenges and the need for more efficient supply chain management to sustain the positive pricing environment in the forthcoming periods.
MEA
During Q2 2024, the Tallow Oil market in the MEA region experienced a notable decline in prices with steady upward trend witnessed in the beginning and the last month of the quarter, driven by several critical factors that influenced market dynamics. The quarter was characterized by severe disruptions due to floods, significantly dampening industrial activity and reducing demand. Logistics challenges exacerbated by ongoing geopolitical crises further hindered the smooth flow of supplies, creating a bearish market sentiment. Additionally, currency depreciation across the region led to higher costs for imported goods, prompting buyers to adopt a conservative approach, thereby compounding the downward pressure on prices. In the United Arab Emirates, the impact was particularly pronounced. The decline in business activity due to capacity constraints and natural calamities hindered growth, as reflected in the UAE's Purchasing Managers' Index, which showed stagnation. Overall, throughout Q2 2024, the pricing environment was notably negative, reflecting the complex interplay of diminished demand, logistical hurdles, and economic uncertainties.
