For the Quarter Ending March 2022
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.