Tallow Price Trend and Forecast

Regional Price Overview

Get the latest insights on price movement and trend analysis of Tallow in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Tallow Price Trend for the Second Half of 2023

Asia

The Asian tallow market started on a lower note as the demands were feeble in the summer months. However, steadily, the market started picking up. Since the queries from the international markets also increased, the pricing outlook for the domestic Asian markets inclined. The price trend was able to maintain this trajectory in the fourth quarter as well; India was the biggest tallow exporter to the USA.

Europe

The tallow market trends in the European region were relatively weaker than the global markets. In July the consumption was at record low levels. The inventories were already running high because of subdued downstream movement. However, soon after that, the rush in the global tallow markets started impacting the trade in the European region as well. As the fourth quarter arrived, the demands started surging, and because of limited supply, the upstream costs also picked up. Overall, a fluctuating price trend was observed.

North America

The tallow price trend was mostly mixed with a majorly positively inclined price graph during the said period of H2’23. Since the tallow is extracted from beef, the beef prices largely influence the prices for tallow. During the third quarter, the prices began on a high note despite a fall in inflation in the region, primarily because of supply constraints.

The inventories were repeatedly running out, and because of this high demand, the suppliers were making money. This inclining trajectory continued well into the fourth quarter as well; the market continued to grow. However, it was only in the latter months of the final quarter that the prices finally dipped after the supply and demand disparity started to reduce. The holiday season is also attributed to the decline in demand.

Analyst Insight

According to Procurement Resource, the market projections for Tallow look positive for the coming months since the supply chains are curtailed globally, the prices are expected to surge further.

Tallow Price Trend for the First Half of 2023

Asia

Asian Tallow fat market observed mixed price trend throughout the said period, as the market demands from downstream pharma, cosmetics, and aviation industries were high. The existing stocks were running low, so as the demand exceeded supply, prices rose steadily throughout the first quarter. But the second quarter observed reverse market behaviour as the tallow prices declined. The producers paced up the production, churning products at much faster rates leading to stockpiling of products in the market as the demand turned bearish.

Europe

Following the Asian market trend, Tallow prices in the European region rose steadily till the middle of the second quarter (April). Tallow prices averaged around 1740 USD/MT (CIF) in January in the German domestic market and rose to about 1824 USD/MT (CIF) in April 2023 with an inclination of about 4%. But as the market started getting saturated with excess supplies, prices were set on a declining trajectory from April onwards and regularly plummeted in the last two months of the second quarter.

North America

Tallow prices constantly fluctuated in the American market throughout the said time period. Prices rose regularly in the first quarter because of high demands and then declined during the initial months of Q2 owing to a momentary decline in demands. But the mid-Q2 again witnessed a surge in queries in the American market. As the market is primarily import-dependent for the product, supplies were delayed causing the prices to incline till the end of Q2.

Analyst Insight

According to the Procurement Resource, the prices are expected to continue similar fluctuating patterns given the erratic supply-demand dynamics.

Procurement Resource provides latest prices of Tallow. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.