European animal fat prices fall on weak biofuels demand

Prices for European animal fats, a biofuels feedstock, have recently fallen, amid weaker buying interest, mainly because biofuels producers have been delaying their purchases for the first quarter of 2026, sources told Fastmarkets Wednesday October 15

Key takeaways:

  • Category 3 European animal fat prices fell to €940 per tonne on October 9 down €65 from September 18 as many buyers remain covered into 2026 and spot demand stays limited.
  • Q1 volatility persists with prices spiking to €990 per tonne in March while category 1 and 2 shortages kept those grades elevated at €885 per tonne in October.
  • Rising Brazilian inflows after US duties and weaker US feedstock demand add bearish pressure with more EC-certified Brazilian plants expected to increase supply into Europe.

Buyer coverage into 2026 tilts market balance

Fastmarkets price assessment for category 3 mixed animal fat, 15% ffa, 97%, ddp Northwest Europe fell to €940 per tonne on Thursday October 9, down by €65 per tonne from €1,005 per tonne on September 18.

“Most of the major producers are covered for spot [purchases] and are not rushing to conclude any contracts for early 2026, so we have a disbalance, with many sellers but not so many buyers,” a European source told Fastmarkets.

Sources said that demand from other sectors using animal fats – such as for the production of pet foods and animal feed compounds – has been stable, but the volumes procured are nowhere near enough to compensate for the downturn in demand from biofuels producers.

A similar trend was seen last year, when market participants had expected to see a price surge in September and October, which are the months that biofuels producers normally start booking volumes for the following year. But back then, as now, an unexpected lack of demand kept prices on the low side, Fastmarkets understands.

European animal fat prices: Seasonal patterns and Q1 volatility

This year, prices pushed up in February and March when a large number of market participants returned to the spot market.

“A similar situation might happen this year too,” a European animal fats producer source told Fastmarkets. 

“But such volatility is not really good for us. We prefer stable prices,” the source added.

On October 9, 2024, the Fastmarkets’ assessed the category 3 mixed animal fat, 15% ffa, 97%, ddp Northwest Europe price at €940 per tonne, up by €125 per tonne from €815 per tonne on October 10, 2024.

After the demand spike in the first quarter of 2025, the price reached a near two-year high of €990 per tonne on March 13, a level previously seen in March 2023.

Shortages of category 1 and 2 material kept prices elevated, meanwhile, with Fastmarkets’ price assessment for category 1 and 2 mixed animal fat, max 30% ffa, ddp Northwest Europe rising to €885 per tonne on October 9, a €35 per tonne month-on-month increase from €850 per tonne on September 11.

European animal fat prices pressured by Brazilian inflows and US policy

Other bearish factors for European animal fat prices included weaker demand for imported feedstocks in the US and heavier flows from South America, and Brazil in particular, sources told Fastmarkets.

After the US imposed a 50-55% import duty on Brazilian animal fats, tallow exporters in Brazil turned to alternative destinations, with Europe one of the main targets and, despite complicated paperwork and certification requirements, more volumes of Brazilian tallow were recently being traded in Europe, sources said.

To be able to enter the European market, Brazilian rendering facilities needs to hold necessary approvals and certification by the European Commission, All goods must be categorized and accompanied by veterinary certification, Fastmarkets understands.

“Even though it takes time to get EC approval, I’ve noticed that more than 10 [Brazilian] plants have been certified since the tariffs were imposed – that’s quite quick,” a European trader source told Fastmarkets. “So, we should be expecting more inflows from South America soon, which some European market participants will take as a bearish [signal].”

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