US buying and vegoil price rallies push European animal fat prices up 10% month on month

Buying interest increased for animal fats in Europe for use in pet food, animal feed production and the oleochemical industry, with buyers aiming to substitute vegoil volumes, sources said.

Export potential improved for European fats after the US-based biofuel producers returned to the import market for feedstocks amid a financial advantage and in anticipation of the 2026-2027 Renewable Volume Obligation (RVO) announcement.

After the US Environmental Protection Agency (EPA) released record-high RVOs, local prices for US-origin animal fat jumped, increasing the demand for imported material further.

“Everything happened at once in the commodities markets. Animal fats did not show much reaction to the war, but followed the rally of other products, with sudden buying interest boosting prices,” a Europe-based trader told Fastmarkets.

Overall, 5-15% free fatty acid (FFA) animal fat prices in the FOB Amsterdam, Rotterdam, Antwerp (ARA) market marked a month-on-month increase of over €100 per tonne, or 10%, based on deals reported for April-June loading in the range of €910-1,050 ($1,066-1,230) per tonne FOB.

With demand persisting in the local and export markets, further selling interest for July was reported at €1,100-1,110 per tonne FOB ARA.

“With Brazilian tallow flow to the US now restored, no cargoes are coming to Europe from South America; demand is strong, so no bearish factors for the European market,” a source told Fastmarkets.

Based on market information received, Fastmarkets revised its weekly category 3 mixed animal fat, 15% ffa, 97%, ddp Northwest Europe price assessment at €990 per tonne on Thursday April 23, up by €10 per tonne week on week from €980 per tonne on April 16.

The assessment marked an increase of €85 per tonne, or 9.39%, from March 5, when prices first jumped after a long period of downtrend movement. 

Fastmarkets assessed its weekly category 3 bone fat, 5% ffa, 98%, ddp Northwest Europe price at €1,040 per tonne on Thursday, up by €30 per tonne week on week and by €70 per tonne, or 7.21%, from March 5.

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