Brazil tallow exports may surpass 2023 record

Spanish Market: Agriculture, Biofuels, Oil products
16/01/24

The increase in US renewable diesel (RD) production capacity may boost Brazilian tallow exports in 2024 and drive prices following the record 246,000 metric tonnes (t) exported in 2023.

The US' RD production capacity has expanded over the last three years to the current 10.75mn t/yr and roughly 4.2mn t/yr will be added by the end of 2024. Marathon Petroleum's 48,000 b/d Martinez plant in California should have come on line with its expanded units by the end of 2023, but a November blaze at the refinery delayed plans, partly contributing to higher inventories of tallow at the turn of the year.

The bleached fancy tallow (BFT) price assessment in the US Gulf coast fell by 21pc to $909/t on 9 January from 28 November. Meanwhile, beef tallow at Brazil's main ports was negotiated from $930-1,050/t fob in the same period, according to an Argus survey. Brazilian tallow's premium over US values has prevented meatpacking plants and rendering plants from closing contracts for February. The market expectation is that tallow demand will strengthen by the end of March, depending on operations at Marathons' 48,000 b/d Martinez plant and P66's Rodeo 52,000 b/d refinery, both in California.

Brazilian tallow shipments continued to head to the US Gulf coast in December, mostly fulfilling deals previously closed in November as price disparity slowed trading in December. Tallow shipments totaled nearly 47,920t in December, a fourfold increase from the approximately 12,815t dispatched in December 2022, according to trade ministry data.

Brazil's 2023 tallow exports peaked in December, while total tallow shipments for the year reached a record 246,250t, a threefold increase from the 81,350t dispatched in 2022. Other Latin American countries, including Argentina, Colombia, and Uruguay, also supply tallow to US biofuel plants.

The meatpacking and animal rendering sector have maintained estimates for stable 2024 production of 1.1mn-1.3mn t in Brazil. Of this total, 35pc is usually directed to biodiesel, with the remainder divided between the hygiene, animal feed and pet food sectors.

The US biodiesel and renewable diesel industry consumed roughly 10.1mn t of feedstocks in 2022, while consumption in the first three quarters of 2023 alone surpassed 2022 levels, at almost 10.5mn t, the US' Energy Information Administration said in December. US tallow consumption in the first 10 months of 2023 was reported at 1.4mn t, surpassing 2022's overall tallow consumption of 898,600t.

US cattle slaughter rates in 2023 were under 2022 levels for every reported month with the exception of January and May, according to US Department of Agriculture's monthly livestock slaughter data.

Bu the USDA expects cattle slaughter in the US slaughterhouses to increase in the first three quarters of 2024, reflecting higher feedlot placements and increased marketings.

Expansion

The increase in RD capacity in North America should lead to higher imports of renewable raw materials this year, not limited to tallow.

Expansions at the Martinez Renewables and Rodeo plants will increase domestic production capacity in the first half of 2024, with ongoing expansion at Chevron REG's 6,000 b/d Geismar, Louisiana plant — which should reach 22,000 b/d by the end of the year — adding more demand in the later half.

The additional 5.3bn l/yr of US capacity that will come onstream in 2024 will generate demand for an additional 5mn t/yr of feedstocks, according to Argus' Renewable Diesel Refinery Database.

Phillips 66 has applied for California Low Carbon Fuel Standard (LCFS) certification at its Rodeo plant for soybean oil from Argentina. In the future, the same could be done with other feedstocks, such as tallow and used cooking oil.

By Alexandre Melo and Jamuna Gautam

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13/11/24

Cop: Six more countries to triple nuclear power by 2050

Baku, 13 November (Argus) — Six countries have pledged to triple their nuclear power capacity by 2050 at the UN Cop 29 climate conference in Baku, Azerbaijan, as part of an initiative launched at last year's summit in Dubai. El Salvador, Kazakhstan, Kenya, Kosovo, Nigeria and Turkey today joined 25 countries that had already signed up to the pledge, which was first announced at Cop 28 in Dubai . Turkey has plans to build 20GW of nuclear capacity by mid-century, from no operational plants currently. Kazakhstan's commitment follows a nationwide referendum last month in which the country voted in favour of constructing a nuclear power plant. The US, an original signatory to the pledge, yesterday announced its target to add 200GW of net new nuclear by 2050, from some 97GW now. White House national climate advisor Ali Zaidi told delegates at a Cop 29 side event today that he has "confidence in the durability" of the Biden administration's approach to clean energy action, and does not expect it to pause following Donald Trump's victory in the recent US election. Zaidi pointed in particular to bipartisan consensus on the country's infrastructure law, which includes support for nuclear power, and growing political consensus on the Inflation Reduction Act. By Victoria Hatherick Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

California RD plant signals later start up

12/11/24

California RD plant signals later start up

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Cop: US election not affecting Canadian policy

12/11/24

Cop: US election not affecting Canadian policy

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Algerian bitumen importers eye resumed Spain flows

12/11/24

Algerian bitumen importers eye resumed Spain flows

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Cop: Negotiators positive on remaining Article 6 talks

12/11/24

Cop: Negotiators positive on remaining Article 6 talks

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