Australian renderers have awarded their tallow tenders for October delivery to ports along the east coast at lower price levels compared to the previous month.
Tenders for tallow with a maximum of 2pc free fatty acids (FFA) were awarded between A$1,320-1,350/t ($904-$924) dap for October supplies, down from around A$1,400/t in September.
Argus assessed Australian east coast tallow between $939-960/t (A$1,370-1,400/t) on a fob basis.
Australian renderers mostly offer their tallow in monthly tenders for delivery throughout the following month to shore tanks at Brisbane and Melbourne ports, with tenders awarded during the last week of each month.
Buyers in Singapore and the US primarily import Australian tallow for use as a feedstock for biofuels production.
The lower Australian tallow values are because of weaker tallow prices in the US Gulf, which have fallen by over $100/t from a peak in July, market participants said. Argus last assessed maximum 4pc FFA bleached fancy tallow delivered to the US Gulf coast at $1,009/t on 3 October.
Australian tallow prices are also a function of international traders' logistics costs and vessel availability. Traders bid at elevated levels for September tenders because they had vessels on the way to Australia to collect volumes accumulated throughout the month.
US renewable feedstock usage hovered close to all-time high levels in July. Tallow was the most-used waste feedstock for biofuel production in July, reaching 9,752 t/d, representing a year-on-year of 81.3pc.
