European fat prices moved lower in the week to Thursday September 12, driven by a continued erosion in demand tied to a negative margin environment for several renewable fuel producers.

Nearby ICE gasoil futures were down by 22% since July 5, which has weighed on renewable fuel prices in the EU market.

The smaller carryover for Dutch renewable fuel tickets (HBEs) into 2025 has also created a selling frenzy, according to sources, which also cut into the renewable fuel producers’ margins.

Low-grade Category 3 bone fat and Cat 3 mixed animal fat both traded sharply lower, with the mixed animal fat market falling to a low of €780 per tonne.

Supply in the EU is picking up, with seasonal slaughter rates increasing a bit earlier than usual this year, which is putting more fat into the market at a time when demand is falling.

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