China Tallow Fatty Acid Prices Tumble 8.8% Despite Seasonal Pre-Lunar New Year Stocking

China Tallow Fatty Acid Prices Tumble 8.8% Despite Seasonal Pre-Lunar New Year Stocking

Anton Chekhov 26-Feb-2026

China’s tallow fatty acid market weakened in January as pre-Lunar New Year slaughter rates and expanded downstream capacity increased supply faster than demand. Higher beef processing boosted feedstock availability for coastal producers, while additional esterification capacity added further supply pressure. At the same time, downstream formulators held comfortable finished-goods inventories following year-end production, leading many buyers to delay February nominations amid softer offers. Producers focused on volume sales, contributing to a looser tallow fatty acid spot market tone. Demand trends were mixed: detergent consumption slowed post-holiday, rubber compounders reduced purchases due to rising inventories, while mid-tier oleochemical and personal-care segments provided moderate seasonal restocking support. Global biofuel demand continued to underpin export volumes. The near-term tallow fatty acid outlook suggests a potential February rebound and March–April improvement, followed by softening before a possible July recovery, depending on demand and operating rates.

Selenis has effectively manufactured recycled PET chips using terephthalic acid sourced from Circ®, a textile-to-textile recycler based in Virginia. The chip production took place through a series of batches at Selenis' pilot plant in San-Giorgio, Italy. By utilizing inputs recovered from polycotton textile waste, Selenis has created high-quality PET chip, which has been further processed into DTY yarn. This yarn will play a crucial role in product development as Circ prepares for additional capsule launches. Selenis is leveraging the success of this initial collaboration phase and is committed to advancing towards an offtake partnership to support Circ's inaugural industrial facility. Eduardo Santos, Head of Corporate Strategy at Selenis, remarked that the monomer synthesis showed a performance comparable to virgin terephthalic acid. He expressed optimism about the consistent quality of Circ's monomer output and anticipated future commercial success. Santos pointed out that the Circ partnership complements Selenis's existing mission and goals for a more sustainable textile industry. He further stated their anticipation of expanding upon this collaboration and providing support for Circ's forthcoming commercial production trials.

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