US tariffs hit Brazil rosin ester sales for 1Q 2026

Spanish Market: Chemicals
17/12/25

Brazilian rosin ester sellers are losing first-quarter 2026 orders as US buyers avoid imports facing 50pc tariffs.

Talks to ease duties have progressed, but US customers have already secured early-2026 volumes elsewhere, limiting Brazil's near-term sales. Even if tariffs fall soon, shipments would not reach the US in time for first-quarter delivery, sellers said.

The US is a key market for gum rosin and rosin esters used in road marking and hot melt adhesives. Shutdowns at crude tall oil (CTO) refineries in DeRidder, Louisiana, and Crossett, Arkansas, cut 300,000 t/yr of US tall oil refining capacity. The closures sharply reduced domestic tall oil rosin (TOR) and TOR ester output, creating an opportunity for Brazilian product to fill the gap.

Global Trade Tracker (GTT) data show Brazilian gum rosin exports to the US hit a record high of 4,602t in 2024, supported by the CTO refinery shutdowns. But exports have fallen sharply since then, totalling just 1,551t in January-November this year.

Gum rosin can substitute for TOR in some applications, and both feedstocks are upgraded into rosin esters. But tariffs have kept US buyers reliant on domestic TOR ester and alternative tackifiers for adhesives and road marking. Southern European rosin esters are gradually entering the US market to cover some of the drop in Brazilian sales, sellers and buyers said.

Midpoint European CTO prices fell by 18.7pc on the year to €650/t ex-mill in the fourth quarter of 2025. In contrast, Brazilian pine oleoresin prices rose by 13.8pc to 5,150 reals/t (€804/t) at the forest on 15 December from a year earlier. Pine oleoresin and CTO are feedstocks for gum rosin and TOR production, respectively, which are then upgraded into rosin esters.

European derivative producers use both Brazilian gum rosin and local TOR for rosin ester output. Lost first-quarter sales and tariffs will likely curb second-quarter volumes next year, Brazilian suppliers said.

Larger Brazilian sellers saw double-digit growth in the first half of 2024 compared with the same period in 2023, but orders for the first half of 2026 are at risk because of missed US sales in the opening quarter.

By Leonardo Siqueira

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15/12/25

Viewpoint: Indonesian waste oil supply to fall in 2026

Singapore, 15 December (Argus) — Indonesia's implementation of a 50pc biodiesel (B50) blend mandate and ongoing palm plantation seizures may raise palm oil prices and reduce global waste oil supply, likely keeping palm oil mill effluent (Pome) oil prices supported in 2026. The country raised its biodiesel blend target by 5pc to 40pc starting from February 2025 and is targeting another 10pc increase to 50pc by the second half of 2026 . The higher blending mandate would lower total palm oil exports by about 11-12pc in 2026 compared with 2024 and 2025, Indonesian agriculture ministry official Baginda Siagan said at the 21st Indonesian palm oil conference (IPOC2025) in November. This would likely support an increase in crude palm oil (CPO) prices, industry analysts said. Prices of CPO and palm-based waste oil like Pome oil are linked because market participants historically priced Pome oil at a set discount to CPO values, and they are both feedstocks for biofuel production. But waste oil export values have mostly been at a premium to CPO this year due to Indonesia's move to suspend exports of unprocessed Pome oil and used cooking oil (UCO) since 8 January , tightening the global supply of waste oils. Indonesia has yet to resume issuing export permits. The restrictions have since driven exporters to explore refining Pome oil for exports. Refined Pome oil exports totalled 440,000t in January-November, according to Kpler data. No refined Pome oil was shipped in 2024 prior to the export pause because exporters directly shipped unrefined material. Refined Pome oil has lower metals and impurities than unprocessed material and can be used for hydrotreating to produce hydrotreated vegetable oil or hydroprocessed esters and fatty acids synthetic paraffinic kerosene (HEFA-SPK) with less processing than crude Pome oil. Argus launched the refined Pome oil fob Indonesia assessment on 15 October to reflect the value in this emerging export market, and it has since been priced above rival regional biofuels feedstock assessments. Indonesia's export pause was a key factor driving up waste oil prices in the region to three-year highs in September ( see chart ). The duration of Indonesia's ban on crude Pome oil and UCO exports remains uncertain, but the government may be tempted to maintain restrictions to keep more feedstocks available to expand domestic biofuels production. This would continue to limit seaborne supply and support prices on a fob basis. Speaking at IPOC2025, Indonesia's palm plantation fund (BPDP) head suggested exploring alternative waste feedstocks such as UCO for use in the B50 programme to reduce Indonesia's reliance on CPO as biodiesel feedstock. State-owned Pertamina is already trialling sustainable aviation fuel (SAF) production through co-processing UCO at its Cilacap refinery since the second quarter of 2025, and shipped about 32,000 litres of UCO-based HEFA-SPK in its first shipment in August . The country is targeting the production of 1mn kilolitres/yr SAF by 2030 . Plantation seizures may squeeze CPO output Palm oil production in Indonesia may be squeezed by the government's ongoing efforts to reclaim plantation lands it said were illegally acquired this year. The Indonesian government in January formed a forestry task force for this purpose and reclaimed over 3.3mn hectares of plantation land by August, according to its website. The land will be transferred to and managed by state-owned Agrinas Palma Nusantara, which was set up in February to oversee the confiscated land. Agrinas has been recruiting staff to operate its plantation business but the availability of harvesters still poses a challenge, it said in a press release on 1 December. Many in the sector expect the change in land management to reduce plantation efficiency starting in 2026. But the extent of yield and production losses caused by the land seizures remains uncertain, said industry analyst Thomas Mielke at IPOC2025. He estimated palm oil output in the country may decline to 49mn t in 2026 from 49.4mn t in 2025. Ministry officials at IPOC2025 did not comment on the ongoing palm plantation seizures. The collection and export of Pome oil from mills may also fall on the back of fewer fresh fruit bunches harvested from oil palm plantations due to the land seizures. Less CPO available for processing into palm olein for domestic cooking oil could also cause UCO supply to shrink. Traceability concerns continue to threaten demand Meanwhile, concerns surrounding Pome oil traceability have continued among European buyers this year, prompting some EU Member States including Portugal , Germany and Ireland to disincentivise Pome oil usage in their biofuels mandates. Most recently in October, the Dutch emissions authority (NEa) said that it will investigate the international Pome oil supply chain with a focus on "fraud risk", and that any findings could be used in policy recommendations. European Pome oil demand is currently expected to remain stable in the near-term at around 1.9mn t/yr, according to Argus Analytics, but removal of policy support by more markets in the new year could tip the balance. Higher demand for Annex IX Part A feedstocks under the RED III may drive other EU countries to absorb Pome oil volumes diverted from markets that have chosen to disincentivise the feedstock by removing it from the classification. By Malcolm Goh Asian waste oil prices ($/t) Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Q&A: Huntsman sees stronger 2026 on US, China recovery

11/12/25

Q&A: Huntsman sees stronger 2026 on US, China recovery

Bahrain, 11 December (Argus) — Chemicals producer Huntsman expects 2026 to bring a steadier business environment, with tariff-related uncertainty easing and interest rates stabilising. Speaking to Argus on the sidelines of the 19th Gulf Petrochemicals and Chemicals Association (GPCA) forum in Bahrain, chief executive officer Peter Huntsman said the company sees gradual improvement in the US construction sector, anticipates a recovery in consumer confidence in China, and is implementing price increases to address the ongoing pricing pressure in Europe. In your latest earnings report, you mentioned continued weakness in the construction and industrial sectors, particularly in Europe. Today, you also spoke about high interest rates in the US. Do you expect these headwinds to improve in 2026? During last year's construction season, we faced higher interest and mortgage rates along with significant economic uncertainty — particularly in spring 2025 around tariffs. That created a lot of volatility and questioning in the US economy. In 2026, I don't expect that same tariff-related uncertainty. I think the waters have settled, and people have adjusted to interest rates. They may even decline a little, or at least stop rising. So overall, I expect the business environment in 2026 to be better than in 2025. Huntsman cited pricing pressure across the portfolio in the third quarter. What trends are you seeing this quarter, and are certain product lines or markets feeling the impact more than others? Most of the pricing pressure is in Europe, where there is little growth and people are producing more than what the market can absorb. So there is a price war going on. We don't see this dynamic in North America or China. We are currently implementing a series of price increases in the European market to address this. You've noted that Europe's chemical sector requires greater collaboration in light of higher energy costs and regulatory hurdles. What type of collaboration works best and how is Huntsman positioning itself? We expect energy-intensive chemical production — aromatics, olefins, and other basic raw materials — to continue shifting out of Europe. These materials will increasingly be produced in the Middle East, China, and the US, and then imported into Europe. European producers will focus more on downstream activities such as formulation and blending. That's the type of collaboration and restructuring I'm referring to. You'll see capacity closures in Europe and more investment in the Middle East, China and North America. Turning to China, how are weak consumer confidence and excess capacity impacting your margins and demand? Our businesses in China are currently the strongest we have globally, in both consumption levels and margins. I expect the Chinese economy to improve next year as consumer confidence gradually recovers. I believe 2026 will end stronger than 2025. Regarding Europe's regulations — such as REACH and sustainability policies — are these a greater challenge than energy costs? Regulations are the easier of the two to control, but high energy costs — especially LNG — will take longer to resolve. Both, however, are significant drags on the European economy. Europe could change how it operates if it chose to, but so far we hear more discussion than action. How do US tariffs and export controls impact your business, especially in China? We produce a lot of products in China and a lot in North America, but we don't trade much between the two; products made in China largely stay in China, and products made in North America stay in North America. The same is true for Europe. So tariffs don't significantly affect our raw materials. They do affect our customers, though, particularly in sectors like the automotive sector, where manufacturing is now shifting to the US. Some of their assemblies are moving there as well. For us, the total volume may remain the same, but we see changes in where that volume is produced and consumed. So we are seeing tariffs impact our customers, but not on our raw materials. Looking ahead to next year, which segments do you expect to drive the most growth, and how will you prioritise investments? We expect continued recovery in aerospace and in materials sold into the tech and semiconductor industries, for cleaning solutions and similar applications. Insulation and energy-conservation products should also perform well. We anticipate a gradual improvement in US construction in 2026 as well. How is Huntsman actively positioning itself for the clean-energy transition? Are there any new pilot projects, near-term targets, or strategic investments underway? We will continue producing highly energy-efficient materials and inputs for insulation, solar, electrical-grid infrastructure, EVs, and more. These will remain growth areas for us. But many publicly stated targets — for example, Europe selling only EVs within a few years — are unrealistic. Consumers aren't adopting EVs at the expected pace, and governments shouldn't force them. When I say the conversation [around sustainability] isn't based on reality, I mean that we cannot eliminate hydrocarbons entirely. Claims that we can move "beyond petroleum" are not realistic. By Rithika Krishna Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Global bioplastics production set to rise: Correction

03/12/25

Global bioplastics production set to rise: Correction

Corrects name of EUBP secretary general in final paragraph. This story was originally published on 2 December London, 3 December (Argus) — Global bio-based plastic production capacity is set to double to 4.7mn t by 2030, according to the latest report from the industry association European Bioplastics (EUBP). The organisation published a report with the Nova Institute, which estimated that current production capacity is roughly 2.31mn t and represents 0.5pc of the total plastic production capacity worldwide. The bioplastics industry in 2025 operated at an overall production utilisation rate of 72pc up from 63pc reported in 2024, meaning that roughly 1.67mn t of bioplastics were produced in 2025. The association noted that depending on the bio-polymer and production region in question utilisation rates varied massively. In 2025, polylactic acid (PLA) production capacity represented 26.4pc of the total production followed by bio-polyamide production (bio-PA). Bio-polyethylene (bio-PE) production capacity stood at 12.7pc, while bio-polypropylene production capacity stood at 1pc of total global bioplastic production capacity. The report expects bio-PE production capacity to rise to 13.5pc of the total production capacity or roughly 633,000 t/yr with similar figures expected for bio-PP at 13.6pc. In Europe, the report expected stated that current bio-based production capacity in 2025 was 330,000 t/yr with 28.1pc of this coming from bio-PA, 30.3pc coming from PBAT, 5.2pc coming from bio-PE and 6.7pc coming from bio-PE. At the EUBP, conference taking place in Berlin on 2-3 December, the report's authors mentioned that they have not included mass-balanced capacities in their figures, preferring to mention only biomass feedstock-only pathways. Currently, EUBP does not recognise the mass-balanced approach as set out in a position paper but it remains under discussion, with differing opinions about the adoption of the definition counting towards bio-based material heard today at the conference. The figures also do not include bio-degradable materials that are produced from fossil fuels. By 2030, total production capacity of biobased plastics in Europe is set to rise to 800,000 t/yr. This is largely being driven by increases in bio-PE and bio-PP production. Bio-PE capacity is set to rise to 138,400 t/yr in five years time from 22,110 t/yr, while bio-PP production capacity will rise to 238,400 t/yr by 2030, up from 17,316 t/yr in 2025. This is largely set to be driven in Europe by methanol-to-polymers (MTP). The bio-plastics and chemicals industry in Europe last week reacted to the European Bioeconomy strategy . The latest version of the strategy released indicated that the European Commission would look to introduce bio-plastics as being able to count towards some content requirements. At the Berlin conference today, EUBP Secretary General, Lorenza Romanese, described the strategy as the "the best news" for the industry in Europe in recent years. By George Barsted Global bioplastics production capacity forecast Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU readies new bioenergy strategy

26/11/25

EU readies new bioenergy strategy

Brussels, 26 November (Argus) — The European Commission is today expected to adopt a new strategy aimed at boosting "nature-positive" investment and making better use of biomass. The latest version of the strategy seen by Argus deleted wording from a previous leaked draft that mentioned disincentivising "inefficient" biomass combustion, including changes to EU and national subsidies to avoid prioritising combustion over material use. Industry groups last month had criticised the previous draft strategy for "punishing" biomass combustion and ignoring the role of sustainable biofuels. The commission may still amend the current strategy document, which sets out a direction for policies but is not itself a legal proposal. Demand for biofuels will likely rise from 2025, in part thanks to the bloc's ReFuelEU Aviation and FuelEU initiatives, but sustainable biomass remains finite and its use is most effective in hard-to-abate sectors, the commission said in the document. The commission wants to add value to energy, industry, food, health and other sectors through biomass processing and biotechnology. The body said it would, for example, support uptake of bio-based plastics and novel materials by 2027 alongside recycling. Officials could also assess whether EU-wide definitions could support certification and scaling of bio-based polymers. And an EU methodology could certify long-lasting biogenic carbon storage in buildings under the carbon removal and carbon farming certification framework. The commission will issue legislation such as the upcoming BioTech Acts to bolster industrial production of bio-based chemicals and may target bio-based content requirements in some products. In the strategy, the commission and the European Investment Bank will use finance instruments to support biorefineries that incorporate new technologies. And a forthcoming Circular Economy Act aims to support biogas and biomethane production as well as using digestate as a fertiliser. A review next year of the bloc's emissions trading system will also explore potential for scalable biogenic carbon, capture, use and storage projects. The EU is also scheduled to review its Renewable Energy Directive by 2027 and assess how national biomass support schemes affect biodiversity. Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Q&A: European Bioplastics wants more EU policy support

26/11/25

Q&A: European Bioplastics wants more EU policy support

London, 26 November (Argus) — The bioplastics industry in Europe hopes to see more policy support for the sector from the EU, as costs and investments remain a concern even though demand from the packaging sector is growing, European Bioplastics' EU Policy Affairs manager, Julie Pieters told Argus. We have seen some regulatory support from the EU for the recycling industry with content targets, particularly in the Single Use Plastics Directive (SUPD) and the Packaging and Packaging Waste Regulations (PPWR), but is there any legislation that is in the works to support bio-attributed and bio-based plastics? At the moment the only thing we have in place is a communication from the European commission in 2022 on bio-based, biodegradable and compostable plastics. But this is only a communication. In the Packaging and Packaging Plastic Waste Regulation (PPWR) there is a legislative hook for bio-based plastics. In principle, the review needs to be done by 2028 but the European Commission told us that it would like to do it before 2027. They would need to do a review of where the bio-based plastics market is today, and based on that they could begin a legislative proposal for bio-based content in plastic packaging, setting targets and seeing if bio-based content can be used to count towards recycled content targets that are already in place. Some applications of plastic packaging will also be marked as having to be made compostable. EU member states can also make this list of products longer if they wish to, so some bioplastic examples are also showing real opportunities in the field. There has also been some talk from people about having bio-based targets in other sectors like the automotive or construction field. A great example of this would be in the end-of-life vehicle regulation (ELV) proposed by the EU. Bio-based targets on plastics in cars is still in trilogues [a trilogue is a negotiation between the European parliament, the council and the European commission] so we would have to wait to see what comes out in the final directive. What are the hurdles that bioplastics producers are facing, both in Europe and globally? I think the European bio-plastics industry faces similar hurdles to other European industries — trade hurdles, investment hurdles, competition with other regions in the world. We developed a lot of the bioplastics technology in Europe but the industrialisation can often take place outside of Europe because of lower energy costs and investment opportunities. I think also policy support can help to boost the sector both in Europe and globally. We have had members of the association want to invest in Europe but in the end they have ended up going to other regions because the market is just bigger. I don't think the support mandated from the EU and the clarity for producers in Europe is not quite there yet, especially when it comes to encouragement in developing the market. What parts of the bioplastics space in Europe are currently faring well commercially, are there any products or projects that are doing particularly well? Or are there any end-use sectors that are seeing uptake? Currently, the most success we are seeing is in the packaging sector, mainly related to food packaging at the moment. Around 50pc of the bioplastics demand comes from packaging. Things like fruit and vegetable bags and compostable bin liners are doing well in terms of end-use. Polylactic Acid (PLA) is seeing some growth potential in some market segments as well with uptake. Some drop in polymers are also seeing movement for more durable goods, cosmetic packaging, automotive components as well especially if they allow for rapid substitution of fossil based carbon. Does the association have a position on the difference between feedstocks? For example take bio-attributed plastics such as bio-PE derived from bionaphtha via a mass balanced approach versus something like PLA? How do you define biomass feedstock? I think it can occasionally be a bit of complex question to answer particularly in terms of mass balance. European Bioplastics association represents all types of bioplastics and we have a position on the technology of mass balance which can help allow us to remove some fossil-fuel derived material from the plastics space but there needs to be safeguards as well, especially in terms of communication towards the consumer. In terms of biomass feedstock at the association we define it as being the material or product is partly derived from biomass (plants). Biomass used for bioplastics usually stems from material like corn, sugarcane or cellulose. It is also important to note that some material that can be biobased but not bio-degradable, some can be biodegradable but not bio-based and some can be both bio-based and bio-degradable. The European Bioplastics Conference is taking place in Berlin on 2-3 December. What are some of the key themes that will be discussed there? It's the 20th anniversary of the conference so it will look back at the last 20 years of the bioplastic industry in Europe and try to provide a snapshot of where the bioplastics market in Europe is at currently. The bioeconomy strategy report published by the European Commission just before the conference will also play a role in discussions. In the bioplastics sphere, the industry is struggling with the same kind of difficulties as the petrochemical sector in Europe, which we know is not doing well at the moment. But as it is more of an innovative sector this can provide an additional burden, especially when it comes to feedstocks and feedstock pricing. The conference is timely in the sense we see some positive policy developments coming out of Brussels and we hope they come in time to support the sector. Otherwise, the conference always provides the opportunity to discuss the latest innovations in the biobased and compostable plastics sphere and to go deeper into their functionalities. By George Barsted Argus recently launched the industry's first biochemical reference prices, built on Argus methodology and derived from ISCC-certified bio-naphtha. Published monthly and calculated from daily bionaphtha and biopropane premiums, these references cover bio-attributed ethylene, propylene, butadiene and benzene. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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US tariffs hit Brazil rosin ester sales for 1Q 2026

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