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Swedish TOFA exports to US at record in 1H

  • : Chemicals
  • 24/09/18

Sweden's tall oil fatty acids (TOFA) exports to the US rose to an all-time high in the first half of 2024 owing to tighter US domestic supplies.

Swedish TOFA supply to the US totalled 9,960t from January to June this year, Global Trade Tracker (GTT) data show, the highest since the start of the dataset in 2015.

Sweden, a key European TOFA supplier, sent 3,196t to the US in January, 3,364t in April and 3,080t in June, and some marginal amounts in February, March and May, according to the GTT data.

US crude tall oil (CTO) feedstock refining capacity declined this year, limiting TOFA output.

US specialty chemicals producer Ingevity shut down a CTO fractionation facility in DeRidder, Louisiana, earlier this year and converted its Crossett, Arkansas, site to run 100pc on non-tall oil feedstocks in 2023. These reduced US CTO refining capacity by around 30pc and shortened local TOFA supply, market sources said.

Reduced US TOFA supply has encouraged local buyers to seek alternatives, including importing from countries like Finland. A Finnish supplier has sent some to the US and is considering sending more in the coming months.

TOFA is a fraction obtained by the distilling of CTO and can be used into alkyd resins, coatings, dimer acids, fuel additives, lubricants, oilfield chemicals, and biofuels, among other applications.


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25/11/14

EU deforestation law may be delayed further: IPOC

EU deforestation law may be delayed further: IPOC

Singapore, 14 November (Argus) — The European Deforestation Regulation (EUDR) will likely face a second delay this year, said Anri Hadi, Indonesian ambassador to the EU at the 21st Indonesian palm oil conference (IPOC) on 13 November. A 12 November EU vote on whether to extend a six-month grace period for penalties and measures to be applied on medium to large firms — initiated last month — was inconclusive without a majority vote on the proposal, said Hadi. For medium and large enterprises, the EUDR will take effect on 30 December 2025, but a six-month grace period would apply on its enforcement, and for micro and small operators, the EUDR would apply from 30 December 2026 if this proposal were to be accepted. If member states do not agree to a grace period by 15 December, the EUDR would take effect on 30 December 2025 for large and medium companies and on 30 June 2026 for micro and small enterprises. Some member states instead voted to delay enforcement of the EUDR altogether by another year, to December 2026 for medium and large firms and June 2027 for small and micro firms. Under this proposal, there would be no grace period for enforcing the regulation after starting in 2026, Hadi said. Palm oil and some byproducts such as glycerol with 95pc or above purity are listed in Annex I of the EUDR, meaning exporters will have to submit traceability data to relevant government authorities under the EUDR to gain access to the EU market. Sustainability and enforcement guidelines still unclear Hadi called for sustainability standards such as the Indonesian sustainable palm oil (ISPO) certification to be recognised under the EUDR and for government-aligned guidance regarding geolocation data sharing requirements. But providing sustainability data to facilitate EUDR compliance is considered illegal under Indonesian law, said Indonesian vice minister of foreign affairs Arif Havas Oegroseno. Citing Forest Law Enforcement, Governance and Trade (FLEGT) licensing within the timber industry as an example, he said Indonesia could set up a similar licensing unit to provide relevant data to government authorities in the EU while retaining sustainability data domestically. Under proposed traceability requirements, smallholder farmers would be unable to comply with the regulations, Oegroseno added. Farmers subsequently selling product to larger mills would also impact the supply chain as these mills may export palm oil into Europe. By Malcolm Goh Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Forest ownership helps Brazilian rosin makers cut costs


25/11/13
25/11/13

Forest ownership helps Brazilian rosin makers cut costs

Sao Paulo, 13 November (Argus) — Brazilian gum rosin and gum turpentine producers sourcing pine oleoresin from their own forests are better positioned to navigate weaker rosin markets, participants said at the Brazilian Pine Chemicals Meeting in Sao Paulo on 13 November. Rising pine oleoresin prices and softening gum rosin demand at key markets such as Portugal have squeezed margins, participants said. Factories in Brazil often buy the raw material in the spot market from third-party producers. The percentage of pine oleoresin sourced from third-party pine trees versus the factories' own forests can vary. Fewer players have sizeable forest assets, and most rely on third-party volumes. Argus assessed Brazilian elliottii pine oleoresin prices on 4 November at 5,100-5,230 Brazilian reals/t ($965-990/t) at the forest for cash payments. With gum rosin prices at $1,030-1,150/t fob Brazil port, margins are tight and in some cases negative. Access to in-house oleoresin at slightly lower cost can ease margin pressure, a seller said. Gum rosin, a co-product of pine oleoresin distillation, is a key feedstock for rosin esters production in Portugal and Spain. By Leonardo Siqueira Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Mexico industrial output extends declines in Sep


25/11/11
25/11/11

Mexico industrial output extends declines in Sep

Mexico City, 11 November (Argus) — Mexico's industrial production fell by 0.4pc in September from the prior month, marking a fourth consecutive monthly decline, with construction again the main drag. The September drop in the industrial activity indicator (IMAI), reported Tuesday by statistics agency Inegi, followed revised declines of 0.3pc in August, 1.1pc in July and 0.4pc in June. The result missed growth forecasts of zero change by Mexican bank Banorte and 0.1pc by Banamex, marking a fourth straight downside surprise for analysts. Both banks had expected construction to turn positive in September, pointing to advances on major government infrastructure projects, including 3,000km (4,800 mi) of new passenger rail routes by 2030. The finance ministry's proposed 2026 budget allocates Ps536.8bn ($29bn) for priority infrastructure projects, up from Ps189bn in the 2025 budget. Instead, construction fell by 2.5pc, following declines of 2.4pc in August, 1pc in July and 0.8pc in June. Within construction, civil engineering fell by 3pc after a 6.2pc drop in August, the steepest decline since October 2022. The sharpest drop came in new building construction, falling by 3.2pc in September — the largest in four straight months of contraction. Manufacturing output edged 0.2pc higher, after a 0.1pc uptick in August, with only four of 21 categories expanding. Petroleum and coal-derived products led growth at 6.3pc, with textiles, machinery and electronics also positive. But the transportation equipment segment, including light vehicles, contracted by 1.5pc, extending declines to four months. Banorte noted that analysis of manufacturing data has been complicated by the lack of US industrial figures for September because of the government shutdown, though trade-balance data suggest a slowdown in exports and a possible buildup in inventories that likely moderated production. Trade uncertainty persists despite a new extension of US president Donald Trump's tariff increase on Mexican goods — to 30pc from 25pc — and the ongoing US-Mexico-Canada free trade agreement review through mid-2026. The mining sector increased by 0.7pc in September after expanding by 0.3pc in August and 2.8pc in July. Oil and gas output rose by 0.5pc following a 0.1pc decline in August, in line with recent production trends . Non-hydrocarbon mining increased by 1.4pc after a 2.5pc drop in August, helped by firmer industrial metal prices. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Mexico factory contraction eases in October


25/11/04
25/11/04

Mexico factory contraction eases in October

Mexico City, 4 November (Argus) — Mexico's manufacturing sector contracted in October for a 19th consecutive month, but at a slower pace, according to the Mexican finance executives' association IMEF purchasing managers' survey. The manufacturing purchasing managers' index (PMI) rose to 47.2 from 46.0 in September, its third consecutive monthly increase and closer to the 50-point threshold that would mark the beginning of expansion. The uptick suggests the deceleration seen over the last 19 months has become "less pronounced, although without clear signs of expansion," said IMEF. Any "recovery in the manufacturing sector is still partial," it added. IMEF added prospects for recovery are deeply uncertain with discussions just beginning in the process to review and likely re-negotiate the USMCA free trade agreement with the US and Canada by July 2026. While the process could bring clarity to US tariffs enacted this year and ongoing treaty disputes, the "process is taking place within a challenging international context, given [US President Donald] Trump's tariff strategy and the volatility of his trade decisions." Key sub-indexes also rose in October, with new orders jumping 4.5 points to 47.2 and production moving 2.3 points higher to 46.7, both in their 19th month of contraction. But employment slipped to its lowest level since June 2022, dropping 0.9 points in October to 42.6, holding in contraction for a 21st month, and "underscoring the weakness in the industrial labor market." Inventories fell back into contraction in October, dropping 5.9 points to 46.3 after briefly climbing above 50 in September. IMEF's non-manufacturing PMI entered expansion territory for the first time in 10 months, rising 1.3 points to 50.4 in October, "suggesting a possible turning point in the performance of the services and trade sectors," IMEF said. New orders rose by 2 points to 50.8 in October after a 0.9-point dip in September. The production sub-index increased by 3.3 points to 50.5, while employment fell 0.5 points to 48.5. Despite improvements, IMEF stressed the long-term PMI trendlines for both the manufacturing and non-manufacturing index remain below 50 points, suggesting the recent increases "have yet to consolidate into a substantive change in economic dynamics." By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU grants €2.9bn in ETS innovation funding


25/11/03
25/11/03

EU grants €2.9bn in ETS innovation funding

Brussels, 3 November (Argus) — The European Commission has announced grants of €2.9bn to 61 net zero decarbonisation projects using revenues from the bloc's emissions trading system (ETS). The commission said the projects will cut some 221mn t of CO2 equivalent in their first decade of operation. A total of 10 projects were selected for large-scale decarbonisation grants totalling €1.26bn, five in cement and lime, three in refineries, one in chemicals and one projected for carbon capture and storage (CCS) infrastructure. A further 19 medium-scale projects, with a capital expenditure of €20mn-100mn, received a total of €459mn. Cleantech manufacturing funding was also awarded for 12 projects in renewables, energy storage, heat pumps and hydrogen production, with a total budget of €775mn. And 23 projects received €1bn for decarbonising transport, including 10 projects for sustainable fuel production, with €153mn for four electro-sustainable aviation fuel projects, €251mn for three e-methanol maritime projects and €78mn for e-ethanol, biodiesel and bioLNG. More than 270 projects have received a cumulative €15.6bn under the innovation fund to date. A further call is expected in December. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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