AFPM ’13: Tall oil fatty acid supply to tighten on feedstock shortening

25 March 2013 19:49  [Source: ICIS news]

SAN ANTONIO, Texas (ICIS)--Tall oil fatty acid (TOFA) supply is expected to tighten during the next several months, as feedstock crude tall oil (CTO) stocks in the US may shorten, industry participants said on Monday.

Speaking on the sidelines of the International Petrochemical Conference (IPC), North American fatty acid market players said the CTO streams are largely balanced to demand in TOFAs in the first quarter of 2013, but may shorten quickly as domestic and foreign requirements for the crude stream could increase because of demand from biofuels.

US sources said domestic demand for TOFAs is on the upswing because of increased use of C18 fatty acids in drilling applications.

Domestic market players said that US demand for the acids is being met, but an additional pull on the feedstock CTO supply could become an issue as biodiesel operations is Europe are seeking additional resources to use in transesterification processes.

At least one major European biodiesel producer is said to have a 120,000 tonne/year biodiesel plant operating with CTO as a feedstock.

US sources said European concerns are interested in seeking additional CTO from North America, which could significantly affect domestic supply.

CTO is derived from certain paper milling processes that utilise soft-woods as feedstock.

TOFAs are then produced from the CTO.

Suppliers include Arizona Chemical and MeadWesvaco.

Hosted by the American Fuel & Petrochemical Manufacturers (AFPM), the IPC continues through Tuesday.

By: Judith Taylor
+1 713 525 2653

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