Globally, the fatty acid market is mixed, with Europe and the US remaining significant net importers of vegetable-derived fatty acids from Asia, while also maintaining tallow-based fatty acid production streams.
Asian fatty acid production continues to be derived from vegetable, with C16 palmitic, C8s, C10s, C14, and any blends of these forming considerable portions of the materials imported by the US and Europe.
Tallow-based fatty acids in the US and Europe originate from traditional oleochemical production processes, where fats are split to create fatty acids with a glycerol co-product. In Asia, all fatty acid production is via the oleo route, using only vegetable oils.
C18 stearic fatty acid supply is considered to be long, while oleic fatty acids in the US are in tight supply because of increased industrial demand. The increasing demand continues to stem from rising oilfield production needs.
Tall oil fatty acids (TOFAs) are derived from wood-pulping processes and provide alternative streams for liquid-at-room temperature C18s.
Globally, TOFA supply is also tight, as China is less interested in exporting its soft woods for pulping.
In the US, standard fatty acid feedstock bleachable fancy tallow (BFT) is the feedstock for tallow-based fatty acids. Meanwhile, globally, soybean oil and/or palm kernel oil form the primary feedstocks for vegetable-based fatty acids.
Updated to mid-February 2013