FEICA 2023 Conference and EXPO
Tarragona, Spain, 13-15 September 2023

Presentation Abstract

The changing feedstock panorama: the future of CTO and pine chemicals

Structural changes in raw material markets are tightening feedstock supply for many classes of chemicals, including pine chemicals. The supply of crude tall oil (CTO) and some of the derived bio-fractions has tightened over the last few years due to increased demand into biofuels, supply chain disruptions and competitive market dynamics. With the competing use of CTO for biofuels and higher prices due to reduced availability, buyers are considering formulating away from certain CTO based feedstocks. With increased price volatility, limited supply and softer downstream demand, the outlook is less certain for finished products like tall oil rosin (TOR). With inelastic CTO availability and its growing usage into biofuels, the CTO feedstock supply for the adhesives industry could be replaced by other alternatives, including more plentiful and cheaper priced petroleum-based tackifying resins and even additional gum rosin. The supply of CTO and CTO-based feedstocks for adhesives has been challenged by availability and pricing. This presentation will examine the current market dynamics, supply fundamentals and challenges for CTO and CTO-based feedstock markets, gum rosin and hydrocarbon resins and how these may affect the supply panorama for the adhesives industry.

Co-author(s): Steven Williams