Oleochemicals
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Argus covers the entire energy and commodities supply chain, feeding insight from its biofuels, agriculture and energy teams into its coverage of oleochemicals to provide you with a full picture.
Latest oleochemical news
Browse the latest market moving news on the global oleochemical industry.
Brazil's bioLPG hits glycerin barrier
Brazil's bioLPG hits glycerin barrier
Sao Paulo, 27 March (Argus) — The use of glycerin to produce renewable LPG, known as bioLPG, could reshape how it and other biodiesel byproducts are viewed in Brazil, but structural constraints around feedstock quality and cost are likely to limit its attractiveness in the near term. Energy research company Epe outlined bioLPG's potential role in a fact sheet published in January, presenting it as chemically identical to LPG and fully compatible with existing infrastructure. Because it is a drop-in fuel, bioLPG could support decarbonization in segments such as cooking and small-scale industry without requiring changes to equipment or distribution systems. But Epe added that domestic production remains incipient and highly dependent on how bioLPG is positioned within existing biofuel chains. BioLPG is not a primary output in most of Epe's production pathways, but a co-product of larger, capital-intensive processes such as renewable diesel and sustainable aviation fuel. Emerging alternatives, such as the conversion of glycerin in the biodiesel stream, could expand supply while boosting biomass streams in Brazil. Glycerin is a by-product of biodiesel production. It is widely used in pharmaceuticals, cosmetics and food applications because of its stability and ability to hold water. But glycerin produced in Brazilian biodiesel plants is mostly crude and would require additional refining before it could be used as feedstock for bioLPG. This extra processing step adds cost and complexity, especially in a market where bioLPG would still need to compete with LPG and other fuels. Large Brazilian biodiesel producers are not investing in glycerin refining, meaning they cannot supply the product needed by the bioLPG market, they told Argus . These plants say that crude glycerin is important to their revenue, but it is mostly destined for export and they have no plans to invest in expanding the market domestically. Brazil produced 8.65mn t (176,790 b/d) of biodiesel in 2025, according to oil regulator ANP. With a 10pc glycerin yield, crude glycerin production is estimated at about 865,000t for the year. Combined exports of crude and refined glycerin totaled 821,245t in 2025, with China, India and Russia standing out as the main destinations. Refined glycerin represented 145,00t of that total. Industries would need to pay a premium to international prices for those glycerin volumes to stay in Brazil. Brazilian calculated crude glycerin prices stand at $770-780/t fob Santos, according to Argus ' biweekly assessment published on 19 March. Refined glycerin at the port is trading between $1,250-1,270/t. These dynamics underline the gap between the technical promise of glycerin-based bioLPG and current market behavior. While glycerin is abundant, its existing export outlet provides liquidity and price discovery that domestic bioLPG projects would struggle to match without policy support or long-term offtake agreements. Redirecting glycerin toward bioLPG production would require domestic buyers to compete with international bidders while also absorbing the cost of refining. BioLPG is expected to expand on a larger scale at first by leveraging existing renewable diesel, SAF or other processes that can handle renewable feedstocks and produce bioLPG as a co-product. Epe itself points to incentives, regulatory clarity and cost reductions as prerequisites for accelerating domestic bioLPG supply. Until those conditions are met, glycerin-to-bioLPG is likely to remain a medium-term option rather than a near-term lever for improving biodiesel margins. By Rebecca Gompertz and Natalia Dalle Cort Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
United Resins buys 50pc stake in Brazil’s Florpinus
United Resins buys 50pc stake in Brazil’s Florpinus
London, 24 March (Argus) — Portuguese pine chemical derivatives producer United Resins has acquired 50pc of the share capital of Brazil's Florpinus Industria Quimica, the latter company said. The acquisition adds 35,000 metric tonnes (t)/yr of pine oleoresin and 30,000 t/yr of gum rosin processing capacity, as well as 18,000 t/yr of gum rosin derivatives capacity, according to Florpinus' website. The Florpinus group includes Florpinus Industria Quimica, which operates its pine chemical facilities, and Resisul Agroflorestal, which manages 1,989.20 hectares of forests. "This transaction represents a significant strategic step in strengthening the group's value chain," the company said. The deal gives United Resins access to "critical raw materials" such as pine oleoresin and gum rosin. Brazil is a leading supplier of elliottii gum rosin and Portugal's largest provider of the material. Citing synergies between the two companies, Florpinus said the transaction enables vertical integration of their combined elliotti gum rosin and tall oil rosin (TOR) portfolio, increases capacity to develop new value-added products and expands their presence in Europe, Latin America and North America. TOR is a fraction obtained from crude tall oil refining. TOR and gum rosin are interchangeable in several applications, but their production processes differ. Both gum rosin and TOR are used as feedstocks for gum rosin derivatives used in adhesives, road marking and food and beverage applications. Florpinus' main facility and headquarters are in Campo Largo, Parana state. It also operates a facility in Itapeva, Sao Paulo state. As part of the deal, United Resins' co-founder and chief executive officer Antonio Mendes Ferreira will be named as a member of the Florpinus board of directors, the company added. By Leonardo Siqueira Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US biofuel inputs hit multiyear highs on war, policy
US biofuel inputs hit multiyear highs on war, policy
New York, 20 March (Argus) — US feedstocks to make renewable diesel have risen to their highest prices of President Donald Trump's second term, buoyed not just by spiking prices in other energy markets but also by more supportive biofuel incentives. All major US renewable diesel feedstocks hit their highest prices in more than two years this month, according to Argus assessments, tracking energy values that have surged as Iran responds to US-Israeli strikes by attacking Middle East energy infrastructure and restricting access to the strait of Hormuz. Costlier oil makes alternatives like biofuels more attractive. But rising prices for animal fats and recycled cooking oil have also been driven in large part by biofuel policy, a signal that high prices could persist even if tensions in the Middle East ease. Front-month futures for soybean oil, a key renewable diesel input, have risen by 36pc so far this year, but unlike crude, most of those gains predate the war. That's good news for feedstock suppliers — including the agribusiness giants investing in new soybean and canola crush capacity to meet renewable diesel demand — but not so good for industries like food manufacturing that compete with biofuel plants for scarce inputs. Renewable diesel refineries can stomach high feedstock costs when biofuel incentives are strong but could struggle to pay current premiums if policy underwhelms. The Trump administration is potentially days away from finalizing biofuel blend mandates that have been proposed at record-high levels. The price of US credits generated from blending biomass-based diesel hit three-year highs earlier this month, supporting biorefining margins and signaling that traders expect supportive final quotas. US renewable diesel makers that cut output in 2025 and scheduled maintenance early this year are now raising production to meet demand, boosting feedstock costs in the process. The administration has said it expects to finalize new mandates this month, and traders have taken a White House event to celebrate agriculture next week as another sign that the quotas both support farmers and could arrive any day. That event was scheduled early this month and has no explicit biofuel focus, but biofuel producers were invited, according to sources familiar with the planning. Bullish sentiment ahead of the release is showing up in delivered feedstock prices. While soybean oil futures are up 7pc since their February close, common feedstocks delivered to the US Gulf coast are up by more ( see graph ). Used cooking oil delivered by rail or truck into the key biorefining region has risen by more than 14pc over the same time-frame to 73¢/lb, its highest since 2022. US tallow delivered by rail into the Gulf is likewise up by 14pc, partly because of a shrinking cattle herd and a labor strike at a major beef processing plant in Colorado. These gains have not extended to global alternatives, with Chinese export prices for used cooking oil up modestly this year and Brazilian tallow slightly down. This too reflects policy: a US tax credit crucial for biorefining margins starting this year is limited to fuel from North American feedstocks, making imports less attractive. Producers outside the US, such as Canada's Braya, have scooped up cheaper imported used cooking oil in recent months as US buyers retreat. But the current discounts could still appeal to US biorefineries looking for alternatives to pricey domestic options, especially coupled with fewer trade barriers after the Supreme Court struck down Trump's most expansive tariffs last month. Trump has since reinstated a 10pc charge on most trading partners, though this represents a significant reduction for suppliers such as Brazil, which had faced a more than 50pc US tariff on its beef tallow. Tallow for export at Brazilian ports was last discussed at roughly 30pc below Gulf coast delivered prices, while Australian tallow was around 25pc lower, leaving room for viable trade even after accounting for tariffs. Policy pitfalls Plenty can still change in policy, with the final biofuel quotas still under White House review. Oil refiners that have swayed officials on issues like Jones Act waivers are warning that the cost to meet record biofuel mandates would spill into already-rising retail fuel prices. A plan to make larger oil companies blend more biofuels to offset program exemptions granted to their smaller rivals is a particular focus of last-minute lobbying. Biofuel producers — popular in parts of the administration for soaking up demand for crops that otherwise depend on export markets — also see opportunity. A coalition of biomass-based diesel producers and feedstock suppliers wrote to Trump this week that strong biofuel mandates are one way to "counter global oil market disruptions". Any rethink would only "exacerbate the recent spike in diesel fuel prices", argued the groups that include Clean Fuels Alliance America. By Cole Martin and Jamuna Gautam US Gulf feedstocks outpace futures ¢/lb Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Less EU CTO supply meets soft rosin markets
Less EU CTO supply meets soft rosin markets
London, 6 March (Argus) — Weaker softwood pulp markets have reduced European crude tall oil (CTO) supply, but soft rosin markets remain a limiting factor for tall oil fractionators in 2026, sources told Argus . With tighter CTO availability in Europe, refiners have turned to US imports to meet rising demand for tall-oil-based fatty acids used in biofuels. Swedish and Finnish refiners imported 318,485t of US CTO in 2025 — the highest since 2010 — up from 218,160t in 2024 and 174,568t in 2023, Global Trade Tracker (GTT) data show. Imports surged because of reduced Nordic tall oil supply, greater interest in higher-rosin fatty acid fractions such as crude fatty acids (CFA) for biofuels, and increased run rates at several fractionators. While European CTO imports from the US have risen, fractionation rates vary among companies depending on their rosin exposure, sourcing strategies and product mix, participants told Argus during meetings and site visits in Finland. "Rosin remains the limiting factor," CTO refiners said. Rosin is one of the main fractions produced during tall oil distillation. It is used in paper sizing, printing inks and as a feedstock for rosin derivatives. Rosin and derivative markets have faced declining demand in recent years because of falling paper and printing-ink use, and competition from cheaper and oversupplied hydrocarbon resins (HCR) in adhesive and road-marking applications. As a result, C5 HCR from China continues to land in Europe at discounts of several hundred euros on a delivered basis compared with pine-derived rosin derivatives, suppliers and adhesive formulators said. Some CTO refiners are running at higher rates because of firm biofuels demand and a product mix less dependent on rosin. Others have reduced fractionation because of changes in strategy or sourcing. Selling more fatty acids into biofuels generates more rosin as a co-product, adding to stock pressure in an already soft rosin markets. CTO refiners have explored reducing their reliance on rosin markets by using higher rosin levels in CFA. End-users can tolerate 8–20pc rosin in tall-oil-derived fractions such as CFA, which could ease some of the stock pressure, participants said. But higher rosin content makes it harder to produce 100pc HVO compared with other feedstock options, one participant noted. Lower run rates at some facilities, combined with higher CTO costs, resulted in firmer first-quarter tall oil fatty acid (TOFA) contract prices of €1,525–1,675/t delivered — a 5.8pc midpoint rise from €1,450–1,575/t in the fourth quarter of 2025. Lower-rosin European TOFA can also be used in biofuels, but its higher price relative to the higher-rosin CFA alternative limits sales into that sector. Even so, stronger demand for advanced feedstocks such as CTO and its derivatives under the EU's Renewable Energy Directive (RED III) could support some TOFA use despite its structural premium over CFA. By Leonardo Siqueira Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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