Oleochemicals
Overview
You get access to pricing, global industry news and analysis of key economic drivers on a weekly basis. You’ll also get up to date trade flow coverage.
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 turpentine prices rise 41pc on year
Brazil turpentine prices rise 41pc on year
London, 18 February (Argus) — Brazilian Pinus elliottii gum turpentine prices have increased by 41pc compared with a year earlier, with availability tightening as a result of firm demand at key end markets. Argus assessed Brazil gum turpentine prices at $2,400-$2,600/t fob on 17 February, Brazil port, up from $1,700-$1,800/t fob a year earlier. Gum turpentine supply is thin because of lower gum rosin processing rates caused by softer downstream markets. Gum turpentine and gum rosin are coproducts of pine oleoresin feedstock distillation, with gum turpentine representing a smaller fraction of the finished product. Several factories in Brazil reported being sold out for the elliottii gum turpentine product until February and March. Some buyers prices will likely continue to rise throughout the second quarter of this year. With a bearish demand outlook for rosin, processing rates will likely remain low, further limiting gum turpentine production amid firmer demand in key markets like aroma chemicals and house cleaning products. By Leonardo Siqueira Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Darling sees 45Z benefits even with changes
Darling sees 45Z benefits even with changes
New York, 6 February (Argus) — US food company Darling Ingredients says a new US tax credit for low-carbon fuels is already boosting demand for its feedstocks and fuel, setting the company up to profit even if the rules of the incentive shift. The Inflation Reduction Act's "45Z" credit was always expected to help Darling, which has partnered with US refiner Valero on multiple US biofuel facilities and markets low-carbon biofuel feedstocks like animal fats that earn more subsidy under the incentive than conventional vegetable oils. Guidance around 45Z issued by former president Joe Biden also cut off opportunities for fuels derived from canola oil and imported used cooking oil , potentially boosting demand for Darling's animal fats. The company this year is seeing "improving" animal fat prices and demand for low-carbon feedstocks, both from the company's Diamond Green Diesel joint venture with Valero and from other processors, chief executive Randall Stuewe said on earnings call Thursday. At the same time, the Biden guidance left out answers on thorny questions about the credit, saying for instance that agencies will provide clarity later on how refiners can obtain necessary third-party certification for sustainable aviation fuels (SAF) and how they can apply for special emissions rates for unique fuel pathways. Plus, existing guidance is preliminary, meaning President Donald Trump's administration could shift credit rules when designing formal regulations. Congress could also make changes. But Darling executives were confident not only that they can make deals around the current guidance but that the company could adjust if policy changes later this year. "Could the notice change, or could a new notice be put out? That's certainly possible," executive vice president for strategy Robert Day said. "We are confident, given the global network that we have and the integration between Darling and Diamond Green Diesel and Valero, that we'd be able to adapt to whatever regulation holds." Day added that he expects other producers to "struggle" to deal with the complexity. Lower domestic production of biofuels coupled with lower imports will likely raise prices of US renewable identification number (RIN) credits and state low-carbon fuel standard credits, supporting margins for producers that remain, he said. Diamond Green Diesel sold 294mn USG of renewable diesel during the fourth quarter last year, down by nearly 13pc from the same period last year. A project to produce up to 15,000 b/d of SAF at its Port Arthur, Texas, plant is now fully operational, Valero said last week, and Diamond Green Diesel is considering other projects to up SAF capacity, Darling chief operating officer for North America Matt Jansen said. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Ingevity mulls performance chemicals, CTO refinery sale
Ingevity mulls performance chemicals, CTO refinery sale
London, 17 January (Argus) — US-based specialty chemicals producer Ingevity is considering the sale of its performance chemical industrial specialties product line and its crude tall oil (CTO) refinery in North Charleston, South Carolina. Industrial specialties go into the paper chemical, rubber, adhesive, oilfield and lubricants markets. A secondary refinery at the North Charleston manufacturing plant, which has capabilities to refine CTO and oleochemicals, is not included in the review, the company told Argus . Nor is its performance chemicals road technologies product line, nor certain lignin-based products reported in the company's specialty product line. Ingevity said exiting most of its specialties product line will help it focus on higher margin and growth opportunities, but added said it cannot assure the process will result in a transaction. The company expects to communicate further plans before year-end, but does not intend to disclose additional developments until it is determined that disclosure is appropriate. Market participants told Argus the announcement opens up opportunities for either a new or an existing pine chemicals company seeking to operate in the US market. One said flexibility into the potential terms of a deal would probably help Ingevity find a buyer. But uncertainties over agreements with other service providers would make a deal more complex, another said. The closure of Ingevity's CTO fractionation sites in DeRidder , Louisiana, in 2024, and the conversion of a facility in Crossett ,Arkansas, in 2023 to run 100pc on non-tall oil fatty acids cut US CTO refining capacity by 30pc or 300,000t, sources have estimated. The measures also led to reduced domestic CTO consumption into fractionation and local tall oil fatty acids (TOFA) supply for the lower-rosin grades, sources said. TOFA is a fraction obtained by the distilling of CTO feedstock. By Leonardo Siqueira Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Malaysian crude palm oil futures fall
Malaysian crude palm oil futures fall
Singapore, 17 January (Argus) — Benchmark crude palm oil (CPO) futures on the Bursa Malaysia Exchange fell by 197 ringgit/t ($44/t) or 4pc on the week to 4,183 ringgit/t by the 4:30pm Singapore close. The CPO futures declined over four straight sessions from 14 January to the lowest level in three months, likely following a reported fall in CPO exports for a second month in December , according to Malaysian palm oil board (Mpob) data. The recent export suspension for palm oil mill effluent (Pome) oil and used cooking oil (UCO) by Indonesia has also resulted in uncertainty for Indonesian CPO supply, as the country's trade ministry alleged CPO was blended into the waste oil pool and exported out under Pome oil or UCO HS codes. The upcoming mandate for a higher 40pc palm oil-based biodiesel blend is also expected to come into effect by end-February , further limiting CPO availability. Malaysia maintained its CPO export levy rate at 10pc for February 2025, but lowered the reference price to 4,817.70 ringgit/t from 5,001.72 ringgit/t a month, earlier in line with a 7pc year-to-date fall in the CPO futures. Market participants suggested Indonesia may raise its palm oil export levy to 10pc, matching the Malaysian levy rate. The government is expected to announce further measures to restrict waste oil exports and boost funding for its B40 mandate, possibly early next week. With CPO futures returning to a discount to rival soybean oil futures in January, as well as lower Indonesian CPO availability, CPO could see price support from buyers switching and lower overall supply in the market. By Malcolm Goh Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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