Global tall oil rosin (TOR) production is likely to decline in 2024 on the back of reduced fractionation rates and softer rosin demand.
Output of TOR, one of the key fractions obtained by the distilling of crude tall oil (CTO), is seen at 350,000t, down from an estimated 450,000-495,000t in 2022, two sources said.
"There is still a trend for biobased natural resins, but demand is not there yet," consultant Alex Cunningham said at the Brazil Pine Chemicals Meeting in Sao Paulo on 28 and 29 November.
TOR output is forecast to decline this year as CTO fractionation rates are down in the US and in Europe because of softer downstream rosin demand.
Closures of tall oil refineries in the US reduced domestic CTO fractionation capacity by about 30pc, according to market participants.
TOR and TOR derivatives can be used in various applications, including paper sizing, printing inks, adhesives and road marking.