Swedish TOFA exports to US at record in 1H
Sweden's tall oil fatty acids (TOFA) exports to the US rose to an all-time high in the first half of 2024 owing to tighter US domestic supplies.
Swedish TOFA supply to the US totalled 9,960t from January to June this year, Global Trade Tracker (GTT) data show, the highest since the start of the dataset in 2015.
Sweden, a key European TOFA supplier, sent 3,196t to the US in January, 3,364t in April and 3,080t in June, and some marginal amounts in February, March and May, according to the GTT data.
US crude tall oil (CTO) feedstock refining capacity declined this year, limiting TOFA output.
US specialty chemicals producer Ingevity shut down a CTO fractionation facility in DeRidder, Louisiana, earlier this year and converted its Crossett, Arkansas, site to run 100pc on non-tall oil feedstocks in 2023. These reduced US CTO refining capacity by around 30pc and shortened local TOFA supply, market sources said.
Reduced US TOFA supply has encouraged local buyers to seek alternatives, including importing from countries like Finland. A Finnish supplier has sent some to the US and is considering sending more in the coming months.
TOFA is a fraction obtained by the distilling of CTO and can be used into alkyd resins, coatings, dimer acids, fuel additives, lubricants, oilfield chemicals, and biofuels, among other applications.
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