Brazil gum turpentine exports down in 2023

: Chemicals
24/04/09

Brazilian gum turpentine exports in 2023 fell 4.2pc year on year to 26,976t as buyers in the US and France reduced purchases amid high stock levels and softer downstream markets.

Brazilian gum turpentine exports to the US declined by 61.7pc year on year to 2,440t, from 6,284t in 2022, according to data from Global Trade Tracker (GTT). France, another key market, imported 822t of Brazilian gum turpentine in 2023, a 63pc reduction compared to the 2,217t it had purchased in 2022, GTT data showed.

The US was not a significant buyer of South American gum turpentine in 2023 as stocks were elevated and were bought at higher prices in 2022. The supply of crude sulphate turpentine (CST), a competing product, was also ample.

France, previously the second largest buyer of South American gum turpentine, has sharply reduced Brazilian imports in the last few years. A key buyer in the aroma chemicals sector has faced softer downstream demand and high inventories, while also closing a terpene resins, wood rosin and gum rosin facility in the US in 2023.

With the tightening of pine oleoresin feedstock supply in Brazil in the 2023-24 season, Brazilian gum turpentine availability and inventories have become thinner this year, suppliers said.

Brazilian sellers are hopeful that volumes sold into the US will be higher this year compared with the volume the country imported in 2023. Business activity in the US has increased as buyer inventories are lower and Brazilian prices remain competitive compared to 2022 and early 2023 levels.

This year, the US has imported a total of 883t in January and February this year, levels not seen since late 2022. According to GTT data, the US is the second largest buyer from Brazil after India for the January-February period this year.

As Brazil gum turpentine availability is tighter and US demand into aroma chemicals started to rebound this year, prices for the Brazilian product have increased in recent months.

Argus assessed Brazilian Pinus elliottii based gum turpentine spot prices at $2,000-2,100/t fob Brazil port on 1 April, up over 16pc from the $1,650-1,800/t fob Brazil port levels seen on 3 January.

Japan, the third largest buyer in 2023, imported 3,126t, up by 21.8pc year-over-year from the 2,565t in 2022. Japanese imports of Brazilian gum turpentine in the first two months of 2024 are stable at 601t, the same level seen in January-February 2023.

China was the second largest buyer of Brazilian gum turpentine in 2023. Before and during Covid, Chinese demand dropped sharply with purchases declining from 1,044t in 2021 to a record low of only 480t in 2022.

Brazilian exports of gum turpentine to China dropped to almost zero from July 2021 because of competitive pricing from Indonesia and more expensive post-Covid freight rates. But improving shipping economics in 2023 and lower Brazilian gum turpentine pricing enticed Chinese buyers, and imports increased from the record low seen in 2022 to 4,884t in 2023.

Chinese imports of Brazilian gum turpentine have been higher so far in 2024, according to Chinese trade data. China imported 620t in January-February this year, an 11pc increase from the same period of 2023. India, the largest buyer from Brazil, bought 12,509t in 2023, a slight decline from the 12,944t it purchased in 2022. With lower pricing for the Brazilian product this year relative to early 2023, Indian volumes in the first two months of 2024 rose to 2,042t from 1,961t in the same period of 2023.

Sellers in Brazil believe tighter supply can support firm pricing looking forward, but demand from markets like China and India are largely price driven.

By Leonardo Siqueira

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

25/01/14

Australia's Jan-Nov tallow exports hit record high

Sydney, 14 January (Argus) — Australian tallow exports during January-November 2024 reached the highest on record, surpassing the previous record for exports in the whole of 2023. Australia exported 517,364t of tallow in the first 11 months of 2024, surpassing the 504,409t of tallow in 2023, according to the latest data from the Australian Bureau of Statistics (ABS) accessed through Global Trade Tracker (GTT) (see graph) . The record export number was the result of a larger cattle herd, high slaughter rates and favourable weather conditions, while growing demand from the biofuels sector has also helped boost exports. Domestic cattle slaughter rates stood at 2.24mn head in July-September, the highest since the same period in 2015, because of processors' concerted effort to increase capacity. Australia's beef production hit a record high in July-September at 690,694t, according to ABS data. Over 90pc of Australian tallow was exported to either Singapore or the US in the first 11 months of the year, with each country receiving 53.2pc and 37.6pc respectively, according to GTT data. Market participants have indicated Australian tallow trade flows may swing towards the US this year because of the newly released guidance on the 45Z tax credit in the country. Prices for lower carbon intensity feedstocks like tallow increased following the new guidance, while imported used cooking oil will not qualify for the tax credit. By Tom Woodlock Australian tallow exports (t) Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Global Li-ion battery shipments rise in 2024: EV Tank

25/01/06

Global Li-ion battery shipments rise in 2024: EV Tank

Beijing, 6 January (Argus) — Global shipments of electric vehicle (EV) power batteries and energy storage batteries surged in 2024, and could continue growing until 2030, according to Chinese research institution EV Tank. Global EV power battery shipments increased by 22pc on the year to 1,051GWh in 2024. This was mainly driven by continued rises in China's EV sales, which were supported by government incentives such as old vehicle trade-in subsidies, outpacing a slowdown in European and US markets caused by weakening economies and rising inflation. Global shipments of energy storage batteries rose by 65pc over the same period to 370GWh, supported by China's government-led promotion of energy storage systems in wind and solar industries, falling manufacturing costs, as well as firm physical demand in the US and effects from its investment tax credit. GWh-level orders from some emerging markets such as UK, Saudi Arabia and Australian also grew over 2024. Global total shipments of lithium-ion batteries increased by 29pc from a year earlier to 1,545GWh in 2024, including 1,215GWh in China that rose by 37pc on the year and accounting for 79pc of the total. Continued demand growth in China and the country's elevated investment in overseas production boosted global shipments. EV Tank forecasts global lithium-ion battery shipments will rise to 1,899GWh in 2025 and 5,127GWh in 2030. It also estimates China's shipments of sodium-ion battery shipments to more than double to 2GWh in 2024 from 0.7GWh in 2023. But this was far below earlier expectations of 3 GWh/yr, because of higher manufacturing costs for sodium-ion batteries compared with ternary and lithium iron phosphate lithium-ion batteries and lead-acid batteries. Consecutive falls in lithium carbonate feedstock prices in the past couple of years, mainly caused by rapid supply expansions, have reduced manufacturing costs for lithium-ion batteries. Current average manufacturing costs for lithium-ion batteries fell to 0.50 yuan/Wh as of June 2024, lower than Yn0.60/Wh for the sodium-ion battery, according to EV Tank. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Viewpoint: US tax fight next year crucial for 45Z

24/12/23

Viewpoint: US tax fight next year crucial for 45Z

New York, 23 December (Argus) — A Republican-controlled Congress will decide the fate next year of a federal incentive for low-carbon fuels, setting the stage for a lobbying battle that could make or break existing investment plans. The 45Z tax credit, which offers greater subsidies to fuels that produce fewer emissions, is poised to kick off in January. Biofuel output has boomed during President Joe Biden's term, driven in large part by west coast refiners retrofitting facilities to process lower-carbon fats and oils into renewable diesel. The 45Z tax credit, created by the 2022 Inflation Reduction Act (IRA), was designed to extend that growth. But Republicans will soon control Washington. President-elect Donald Trump has dismissed the IRA as the "Green New Scam", and Republicans on Capitol Hill, who had no role in passing Biden's signature climate legislation, are keen to cut climate spending to offset the steep cost of extending tax cuts from Trump's first term. Biofuels support is a less likely target for repeal than other climate policies, energy lobbyists say. But Republicans have already requested input on 45Z, signaling openness to changes. Republicans plan to use the reconciliation process, which enables them to avoid a Democratic filibuster in the Senate, to extend tax breaks that are scheduled to expire in 2025. "I want to place our industry in a place to make sure that the biofuels tax credit is part of reconciliation," said Kailee Tkacz Buller, president of the National Oilseed Processors Association. But lawmakers "could punt the biofuels discussion if stakeholders aren't aligned." A decade ago, biofuel policy was a simple tug-of-war between the oil and agriculture industries. Now many refiners formerly critical of the Renewable Fuel Standard produce ethanol and advanced biofuels themselves. And the increasingly diverse biofuels industry could complicate efforts to present a united front to Congress. Farm groups worry about carbon intensity scoring hurting crop demand and have lobbied to curtail record-high feedstock imports, to the chagrin of some biorefineries. Those producers are no monolith either: Biodiesel plants often rely more on local vegetable oils, while ethanol producers insist on keeping incentives that do not discriminate by fuel type and some oil majors would back subsidizing fuels co-processed with petroleum. Add airlines into the picture, which want greater incentives for aviation fuels, and marketers frustrated by 45Z shifting subsidies away from blenders — and the threat of fractious negotiations next year becomes clear. There are options for potential compromise, according to an Argus analysis of comments submitted privately to Republicans in the House of Representatives, as well as interviews with energy lobbyists and tax experts. The industry, frustrated by the Biden administration's delays in clarifying 45Z's rules, might welcome legislative changes that limit regulatory discretion regardless of what agency guidance eventually says. And lobbyists have floated various ways to appease agriculture groups without kneecapping biorefineries reliant on imports, including adding domestic content bonuses, imposing stricter requirements for Chinese-origin used cooking oil, and giving preference to close trading partners. Granted, unanimity among lobbyists is hardly a priority for Republican tax-writers. Reaching any consensus in the restive caucus, with just a handful of votes to spare in the House, will be difficult enough. "These types of bills always come to down to what's the most you can do before you start losing enough votes to pass it," said Jeff Navin, cofounder of the clean energy advocacy firm Boundary Stone Partners and a former House and Senate staffer. "Because they can only lose a couple of votes, there's not much more beyond that." And the caucus's goal of cutting spending makes an industry-wide goal — extending the 45Z credit into the 2030s — even more challenging. "It is a hard sell to get the extension right away," said Paul Winters, director of public affairs at Clean Fuels Alliance America. Climate costs Cost concerns also make less likely a simple return to the long-running blenders credit, which offered $1/USG across the board to biomass-based diesel. The US Joint Committee on Taxation in 2022 scored the two-year blenders extension at $5.5bn, while pegging three years of 45Z at less than $3bn. An inconvenient reality for Republicans skeptical of climate change is that 45Z's throttling of subsidies based on carbon intensity makes it more budget-friendly. Lawmakers have other reasons to not ignore emissions. Policies elsewhere, including California's low-carbon fuel standard and Europe's alternative jet fuel mandates, increasingly prioritize sustainability. The US deviating from that focus federally could leave producers with contradictory incentives, making it harder to turn a profit. And companies that have already sunk funds into reducing emissions — such as ethanol producers with heavy investments in carbon capture — want their reward. Incentives with bipartisan buy-in are likely more durable over the long run too. Next time Democrats control Washington, liberals may be more willing to scrap a credit they see as padding the profits of agribusiness — but less so if they see it as helping the US decarbonize. By Cole Martin Tax credit changes 40A Blenders Tax Credit 45Z Producers Tax Credit $1/USG Up to $1/USG for road fuels and up to $1.75/USG for aviation fuels depending on carbon intensity For domestic fuel blenders For domestic fuel producers Imported fuel eligible Imported fuel not eligible Exclusively for biomass-based diesel Fuels that produce no more than 50kg CO2e/mmBTU are eligible Feedstock-agnostic Carbon intensity scoring incentivizes waste over crop feedstocks Co-processed fuels ineligible Co-processed fuels ineligible Administratively simple Requires federal guidance on how to calculate carbon intensities for different feedstocks and fuel pathways Expiring after 2024 Lasts from 2025 through 2027 Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US Congress passes waterways bill

24/12/19

US Congress passes waterways bill

Houston, 19 December (Argus) — The US Senate has passed a bipartisan waterways infrastructure bill, providing a framework for further investment in the country's waterways system. The waterways bill, also known as the Water Resources and Development Act (WRDA), was approved by the Senate in a 97-1 vote on 18 December after clearing the US House of Representatives on 10 December. The WRDA's next stop is the desk of President Joe Biden, who is expected to sign the bill. The WRDA has been passed every two years, authorizing the US Army Corps of Engineers (Corps) to undertake waterways infrastructure and navigation projects. Funding for individual projects must still be approved by Congress. Several agriculture-based groups voiced their support for the bill, saying it will improve transit for agricultural products on US waterways. The bill also shifts the funding of waterways projects to 75pc from the federal government and 25pc from the Inland Waterways Trust Fund instead of the previous 65-35pc split. "Increasing the general fund portion of the cost-share structure will promote much needed investment for inland navigation projects, as well as provide confidence to the industry that much needed maintenance and modernization of our inland waterway system will happen," Fertilizer Institute president Corey Rosenbusch said. The bill includes a provision to assist with the damaged Wilson Lock along the Tennessee River in Alabama. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US Army Corps proposes new Illinois River lock

24/12/18

US Army Corps proposes new Illinois River lock

Houston, 18 December (Argus) — The US Army Corps of Engineers (Corps) has proposed a new lock to replace the LaGrange Lock and Dam (L&D) near Beardstown, Illinois, as part of the Navigation and Ecosystem Sustainability Program (NESP). The project would be the first new lock for NESP, a program that invests in infrastructure along the Mississippi and Illinois rivers. The new 1,200ft proposed LaGrange Lock would allow for passage of more barges in a single lockage, instead of having to split the tow in two with the current 600ft LaGrange Lock. At the moment, most tows trying to pass through the LaGrange lock experience multiple hour delays. The new LaGrange lock would have an estimated cost of $20mn, with a construction timeline of five years. The project area would be located on the west bank of the Illinois River near the 85-year old LaGrange L&D, encompassing 425 acres. Real estate acquisition, design plans and contractors are already in place, said the Corps. The current LaGrange lock would remain in operation and become an auxiliary chamber. The Corps opened the upcoming project to public comments on 11 December and will close on 3 January. NESP has four other projects along the Mississippi River. Another full lock construction project is anticipated for Lock and Dam 25. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more