This exclusive update delivers a concise overview of the fatty acids and alcohols markets, sharing insight into:
- Palm and lauric oil prices, analysis and outlook
- Glycerine quarterly contracts, supply & demand discussion and trade flow analysis
- Fatty alcohols quarterly outlook trends and in depth trade analysis
- Fatty acids price outlook, trade data and feedstock analysis
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EU deforestation traceability system to launch in Nov
EU deforestation traceability system to launch in Nov
Clarification: Paragraphs one, three and four have been changed to clarify the implementation deadlines for the EU deforestation regulation, after it was established that the expert's initial interpretation of the deadlines mischaracterized the situation. Argus published a clarification on 28 June 2024 with more details. London, 30 April (Argus) — The European Commission is set to unveil an information system to help with the implementation of the EU deforestation regulation (EUDR) in November, but different implementation deadlines for larger and smaller firms may constitute trading barriers in the interim for certain wood categories, the senior policy officer at industry association Bioenergy Europe, Daniel Reinemann, told the Argus Biomass Conference. The Due Diligence Statements (DDS) information system will provide a "due diligence statement number and [companies] link it" with the product they are producing and selling to trace the origin of products throughout the supply chain, as required by the EUDR, Reinemann said at last week's conference. Mandatory due diligence under the EUDR for operators and traders selling and importing wood products — among other commodities — into the EU will apply from 30 December 2024 for operators of wood products covered by the EUTR (EU Timber Regulations), applying to all operators, including small and medium-sized enterprises (SMEs). However, EUDR expands the scope of wood products that are covered and SMEs producing these new products will have until the end of June 2025 to come into compliance with the new legislation. These products include among others wood charcoal, wood wool, wood flour, tools and handles, kitchen and tableware made of wood, and other wood products. The different implementation start dates may result in challenges for trading between the two company sizes for the affected wood categories, Reinemann said. For instance, a small operator selling such products to a large company would have different levels of requirements to meet in the first half of 2025 when the small operator will not be obliged to meet EUDR requirements, he said. Some operators that lack the logistical and cost capacity to meet the EUDR requirements may decide to exit the market, but "realistically, we do not know how significant that share is", Reinemann said. The US Department of Agriculture (USDA) has previously commented on concerns over the implementation of this regulation, arguing that it could limit US wood product exports to Europe. Despite the challenges surrounding implementation of the EUDR regulation, "the accountability [it will require operators to have] will give [the public] a lot more faith in the system", Reinemann said. "The regulation will primarily impact forest owners as feedstocks are the first to be targeted," Bioenergy Europe policy director Irene di Padua said in an interview in February. The EUDR will apply to imports of cattle, cocoa, coffee, oil palm, soya, rubber, wood and their derived products to the EU. By Hannah Adler Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Brazil gum turpentine exports down in 2023
Brazil gum turpentine exports down in 2023
London, 9 April (Argus) — 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 Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Malaysia's February palm oil exports, stocks hit lows
Malaysia's February palm oil exports, stocks hit lows
Singapore, 11 March (Argus) — Malaysian palm oil exports fell to a three-year low in February, along with lower production and a drop in stocks to a seven-month low. Palm oil exports fell by 25pc on the month to 1.02mn t in February, the lowest level since February 2021, according to the Malaysian Palm Oil Board (MPOB). Purchases from price-sensitive countries have fallen as the price discount for palm oil has narrowed compared with rival soft vegetable oils. Average crude palm oil prices delivered to Indian ports rose to $911/t cif in January from $883/t cif in December 2023, while crude soybean oil prices fell to $939/t cif from $976/t cif over the same period, according to the Solvent Extractors' Association of India. Malaysian palm oil inventories also dropped by 5pc on the month to a seven-month low of 1.92mn t in February, falling below the 2mn t threshold for the first time since July 2023, MPOB data show. Market participants look to Malaysia's monthly palm oil stock levels as a gauge for price direction. Malaysia is the world's second-biggest palm oil producer. A drop in production contributed to the export and stock declines. Crude palm oil (CPO) production fell by 10pc on the month to 1.26mn t in February, although output was stable from a year earlier. The month-on-month decline was mainly driven by lower production in the east Malaysian states of Sabah and Sarawak, which are the country's largest palm oil producers. Output fell by nearly 15pc each in Sabah and Sarawak from January to 291,000t and 276,000t respectively. Palm kernel production fell by 12pc on the month to 302,000t in February, while output of crude palm kernel oil fell by 14pc to 139,000t, the MPOB said. Tight palm oil supplies will likely support palm oil prices at relatively high levels over the next three months, analysts forecast last week. Malaysian exports of biodiesel also fell by 28pc on the month to 29,400t in February. Outbound trade of oleochemicals rose to 255,000t, 1pc higher from January, but palm kernel oil exports fell by 19pc on the month to 55,600t in February. By Lauren Moffitt Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Brazilian pine chemicals group buys Portugal’s Pinopine
Brazilian pine chemicals group buys Portugal’s Pinopine
London, 8 March (Argus) — A Brazilian pine chemicals group has agreed to acquire Pinopine, a Portuguese gum rosin derivatives producer, sources in Brazil and Europe told Argus . Grupo Resinas Brasil (RB), a large Brazilian pine chemicals producer, will probably own an undisclosed, controlling stake in Portugal-based derivatives manufacturer Pinopine, sources said. The deal has already been communicated to Pinopine employees in Portugal, sources familiar with the transaction said. The details of the deal were not disclosed and neither company returned requests for comment. Sources in Brazil and southern Europe said the transaction would give Grupo RB competitive logistics access to the main European consuming regions as Pinopine is located in the Portuguese coastal city of Aveiro, near Porto. Portugal is a key importer of gum rosin from Brazil, which is mainly used as a feedstock for the production of gum rosin esters. Grupo RB also owns Luresa Resinas, a Spanish pine chemicals and derivatives producer. In 2022 the group acquired Barcelona-headquartered gum base supplier Cafosa . Gum base is used as one of the main components for the manufacture of chewing gum. Grupo RB is a Brazilian pine oleoresin, gum rosin, gum turpentine and derivatives producer. Pinopine is a gum rosin derivatives producer. By Leonardo Siqueira Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
