Nordic Crude Tall Oil Demand Widens, as Biofuel Sector Strengthens

Key Highlights:

• Finnish biorefineries including UPM and Neste led structural demand gains for renewable diesel and SAF production feedstock needs
• Fractionation capacity constraints cut tall oil rosin and TOFA availability, contributing to pressure for feedstock
• Adhesives, coatings, and rubber markets&#xx; demand recovery was firm-to-steady, generating incremental crude tall oil derivative demand pressure
• August-September bulk purchasing activity witnessed inventory build prior to Qx production schedules and administrative deadlines

Nordic biofuel initiatives were the topmost driver of crude tall oil demand in xxxx, with Finland importing massive quantities for use in renewable diesel and sustainable aviation fuel. TOFA FOB Helsinki prices recorded mixed but directionally higher trend, rising from $x,xxx in June to $x,xxx in September, with derivatives reflecting attendant strength. Finnish biorefineries&#xx; long-term feedstock needs brought about structural demand increases that inclined sellers against offering substantial quantities of spot crude tall oil at prior price levels.