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&#**; demand recovery was firm-to-steady, generating incremental crude tall oil derivative demand pressure
• August-September bulk purchasing activity witnessed inventory build prior to Q* production schedules and administrative deadlines

Nordic biofuel initiatives were the topmost driver of crude tall oil demand in ****, 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 $*,*** in June to $*,*** in September, with derivatives reflecting attendant strength. Finnish biorefineries&#**; 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.