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Plunged Tall Oil Prices Ease the Global Market Sentiments

Plunged Tall Oil Prices Ease the Global Market Sentiments

Plunged Tall Oil Prices Ease the Global Market Sentiments

  • 21-Jul-2022 5:47 PM
  • Journalist: S. Jayavikraman

Tall Oil's price is decreasing in the global market during the second half of July due to the decrease in demand from the end-use industries such as paper, paint, varnish, linoleum, drying oils, emulsions, lubricants, and soaps. The price is declining due to high inventory in the domestic market of respective global regions.

In India, the price of Tall Oil decreased by 3% during the second half of July, owing to the decrease in demand from the downstream industries, including paper mills. The importance of Tall Oil is that the viscosity of this oily raw material can vary greatly. It can be used in its raw form or processed and used to produce numerous products such as soap, inks, and chemicals. So the demand from these downstream industries remains stable, and the amount of product in the domestic market is enough to feed the consumer needs. In India, Tall Oil is a major import from the USA, so the product price in the USA is decreased.

In China, Tall Oil price decreased by 2.7% during the second half of July, owing to the decrease in demand from the wood and pulp industries. The demand for Tall Oil is decreasing due to the less demand from downstream sectors for finalizing it in the value-added products. Moreover, apart from uses in oils, resins, and other industries, manufacturers are giving attention to Tall crude Oil, which is eco-friendly and cheaper in price, created as a by-product in the paper and pulp industries during the pulping process. Most Kraft pulping plants sell their waste streams to chemical businesses, which other method this waste into value-added products, so there is little demand in the domestic market.

In the USA, the price of Tall Oil decreased by 3.7% during the second half of June, owing to the decrease in global inflationary pressure. The product price decrease is due to high inventories present in the global market of the USA. Tall Oil is derived from pine and conifer trees and is important in manufacturing other commercial chemicals such as fatty acid esters, alkyd resins, and dimer acids. These chemicals are used in many industries, such as paints and coatings, soaps and detergents, lubricants, and plastics.

As per ChemAnalsyt anticipation, it is further estimated that the price of Tall Oil would further increase in the upcoming months due to an increase in demand from various industrial sectors.

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