Soaring Tall Oil Prices in the US Muddle Global Market Sentiments
- 06-Jan-2023 12:04 PM
- Journalist: Francis Stokes
USA: The price of Tall Oil in the US market is rising because of an increase in demand from various end-use sectors such as paper, paint, varnish, linoleum, drying oils, emulsions, lubricants, and soaps. High raw material prices and low domestic market stocks both contribute to the price increase. Furthermore, prices increased in the US due to high European demand and limited inventories available.
During the first week of January 2023, the price of Tall Oil has grown by 10.9%, according to the ChemAnalyst database, supported by a severe winter storm that caused Christmas turmoil for millions of Americans, and it will take a long time to pass. Furthermore, some parts of the eastern US still continue to be in a deep freeze, which will cause industrialists considerable problems with the trade of Crude Tall Oil as a result of the extreme weather left thousands of shipments canceled and the traders' goods stockpiles stranded over the weekend, which led to an increase in port congestion. Furthermore, more than 200,000 people in many eastern states awoke on Christmas morning without electricity. In addition, the city's international airport is still closed, and all of Erie County is still subject to a driving prohibition.
Some of the major transportation routes in the country, including Interstate 70 across the country, had to be temporarily shut down due to road ice and white-out conditions. Tall Oil is a thick yellow-black odorous liquid produced as a by-product of the kraft process of wood pulp. The heavy snow freezing caused a drop in the output of Crude Tall Oil from the industries due to a delay in the kraft process.
ChemAnalyst forecasts that a spike in demand from numerous industrial sectors will raise the price of Tall Oil in the coming months. Additionally, as the US is a significant exporter of Tall Oil globally, the harsh winter weather is affecting exports of commodities and Tall Oil domestically and internationally.