U.S.–China Trade Tariff Dispute (April 2025): In April 2025, escalating tariffs between the United States and China (reaching up to 125%) included oleochemicals like TOFA and its downstream derivatives. The costlier trade, along with extended shipment timelines and China’s curbs on certain industrial exports, contributed to instability in global TOFA flows, affecting availability and pricing.
Post-COVID Demand Revival in Alkyd Resins and Lubricants (2021–2022): As industrial and construction sectors reopened post-lockdown, demand for alkyd resins, lubricants, and adhesives (key applications of TOFA) rebounded sharply. However, with constrained logistics and limited vessel availability, TOFA shipments faced delays, causing regional shortages and sharp price movements, especially in Europe and India.
2020 Pine Chemical Supply Disruptions During Pandemic: The early stages of the pandemic saw disruptions in forestry operations and crude tall oil (CTO) extraction across North America and Scandinavia. Since TOFA is derived from CTO, supply tightness emerged just as hygiene and cleaning product demand surged. This mismatch led to heightened price sensitivity and frequent fluctuations in global markets.
European Environmental Directives & Green Labeling Push (2017–2018): The EU’s push for sustainable raw materials and stricter labeling norms created shifts in demand for bio-based chemicals like TOFA. While this encouraged wider adoption, it also pressured supply chains to adapt rapidly, tightening feedstock availability and pushing prices upward across industrial segments.
These events highlight the sensitivity of the Tall Oil Fatty Acid (TOFA) market to geopolitical tensions, weather disruptions, and shifts in supply-demand dynamics, underscoring the importance of monitoring global trends.