The Tall Oil Fatty Acid Price Trend moved upward across the major markets during Q2 2026, with higher feedstock, energy, freight, and logistics costs creating pressure across the supply chain. Tall Oil Fatty Acid (TOFA) is widely used in oleochemicals, lubricants, coatings, adhesives, and other industrial applications, so changes in production and transportation costs can quickly affect market prices.Β
During the quarter, Finland-origin material recorded some of the strongest increases, while USA-origin prices also moved higher at a steadier pace. However, the market did not continue rising throughout the entire quarter. June brought a noticeable correction as buyers became more cautious after prices had moved up sharply.
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The second quarter of 2026 was a period of changing cost conditions for the TOFA market. Prices generally increased from the beginning of the quarter, supported by higher crude tall oil feedstock costs and rising energy and logistics expenses.
The reported market movement shows that the increase was not exactly the same everywhere. The size of the rise depended on the origin of the material, the destination market, freight conditions, and the grade being traded.
Finland-origin prices recorded particularly strong growth. Saudi Arabia, which depends on imported material from Finland, recorded a quarterly increase of around 15% for the 2% rosin-content grade. India also experienced a strong increase in Finland-origin material.
USA-origin markets, meanwhile, recorded more moderate increases. Australia and South Korea followed the movement in USA FOB values as higher costs at the origin were passed through to import markets.
One noticeable feature of the quarter was the difference between grades. The 1% rosin-content grade generally recorded slightly smaller increases than the 2β3% grade in the markets where both grades were monitored.
Several cost factors worked together during Q2 2026.
The first was the increase in crude tall oil feedstock costs. Since feedstock is a key part of TOFA production, higher input costs put direct pressure on producers and sellers.
Energy costs were another important factor. Producing and processing industrial chemicals requires energy, and higher energy expenses can increase the overall cost of production.
Freight and logistics also became important, especially for international buyers. When transportation costs increase, imported material becomes more expensive even if the underlying product price does not change significantly.
The USA-Israel vs Iran conflict was identified in the supplied Q2 market data as a major factor behind higher energy, feedstock, freight, and logistics costs. These cost pressures were reflected first in origin markets and then passed into several importing regions.
At the same time, demand remained reasonably steady from industries such as oleochemicals, lubricants, coatings, and adhesives. This steady industrial demand helped keep the market supported even as costs increased.
The USA market recorded a moderate but clear increase during Q2 2026.
For the Rosin Content 2β3% grade, FOB Savannah prices increased by approximately 5.76% during the quarter. The 1% grade increased by around 4.41%.
The rise was linked to higher energy and feedstock procurement costs. As production economics became more expensive, FOB Savannah valuations moved upward through the quarter.
Demand also provided support. Buyers from the oleochemical and surface coating sectors continued to require TOFA, which helped maintain the upward price environment.
However, the market changed direction in June. USA Tall Oil Fatty Acid Prices declined by around 4.72% for the 2β3% grade and approximately 4.08% for the 1% grade.
This correction suggests that buyers became more careful after the earlier price increase. Instead of continuing to build inventory at higher prices, procurement activity became more measured.
Australia also recorded higher TOFA import prices during Q2.
CIF Melbourne prices for the 2β3% rosin-content grade increased by around 6.32%, while the 1% grade increased by approximately 4.97%.
Because Australia is dependent on imported material, changes in the USA export market were reflected in local import valuations. Higher FOB prices combined with transportation costs created additional pressure on delivered prices.
The Australian market remained elevated during much of the quarter because buyers had limited opportunities to reduce costs when imported material itself was becoming more expensive.
June brought a correction. Tall Oil Fatty Acid Prices declined by approximately 4.49% for the 2β3% grade and 3.90% for the 1% grade.
The decline was connected with the correction in the US-origin market, which then passed through to Australian import prices.
South Korea followed a similar pattern.
CIF Busan prices increased by approximately 5.89% for the 2β3% grade and 4.59% for the 1% grade during Q2 2026.
Higher feedstock and energy costs at the US origin contributed to the increase. These higher costs were eventually reflected in the import market.
Demand from lubricant and oleochemical buyers also helped keep prices supported. As long as industrial users continued purchasing material, there was a base level of demand beneath the market.
In June, however, prices corrected. The 2β3% grade declined by approximately 4.77%, while the 1% grade fell by around 4.13%.
The South Korean movement therefore shows how quickly an origin-market correction can affect an international destination market.
India was one of the more active markets during the quarter, particularly because both USA-origin and Finland-origin material were monitored.
USA-origin CIF Nhava Sheva prices increased by approximately 9.96% for the 2β3% grade and 8.56% for the 1% grade.
The increase was stronger than the movement recorded in the USA itself, showing the additional impact that import costs can have on destination pricing.
Finland-origin material recorded an even larger increase. The 2% rosin-content grade rose by approximately 14.78% during Q2.
The stronger movement in Finland-origin material was connected with higher Finnish FOB values together with increased freight and feedstock costs.
Indian demand remained firm from oleochemical and coating buyers. This steady consumption helped support the market despite the higher cost environment.
In June, Indian Tall Oil Fatty Acid Prices corrected across the monitored grades, generally declining by around 4% to 5% as corrections at both origins moved into the import market.
Finland recorded one of the strongest origin-market increases during Q2 2026.
FOB Port of Rauma prices for the 2% rosin-content grade increased by approximately 10.69% during the quarter.
Higher energy costs and more expensive feedstock procurement were important reasons behind the increase. As production costs rose, FOB export valuations moved higher.
Demand from oleochemical and adhesive applications also remained steady, giving sellers continued market support.
But June brought a change in buying behavior. Finland Tall Oil Fatty Acid Prices declined by around 4.52% as buyers moderated their procurement.
This correction is important when looking at the overall Q2 trend. The market experienced a strong rise during the quarter, but the final month showed that buyers were becoming more price-sensitive.
The Netherlands experienced a similar increase through Q2 2026.
FD Rotterdam prices for the 2% rosin-content grade increased by approximately 10.34%.
Higher energy costs and rising Finnish FOB prices contributed to the increase in domestic valuations. Since Finnish-origin material plays an important role in the regional supply picture, changes in Finnish export pricing had a direct effect on the Netherlands market.
Demand from oleochemical and lubricant sectors continued to support prices.
In June, however, the market corrected by around 4.75% as procurement activity slowed.
The Dutch market therefore reflected both sides of the quarter: strong cost-driven price increases followed by a buyer-led correction.
Saudi Arabia recorded the strongest quarterly increase among the monitored markets.
CIF Jeddah prices for Finland-origin TOFA with 2% rosin content increased by approximately 15.00% in Q2 2026.
The increase was driven by a combination of higher Finnish FOB prices and elevated freight costs. Since the material was imported from Finland, both the origin price and transportation expenses had a direct effect on the final delivered price.
Prices reached peak levels during the quarter as buyers absorbed the combined cost burden.
However, June again brought some relief. Saudi Arabia Tall Oil Fatty Acid Prices declined by around 4.05% as freight conditions eased and the Finnish origin market also corrected.
This market provides a clear example of how freight can amplify an increase in an international chemical market.
The Tall Oil Fatty Acid Price Chart for Q2 2026 can broadly be understood in three stages.
First, prices moved upward across most monitored markets as feedstock, energy, and logistics costs increased.
Second, the strongest gains appeared in markets connected with Finland-origin material, particularly Saudi Arabia and India.
Third, June showed a broad correction as buyers reduced or delayed procurement after the earlier run-up.
The chart therefore would not show a simple straight-line increase. Instead, it would show a strong upward movement followed by a noticeable decline toward the end of the quarter.
This pattern is useful for buyers because it highlights the importance of timing. A market can remain fundamentally supported while still experiencing short-term corrections.
The Tall Oil Fatty Acid Price Index remained supported during Q2 2026 because the main cost drivers continued to influence the market.
Feedstock costs, energy expenses, freight rates, and steady industrial demand all played a role in maintaining the higher price environment.
However, the June correction shows that the index should not be viewed as an indication that prices will rise every month. Market participants also respond to inventory levels, purchasing schedules, and affordability.
The Q2 movement suggests that cost inflation can lift the overall market, but buyer behavior can eventually create a correction when prices become too high.
Looking ahead from the Q2 2026 market picture, several factors are important for understanding the Tall Oil Fatty Acid price direction.
Feedstock costs will remain one of the most important variables. Any continued increase in crude tall oil costs could keep pressure on TOFA production costs.
Energy prices are another factor to watch. Higher energy expenses can quickly affect production economics.
Freight is particularly important for importing countries. Markets such as India, Australia, South Korea, and Saudi Arabia can experience additional price movement when transportation costs change.
Buyer behavior will also matter. The June correction across the monitored markets showed that buyers can reduce procurement when prices rise sharply. If purchasing remains cautious, further corrections can occur even when production costs remain relatively high.
On the other hand, steady demand from oleochemicals, lubricants, coatings, and adhesives can provide underlying support to the market.
For this reason, the Q2 data points toward a market that remains sensitive to both costs and purchasing decisions rather than one that moves in only one direction.
The Q2 2026 TOFA market provides several useful observations:
Tall Oil Fatty Acid prices increased across all monitored markets during the quarter.
Finland-origin markets recorded some of the strongest gains.
Saudi Arabia recorded an increase of around 15% for the monitored 2% grade.
Finland recorded an increase of approximately 10.69%.
The Netherlands recorded an increase of approximately 10.34%.
USA-origin prices increased more moderately, with the 2β3% grade rising around 5.76% in the USA.
The 1% grade generally recorded smaller gains than the 2β3% grade.
India experienced strong increases for both USA-origin and Finland-origin material.
Higher feedstock, energy, freight, and logistics costs were major factors behind the Q2 increase.
June brought a broad correction across the monitored markets.
Buyers became more cautious after the earlier price rise.
Demand from oleochemical, lubricant, coating, and adhesive industries continued to provide market support.
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