Kraton Corporation announced on 17 February a general price increase of 10% across its entire pine chemicals and alpha methyl styrene (AMS) resins effective immediately. In January 2021, the company also raised its tall oil fatty acid (TOFA) price by up to 10%. The price increase is reportedly because of competitive factors within the pine chemicals space as well as based on price-setting mechanisms cause by inflationary pressures seen in the vegetable oil-based fatty acids market where TOFA competes in.
According to the company’s Q1 2021 and full year 2020 earnings results, lower revenue for its chemical segment in 2020 was driven by lower pricing in the crude sulfate turpentine (CST) chain and lower average selling prices for rosin esters related to the oversupply of low-cost hydrocarbon tackifiers in Asia. Sales for TOFA and TOFA derivatives were also down in 2020 due to lower demand driven mostly by the COVID-19 pandemic especially during Q2 2020. For 2021, Kraton noted that it is seeing favourable trends in TOFA, tall oil rosin (TOR) and CST chain as demand in the industrial sector is now coming back.
According to the company’s Q1 2021 and full year 2020 earnings results, lower revenue for its chemical segment in 2020 was driven by lower pricing in the crude sulfate turpentine (CST) chain and lower average selling prices for rosin esters related to the oversupply of low-cost hydrocarbon tackifiers in Asia. Sales for TOFA and TOFA derivatives were also down in 2020 due to lower demand driven mostly by the COVID-19 pandemic especially during Q2 2020. For 2021, Kraton noted that it is seeing favourable trends in TOFA, tall oil rosin (TOR) and CST chain as demand in the industrial sector is now coming back.