CST and CTO : Global Overview Michel Baumassy , Forchem Oy Portuguese Rosin History
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2018 PCA international Conference September 16-18 Lisbon/Portugal CST and CTO : Global Overview Michel Baumassy , Forchem Oy Portuguese Rosin History • Y1475 : Earl of Vila Real was granted a license to operate the Leiria pine tree forest and collect the rosin extracts mainly for Naval Store. • Y1790: At the demand of Marquis of Pombal the first ovens ( Ragusa/Sicily type) were installed to produce Pine Resin. (Replaced in Y1822 by cylindrical metal ovens) • Second half of 19th century: Tree tapping techniques imported from the South of France. • Sebastiao Bethamio de Almeida (1817-1864) ( Chemistry Teacher) and Bernardino José Gomes (1817-1890) (Forest Authority of Marinha Grande) at the origin of the Rosin industry in Portugal. • Y1861/1862: Building of the first ‘modern’ plant in Marinha Grande (Leiria) to produce Rosin and Turpentine . 1st Portuguese Rosin factory (1861-1914) Marinha Grande 1st Portuguese Rosin factory (1861-1914) Marinha Grande Gum Rosin and Turpentine Metric Tons Production in Portugal 120000 100000 80000 1935 60000 1975 40000 2018 20000 0 Rosin Turpentine Y2018 Gum Turpentine Production: 145 000T ROW 14% Indonesia 7% China 55% Brazil 24% Y2018 CST Production: 205 000 T* 3-5 Kg / T Softwood Kraft Pulp ROW, 8% North America, 59% Europe/Russia , 33% *Including 20 000 T ? CST from CTO Y2018 World CST fractionation capacity 245 000 T (Capacity in use: 205 000T) France 50 000 T (1 plant) USA 140 000 T (4 plants) India 30 000 T (1 plant) ROW 25 000 T 3 plants , CHL,NZL,RUS) Y2018 Turpentine Demand (Total Turpentine Production 350 000 T) France 40 000 T USA 120 000 T China 90 000 T India 60 000 T ROW 40 000 T Turpentine Main Components Average Composition (%) Alpha Pinene Beta Pinene Delta 3 Carene China / P.Massoniana 80 7 China / P.Elliottii 52 36 China / P.Yunanensis 60 25 Brazil/P.Elliottii 40 45 Brazil /P.Tropical 80 5 Indonesia /P.Merkusii 80 2 12 Portugal 75 17 India 25 3 60 USA (South East) 62 25 USA (NW)/Canada 30 10 20 Finland/Sweden/Russia 55 4 25 Austria 60 13 15 CST: Sulfur compounds 1 – 5 % Y2018 CTO Production : 2 Million T 40-60 Kg / T Softwood Kraft Pulp ROW, 9% North America, 49% Europe/Russia , 42% Y2018 CTO Demand / Market Segment Other uses, 9% Biofuels, 12% Fractionation, 79% Y2018 World CTO fractionation capacity 1.8 Million T (Capacity in use: 1.5 Million T) Europe 0.8 MT Russia 0.16 MT 6 Plants 4 (5) Plants USA 0.7 MT Japan China 5 Plants 1 Plant 2 (3) Plants CHN/JPN/NZL/ZAF 0.14 MT South Africa 1 Plant New Zealand 1 MT = 1 Million Metric T 1 Plant CTO Exports from USA Y2017:110 Million USD / 250 000 T (Y2016:100 Million USD / 205 000 T) Sweden 32 M USD (25 M USD) Finland 26 M USD (30 M USD) France 11 M USD Japan 27 M USD (7 M USD) (30 M USD) USA China 8 M USD (4 M USD) South Africa 5 M USD (3.6 M USD) Source: Customs statistics Million USD : M USD Y2017 (Y2016) CTO Other Main Exports Sweden Finland 18 M USD (11 M USD) Finland Sweden 4 M USD (7 M USD) Finland 11 M USD (5.5 M USD) Russia Poland Canada AUT/FIN 3 M USD (3 M USD) Spain France 2 M USD (2 M USD) Austria 8 M USD (7 M USD) USA 3 M USD(5 M USD) Germany FRA/SWE/FIN 5 M USD (5 M USD) Source: Customs statistics Million USD : M USD Pulp And CTO Developments . 2015/2020 : 4 Billions USD invested in pulpmills in Finland and Sweden resulting in additional 150 000 T CTO • New pulp mills projects in Brazil , USA and Russia • Hengan International , Chinese tissue giant acquires stake in Finnpulp/Finland • Y2021 : CTO demand for biofuels will increase • SCA/St1 partnership to build a new facility to produce biofuels using 100 000 T CTO (planned to be operational in 2021) • SunPine planning a 50% capacity increase (operational in 2020) Y2018 Global TOFA Production: 460 000 T China, 2% Others, 3% Austria, 2% Japan, 4% France, 4% Sweden, 14% USA, 38% Russia, 9% Finland, 24% Y2018 Global Rosin Production: 1 240 000T Gum Rosin production increasing Wood Rosin, 1% Tall Oil Rosin, 36% Gum Rosin, 63% Y2018 Global Tall Oil Rosin (TOR) Production: 450 000 T Y2020 : Min +15 000T China, 2% Others, 2% Austria, 2% Japan, 4% France, 5% Sweden, 16% USA, 47% Russia, 6% Finland, 16% Y2018 Global Resin Production : 2 610 000 T Hydrocarbon resins becoming commodities Terpene resins facing high feed costs Terpene Resins, 3% Hydrocarbon Resins , 50% Rosin, 47% From Dieselgate to Dieselcrash Europe Millions of vehicles (Cars/LUV) Forecasts 100% Electrical (Batteries) Plug-in Hybrids Hybrids Gasoline Diesel Source: AlixPartners European Diesel Market Share (Cars/LUV) Forecast 2030 France Italy United Kingdom Germany 2015:Volswagen Dieselgate Crude Talloil A Scarce and Renewable Product • CTO industry : More than 100 years old • Sustainable , non-subsidized bio-based industry • Bio-diesel production out of CTO : Destroying a precious resource • Dieselgate : Diesel technology questioned in many countries Possible ban of diesel cars in European cities ( Paris 2020 ?) • Diesel for Trucks : Possible breakthrough of other technologies ? • Fractionating CTO and upgrading the obtained products following the principle of cascading is the most efficient and intelligent way of using CTO. Outlook for the Pine Chemical market • High demand for CST and Gum Turpentine from the flavor/fragrance ,solvent and resin industries … but cost considerations might force users to switch to alternative products. (D Limonene production from Citrus industry affected by climatic conditions and diseases in Brazil and Florida) • Hydrocarbon resins becoming commodities and affecting rosin demand • Tofa demand remaining high . Production only 0.5 MT compared to other vegetable oils ( Palm oil 70 MT , SBO 55 MT…) • Pine Chemical market growing at a higher rate than average GDP growth and demand driven by Asia. • Growing environmental concerns will favour Pine Chemicals. .