Tall Oil Prices Show Mixed Movements Across Key Markets in Q1 2026

Prices for tall oil, a byproduct of kraft pulping, exhibited mixed movements across key global markets during the first quarter of 2026. Markets in North America and Europe saw price increases, while regions in Asia and the Middle East experienced declines.

The global tall oil industry reached a volume of 2.43 million tons in 2025 and is projected to grow at a compound annual growth rate of 4.15% through 2034. Growth is attributed to expanding coatings and adhesives sectors, increased adoption of bio-based chemicals, and tightening mandates for renewable fuels in Europe.

In France, tall oil prices increased by 2.22% to $869 per metric ton, as formulators of coatings and buyers of adhesives accelerated procurement to address inventory shortfalls from the prior quarter. Supply-side production remained stable, but extended import lead times and higher inbound logistics costs shifted negotiation leverage towards sellers.

Conversely, markets in India, China, South Korea, and Turkey saw price decreases. India's prices fell 1.09% to $1,938/MT, China's by 1.12% to $1,266/MT, South Korea's by 1.45% to $2,459/MT, and Turkey's by 2.11% to $2,000/MT. In these regions, buyers maintained procurement at minimal levels, utilizing steady import availability to negotiate lower prices.