STRATEGIC SOURCING CONSIDERATIONS IN TACKIFIER/RESINS
Why Rosin Tackifier/resin users should develop alternative sourcing positions with an experienced, knowledgeable and well connected source able to supply a full range of gum and US tall oil rosin products:
- Increased demand for rosin-based tackifiers
- Changing dynamics in global rosin supplies (and why Teckrez uniquely offers Tall Oil (TO) Rosin as well as Gum Rosin based products)
- Gum Rosin: higher acquisition costs
- Tall Oil Rosin: increased availability for adhesives
Why is demand increasing?
In addition to modest adhesive growth in North America and Europe, there are several industry
dynamics responsible for even higher growth of rosin tackifiers:
- Increased Use of Polymers Favoring Rosin Tackifiers - tight isoprene supplies have limited availability and increased cost of SIS (Styrene-Isoprene-Styrene) resulting in increased usage/development of SBS and SIBS polymers (substituting polybutadiene for polyisoprene in mid-block). SIS polymers favor usage of petroleum-derived C5 hydrocarbon resins while increasing polybutadiene content favors rosin tackfiers.
- Hydrocarbon resin tightness - limited piperylene availability has resulted in tight C5 and C5/C9 resin supplies. This further promotes use of SBS/rosin type systems. Also, rosin esters overlap the polymer compatibility range of C5/C9 resins while providing superior adhesion.
WHAT ARE THE CHANGING DYNAMICS IN GLOBAL ROSIN SUPPLY?
TO rosin is projected to increase usage in adhesives due to improved availability as well as increased cost of acquiring Asian produced gum rosin.
- Gum rosin/resins increased acquisition costs are due to:
- Elimination of Chinese export tax credit and weakening of US$ vs. Chinese yuan (RMB)
- Increased demand in Asia for rosin tackifiers as alternatives to much more costly petroleum hydrocarbon resins and limited capacity for higher quality hydrocarbon resins.
- Energy related higher ocean and other freight costs.
- Increased % of Tall oil rosin available for adhesives
Rosin use in other major markets, printing inks and paper size, will continue to experience flat or declining growth trends largely due to impacts of electronic communications.
- Crude Tall Oil (CTO), while supply limited, is a stable source of rosin.
TO rosin is produced by refining CTO, a by-product of kraft sulfate paper making which is the predominant paper technology in North America and northern Europe. Supply is stable; growth is affected by the following plus (+) and minus (-) factors:
- Growing demand for packaging materials, particularly from renewable, non-petroleum sources (+)
- Increased global percentage of eucalyptus and other non-pine fiber sources for paper making (-)
- Increased recycling and electronic communications (-)
- Higher TO rosin production due to increased CTO refining.
Dramatic increases in demand for rosin’s tall oil co-products (addressing a historical problem for the industry) is leading to higher demand for CTO refining, more than offsetting demand from fuel markets:
- Tall Oil Fatty Acids (TOFA): dramatically increased demand and value in biofuels
- Tall Oil Pitch: strong demand for production of high value sterols for nutraceuticals; prior usage primarily as fuel
THE IMPLICATIONS are that customers should supplement gum rosin with tall oil rosin tackifiers and develop the flexibility to use both. HOWEVER, TO Rosin tackifier supplier options have been very limited due to:
- Entry barrier: integrated TO refining and tackifier production is advantageous for required quality and efficiencies
- Many TO rosin resin plant closures; five over last decade (US and Europe). No new capacity added
- Product ranges often very limited
Which leads us to………………………………………………………………………
How can Teckrez help?
Along with its extensive product range based on gum rosin, Teckrez now offers an increasing range of US produced Teckros TO rosin based tackifiers.
Through selection and collaboration with the highest quality gum and US TO based manufacturers, Teckrez offers a full range of rosin ester tackifiers including:
- Near water-white (Teckros® SL series)
- Standard (Teckros® R series)
- Hydrogenated (Teckros® H series)
- Dimerized (Teckros® D Series)
- Modified (Teckros® NC Series)
With in-depth understanding of the most suitable and cost effective grades for specific end use applications, Teckrez provides a needed resource and capability for customers looking to improve their strategic sourcing.
