The TOFA Price Trend in South Korea in Q2 2026 showed a steady increase followed by a noticeable correction in June. Tall Oil Fatty Acid (TOFA) is an important raw material used in several industrial applications, including lubricants, oleochemicals, coatings, and other chemical products.
Changes in raw material costs, energy prices, transportation expenses, and buying activity can directly influence its market price. During the second quarter of 2026, these factors played an important role in shaping the South Korean TOFA market.
Rising costs at the US origin gradually affected import prices in South Korea, while demand from lubricant and oleochemical manufacturers continued to support the market. However, the price correction in June showed that buyers were becoming more careful after several weeks of increases.
Understanding the TOFA Prices, price index, market movements, and future outlook can help buyers, distributors, and industrial users make better purchasing decisions.
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Understanding the TOFA Market in South Korea
Tall Oil Fatty Acid is a fatty acid material obtained from tall oil, which is associated with the wood pulping industry. It is used in different industrial processes because of its useful chemical properties. Depending on the grade and application, TOFA can support the production of lubricants, coatings, adhesives, and other oleochemical products.
South Korea relies on imported TOFA for the market covered in this report. As a result, international price movements can have a direct impact on domestic purchasing costs. The price of imported material depends not only on the product's original selling price but also on freight, insurance, handling, and other import-related expenses.
For South Korean buyers, the delivered cost is especially important. Even when the price at the exporting location changes only moderately, additional logistics expenses can make the final import price more expensive. This is why the TOFA market needs to be understood through both international supply conditions and local buying activity.
During Q2 2026, the market experienced this combination of external cost pressure and steady industrial demand. Prices moved higher through much of the quarter before declining in June.
TOFA Price Trend South Korea in Q2 2026
The TOFA Price Trend South Korea recorded an increase of approximately 5.89% for the Rosin Content 2–3% grade during Q2 2026. Meanwhile, the Rosin Content 1% grade increased by around 4.59%.
These figures indicate that both monitored grades became more expensive during the quarter. However, the increase was slightly stronger for the 2–3% Rosin Content grade. This difference is important for buyers who purchase specific grades for different production requirements.
One of the main reasons behind the increase was the rise in feedstock and energy costs at the US origin. Geopolitical tensions involving the United States, Israel, and Iran contributed to uncertainty in energy markets and increased pressure on procurement and transportation costs. These changes affected the economics of producing and exporting TOFA.
As US-origin prices increased, the impact gradually reached the South Korean import market. Higher export costs were reflected in the cost of material delivered to Busan, the import pricing location covered in this market assessment.
Demand also played a supporting role. Buyers in the lubricant and oleochemical sectors continued to require TOFA for their industrial activities. When demand remains steady while production and transportation costs rise, sellers generally face less pressure to reduce prices immediately.
The result was a firm market throughout much of Q2 2026, although the price increases were more moderate than those recorded in some other monitored markets.
Why Did TOFA Prices Increase in South Korea?
Several factors contributed to the upward movement in South Korean TOFA prices during the second quarter.
1. Higher feedstock costs
Feedstock costs are an important part of the overall cost of producing chemical materials. When the cost of obtaining raw materials rises, producers may need to adjust their selling prices to maintain workable production economics.
During Q2 2026, increased feedstock procurement costs at the US origin contributed to higher TOFA export valuations. Since South Korea's monitored market was based on imported material from the United States, this increase gradually passed through to import prices.
2. Rising energy expenses
Energy is required for industrial production, processing, and transportation. Higher energy prices can therefore affect several stages of the supply chain.
Geopolitical uncertainty during the quarter placed additional pressure on energy-related costs. These expenses contributed to the upward movement in US-origin TOFA prices and subsequently affected the cost of imports into South Korea.
3. Transportation and import costs
International freight is another important factor in the South Korean TOFA market. Imported products must travel from the exporting location to the destination port, and changes in shipping expenses can influence the final delivered price.
When freight costs increase, importers may need to pay more even if the underlying product price remains relatively stable. In Q2 2026, broader logistics pressure added to the cost burden faced by buyers.
4. Consistent industrial demand
Demand from lubricant and oleochemical manufacturers helped support prices during the quarter. Industrial buyers need a regular supply of raw materials to maintain production schedules and meet customer requirements.
When purchasing needs remain steady, buyers may continue to procure material despite higher prices. This demand helped prevent the market from weakening significantly during the main period of price increases.
Grade-Wise TOFA Price Movement
The Q2 2026 market data showed different levels of price growth across the two monitored grades.
The Rosin Content 2–3% grade recorded a quarterly increase of approximately 5.89%. The Rosin Content 1% grade increased by around 4.59%.
The difference between the two grades was 1.30 percentage points. This suggests that the higher rosin-content grade experienced a stronger increase during the quarter.
For buyers, grade selection remains an important part of cost management. However, purchasing decisions should not be based on price alone. Product specifications, application requirements, consistency, and suitability for the intended production process also need to be considered.
A lower-priced grade may not always be the most economical choice if it does not meet the technical requirements of the final product. Similarly, a more expensive grade may offer better value when it matches the required production specifications.
Monitoring both grades separately can therefore help procurement teams understand changes in input costs more clearly.
TOFA Price Chart: What the Q2 2026 Movement Shows
A TOFA Price Chart provides a simple way to understand how prices change over time. For South Korea, the Q2 2026 movement can be divided into two main stages: an increase during the quarter followed by a correction in June.
The first stage reflected rising feedstock and energy costs, higher logistics expenses, and steady demand from industrial buyers. These factors pushed import prices upward and kept the market firm.
The second stage occurred in June, when prices moved lower as buyers reduced or moderated their purchasing activity after the earlier increase. The correction also reflected the adjustment in US-origin prices, which passed through to South Korean import valuations.
For the Rosin Content 2–3% grade, prices declined by approximately 4.77% in June. For the Rosin Content 1% grade, the decrease was around 4.13%.
These monthly declines show that upward price pressure did not continue without interruption. Buyers became more cautious after the earlier increases, and the market started to adjust.
It is important to understand that a correction does not necessarily mean the market has entered a long-term downward trend. Prices can decline for a short period while remaining higher than their earlier levels. The overall direction depends on the balance between supply costs, demand, and purchasing behaviour.
For businesses following the market, a TOFA Price Chart should ideally track both grades separately and distinguish between quarterly changes and monthly movements. This approach gives a clearer picture of price volatility and helps avoid misleading conclusions based on a single month's data.
TOFA Price Index and Its Importance
The TOFA Price Index helps buyers understand the general direction of the market over a specific period. It can be used to assess whether prices are rising, falling, or remaining relatively stable.
During Q2 2026, the South Korean TOFA market showed an upward trend, supported by higher costs at the US origin and continued demand from industrial consumers. The June correction indicated that market conditions had become more balanced as buyers moderated procurement.
For procurement managers, an index can be useful when comparing current market conditions with previous periods. It can also help businesses review supplier quotations, monitor budget changes, and evaluate the timing of future purchases.
However, an index should not be viewed in isolation. Different grades, supply origins, freight arrangements, and delivery terms can produce different final costs. A market index provides a broad indication of price direction, while an individual buyer's actual purchase price depends on the terms of the transaction.
Combining the price index with grade-specific quotations and import cost information can provide a more complete understanding of the market.
How June 2026 Changed the Market Direction
June was an important month for South Korea's TOFA market because prices moved lower after the increases recorded during the quarter.
The Rosin Content 2–3% grade declined by around 4.77%, while the Rosin Content 1% grade fell by approximately 4.13%. The correction was linked to the adjustment in US-origin prices and a more cautious approach to purchasing.
This behaviour is common in commodity markets. When prices rise quickly, buyers may bring forward purchases to protect themselves against further increases. Once prices become elevated, they may reduce new orders, use existing inventory, or wait for clearer market signals.
Such decisions can reduce immediate buying pressure and contribute to a price correction.
For South Korean importers, June's decline offered some relief from the higher costs experienced earlier in the quarter. Nevertheless, businesses still needed to monitor international supply conditions because changes in energy prices, freight expenses, and feedstock availability could influence subsequent quotations.
The main lesson from June is that procurement decisions should consider both the broader quarterly direction and short-term changes in buying activity.
TOFA Price Forecast for South Korea
The TOFA Price Forecast for South Korea will depend on several important factors, including international feedstock costs, energy market conditions, freight rates, US-origin export prices, and demand from lubricant and oleochemical manufacturers.
The Q2 2026 data suggest that cost pressures remained an important influence on the market. At the same time, the June correction showed that buyers could respond to higher prices by moderating their purchasing activity.
If feedstock and energy costs remain elevated, imported TOFA prices may continue to receive support. Higher shipping expenses could also place additional pressure on delivered prices in South Korea.
On the other hand, if international costs ease and buyers continue to delay purchases, prices could experience further downward adjustments. A more comfortable supply situation or weaker industrial demand could also reduce upward pressure.
These possibilities should be treated as market scenarios rather than guaranteed outcomes. The available Q2 figures establish the direction of the market during that quarter but do not, by themselves, confirm the exact price movement for the following quarter.
For buyers, a practical approach is to monitor price quotations regularly, review inventory requirements, and avoid relying entirely on either rising or falling market expectations. Maintaining reasonable stock levels and comparing available supply options can help reduce exposure to sudden price changes.
What South Korean Buyers Should Watch
Businesses purchasing TOFA in South Korea can focus on a few practical indicators to understand future price movements.
First, monitor US-origin export prices because changes at the source can influence imported material costs. Second, keep track of feedstock and energy expenses, as these can affect production economics. Third, review freight costs and shipping conditions, which influence the final price delivered to Busan.
Buyers should also follow demand from lubricant, oleochemical, and related industrial sectors. Changes in purchasing activity can affect how quickly higher costs pass through the market or how strongly prices respond to a decline in international quotations.
Finally, compare the Rosin Content 1% and 2–3% grades separately. Their price movements were different in Q2 2026, and that difference may matter when planning budgets for specific applications.
A combination of regular market monitoring, supplier communication, and careful inventory planning can help businesses respond more effectively to changing conditions.
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About Price Watch™
Price Watch™ is an India-based, independent raw material price reporting agency that provides real-time price forecasts and data-driven insights into global raw material markets. Price Watch™ specializes in tracking raw material prices, analyzing market trends, and delivering timely updates on plant shutdowns, supply disruptions, capacity expansions, and demand-supply dynamics.
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