Market for unrefined technical oil blends: offer, trade and application

Blends of unrefined technical oils are compositions of various vegetable oils that have not been refined. This means that they retain their natural components, such as phospholipids, waxes, fatty acids, as well as their specific smell and color. They can include canola, sunflower, soybean, flax, corn and other oils, in various proportions, depending on the intended use.

Unrefined technical oils, despite the lack of refining, have valuable properties. They are rich in natural compounds, such as antioxidants, which can benefit their use in various industries. The growing interest in the use of these oils is due to their unique properties, such as better lubricity, higher boiling point and biodegradability. The ability to modify the properties by selecting the appropriate oils in the blend allows for customization to meet specific needs.

MBF Group SA is a public company listed on the NewConnect stock exchange. It specializes in the wholesale trade of unrefined technical oils, such as rapeseed, sunflower and soybean oil. With a wide network of reliable suppliers in Eastern Europe and Asia, the company provides a stable supply of high-quality raw materials tailored to the requirements of customers in the biofuel, chemical and agricultural industries. MBF Group SA stands out for its transparency and professionalism in contract execution, offering comprehensive logistics services, certification and flexible terms of cooperation.

Introduction

Unrefined technical oils are vegetable oils that have not been refined, that is, purified from natural impurities such as phospholipids, free fatty acids, dyes and other substances. They can include a variety of oils, such as rapeseed, sunflower, soybean, flax, corn and others, depending on the purpose. These oils are characterized by a peculiar odor and color, resulting from the presence of natural ingredients.

The main difference between cooking oils and technical oils is the lack of a refining process for the latter. Cooking oils are refined to remove impurities and improve their taste, smell and shelf life. Technical oils, by virtue of their purpose, do not require such purification. They may contain more impurities, as well as potentially harmful substances that are removed during the refining of cooking oils.

Production of blends of unrefined technical oils

Production methods

Cold pressing and hot pressing: Cold pressing, where the process temperature does not exceed 40°C, preserves the most valuable nutrients and natural properties of the oil. Oils obtained by this method have an intense flavor and aroma, but their shelf life may be somewhat shorter. Hot pressing, conducted at higher temperatures, increases the efficiency of the process and yields more oil from the raw material. However, higher temperatures can affect some components of the oil, changing its properties.

Solvent extraction: Solvent extraction is a method of extracting oil from raw materials that are difficult to press, or when the goal is to obtain as much oil as possible. The process uses organic solvents to separate the oil from the other components of the raw material. After extraction, the solvent is removed and the resulting oil is further processed. This method is effective, but requires precise process control to ensure product safety and quality.

Blending of finished oils: blending of finished oils is a technological process that makes it possible to create mixtures with the desired properties. For this purpose, different base oils are combined, selecting them in the right proportions. Mixing can be used to achieve specific parameters such as viscosity, boiling point, or lubricating properties. It is a flexible method that allows the mix to be tailored to specific applications.

Raw materials

Selection of raw materials depending on the purpose of the mixture
The choice of suitable base oils for a blend depends on its end use – in the biofuel industry, oils with high fatty acid content are preferred, while in the chemical industry, stability and viscosity matter. In the production of technical lubricants, mixtures of rapeseed and soybean oils are often used to provide adequate lubricating properties and a high boiling point. For the agricultural sector, it is also important that raw materials come from controlled cultivation, which affects the ecological aspect of production.

Quality of raw materials and their influence on the properties of the mixture
The quality of raw materials plays a key role in shaping the properties of the final product – virgin oils have higher oxidative stability and better performance. Raw materials with a low acid number and low phospholipid content provide better compatibility with other mixture components and minimize the risk of deposits. Contaminants such as heavy metals or pesticide residues can adversely affect physicochemical properties, so it is necessary to properly select raw materials before processing.

Availability and seasonality of raw materials and their impact on prices
The availability of raw materials for oil blends is closely linked to the seasonality of oil crops and global market trends. High canola or sunflower yields drive down commodity prices and increase the availability of mixtures, while adverse weather conditions, trade wars or export embargoes can lead to sharp price increases. Fluctuations in supply affect the purchasing strategy of producers, who often secure supplies through long-term contracts or use alternative sources of raw materials.

Quality control

Quality control of unrefined technical oil blends is a key production step to ensure product stability and compliance with the requirements of industrial customers. The process examines basic physicochemical parameters such as acid number, viscosity, iodine index and impurity content, which affect the durability and suitability of the blend for various applications. Samples are subjected to laboratory tests, including analysis of chemical composition, oxidation resistance, and the content of heavy metals, pesticides and residual solvents. The final product must meet certain quality standards, such as EN 14214 for biofuels or ISO 9001 standards for general quality control in the chemical industry. Depending on the application, mixtures may require additional certifications, such as. ISCC (International Sustainability & Carbon Certification) for the biofuels sector or GMP+ for the feedstock industry. Regular inspection of raw materials and finished products allows the elimination of substandard batches and optimization of production processes to achieve stable quality oil blends.

Trade in blends of unrefined technical oils

Distribution channels

The trade in blended unrefined technical oils is based on various distribution channels, in which both producers and specialized distributors play a key role. Producers of vegetable oils, such as oil presses and oil mills, are engaged not only in extracting oils from seeds, but also in their further processing, thus optimizing the chemical composition and performance characteristics of the final products.

Many manufacturers manage the entire process – from the cultivation of raw materials to the final blending and sale, allowing them to maintain full control over quality and stability of supply. This makes it possible to tailor oil blends to the specific needs of the chemical, biofuel or food industries, which increases their market value.

Wholesalers and distributors play an important role in the sale of technical oils, supplying them to various sectors of the economy and ensuring continuity of supply. These companies often specialize in providing both standard crude oils and custom-developed blends, which increases their flexibility in the market.

Trading in technical oil blends increasingly includes online platforms and commodity auctions, which make it easier to find large-scale buyers. Nonetheless, long-term contracts and direct negotiations remain the dominant form of sales, which allow to adjust commercial terms to changing market realities.

Prices and factors affecting the market

Prices for blends of unrefined technical oils depend primarily on the cost of the base raw materials, such as rapeseed, sunflower and soybean oils, which are the main components of the blends. Fluctuations in the price of these oils are due to a number of factors, such as seasonality of the harvest, changes in production levels or international trade conditions, including export restrictions or customs policies.

Weather conditions such as droughts, floods or frost waves can significantly affect the supply of oil commodities, causing fluctuations in the price of vegetable oils and their blends. In addition, exchange rate volatility is also increasingly important in the global market, affecting the cost of importing and the profitability of exporting oil products.

Growing demand for biofuels and biodegradable lubricants means that the demand for blended technical oils is steadily increasing, which could contribute to higher prices. The sector is also influenced by environmental regulations and European Union policies that promote green alternatives to traditional fuels and lubricants, forcing manufacturers and distributors to adjust their offerings.

The dynamically changing economic environment forces market participants to constantly monitor trends and adjust purchasing and sales strategies. Technical oil trading companies often use hedging mechanisms, such as futures contracts, to mitigate risks arising from sudden fluctuations in commodity prices.

An additional element affecting prices is market conditions, such as changes in demand for biofuels or regulations on organic production of raw materials. For example, growing interest in biocomponents for fuels and biodegradable lubricants is increasing demand for blended technical oils, which could lead to an increase in their market value. MBF Group SA, as one of the key players in the market, constantly monitors these changes and adjusts its offerings, executing both domestic and foreign contracts.

Domestic and international market

Blended technical oils are traded both domestically and internationally, with Poland being both an importer and exporter of these raw materials. Major manufacturers, such as MBF Group SA, specialize in supplying the biofuel and chemical industries, which requires fine-tuning of blend components to meet customer needs. Swiecie Oil Mill, on the other hand, focuses on full control of the production process, from seed cultivation to final distribution, which ensures high quality and stable supply.

Blended technical oils find customers in both domestic and international markets, and their distribution depends on the availability of raw materials and production costs. There are a number of technical oil processing and blending plants that supply their products to a wide range of industrial customers, including the chemical and biofuel sectors.

Imports of technical oils play an important role in ensuring the continuity of supply for the domestic industry, especially during periods of shortage of vegetable raw materials. Poland imports significant amounts of vegetable oils from countries with high agricultural production, such as Ukraine, Argentina and Indonesia, where manufacturing costs are often lower than in Europe.

Exports of technical oils from Poland are also on the rise, especially for high-quality blends tailored to specific industrial applications. These products go to European countries and outside Europe, where the growing demand for renewable and environmentally friendly raw materials increases the attractiveness of Polish producers and distributors.

This market segment is expected to grow further in the coming years, especially in the context of the energy transition and the growing demand for alternative sources of raw materials. The development of new technologies in oil processing and changing regulations will have a key impact on the future of the sector and its ability to compete internationally.

Use of unrefined technical oil blends

Blends of unrefined technical oils are widely used in various industries, as well as in agriculture. In industry, due to their lubricating properties and high boiling point, they are used to produce lubricants and hydraulic oils, which are used in mechanical and heavy industry. In addition, these oils can be converted into biodiesel, providing an environmentally friendly alternative to traditional fuels. In the chemical industry, blends of unrefined technical oils are used as raw materials in the production of bioplastics, paints, varnishes, as well as in the rubber and textile industries for impregnating and refining raw materials.

In agriculture, although there is no clear data on their use as ingredients in natural plant protection products or feed additives, they could potentially be used in these areas. Vegetable oils, due to their properties, can be the base for natural insecticides and fungicides, as well as a valuable source of energy and nutrients in animal feed.

In addition to these main uses, blends of unrefined technical oils can be used to produce bio-components for fuels and in the power generation industry, although in this case there is no detailed information on specific applications.

In summary, blends of unrefined technical oils are versatile raw materials that are used in many industries and potentially in agriculture. Their unique properties, such as biodegradability, high boiling point and good lubricating properties, make them an attractive choice for many applications.

The future of the unrefined technical oil blends market

Trends and innovations

The development of technology for the production and modification of technical oils is a key factor influencing the future of the industry. Manufacturers must adapt their products to changing regulatory standards and technological requirements, especially in the context of the automotive and energy industries. The growing interest in hybrid and electric drives is opening up new opportunities for engineered oils that can find applications in the cooling systems or transmissions of electric vehicles. In the agricultural and chemical sectors, demand is growing for oil blends with anti-corrosive and lubricating properties, creating potential for further product diversification. In addition, the growth of biofuels as an alternative to crude oil may increase demand for blended technical oils, especially in the production of biodiesel and biofuel components.

Challenges for the industry

One of the main challenges facing manufacturers of unrefined technical oil blends is competition from mineral and synthetic oils. There is an increase in the popularity of synthetic oils, which are displacing traditional mineral products due to their better performance and longer service life. In addition, environmental regulations on emissions and green production standards are forcing the oil industry to invest in new technologies and certify products according to sustainability standards. Changing regulations and increasing energy efficiency requirements may also limit the availability of certain raw materials and force manufacturers to look for alternatives.

Prospects for market development

Demand for oil blends in various sectors of the economy is likely to continue to grow, especially in the chemical, energy and automotive industries. The global lubricating oil market is adapting to new technological requirements, and manufacturers must offer solutions that meet the needs of both internal combustion and electric vehicles. Increased environmental awareness and the need to reduce the carbon footprint may further promote oil blends as a more sustainable alternative. Expansion into new markets and internationalization of trade represent further opportunities for technical oil distribution companies, especially in the context of growing demand for biofuels and green industrial lubricants. The ability of suppliers to adapt their offerings to dynamically changing regulations and the requirements of customers in different sectors of the economy will also be key to further growth.

Summary

Blends of unrefined technical oils are playing an increasingly important role in various industrial sectors, providing versatile raw materials with unique physicochemical properties. Their natural ingredients, such as phospholipids, free fatty acids and antioxidants, make them an attractive choice for manufacturers of lubricants, biofuels, paints and technical chemicals. With the ability to combine different base oils, blends can be tailored to meet specific customer needs, ensuring optimal viscosity, boiling point or biodegradability.

Trade in these products is based on a wide distribution network, including both manufacturers and specialized distributors. Global markets are showing increasing demand for green and efficient solutions, which is encouraging further development of the sector. However, volatility in raw material prices, environmental regulations and competition from synthetic oils remain key challenges facing the industry.

MBF Group SA is a publicly traded company listed on NewConnect. The company offers wholesale unrefined technical oils, including rapeseed-sunflower blends, soybean blends and other compositions tailored to customers’ requirements. With a strong network of suppliers in Eastern Europe and Asia, the company ensures stable supply and flexible terms of cooperation. Faced with a rapidly changing market, the company is consistently developing its product portfolio to meet the needs of the biofuel, chemical and agricultural industries.

Looking ahead, interest in oil blends is expected to increase in the context of biofuels and the chemical industry, as well as their growing use in the production of sustainable lubricants and industrial oils. Investments in new oil production and modification technologies can further increase the competitiveness of this market segment.

 

SALES OFFER: BLEND OF RAPESEED AND SOYBEAN OIL

1. Vendor:

📌 MBF Group S.A.

2. Product:

📌 Blends of unrefined food vegetable oils
📌 CN (HS) code: 1517909100

3. Batch parameters:

📌 Volume: 500 tons
📌 Quality of goods: TU BY 100051189.001-2024 | STB 1486-2004
📌 Ingredients: blend of rapeseed and soybean oil

4. Price and business terms:

📌 Price: 945 EUR / MT
📌 VAT rate: 0%
📌 Settlement currency: EUR
📌 Incoterms: DAP: Belarus-Poland/Lithuania/Latvia border.
📌 Packaging conditions: bulk in wagons provided by the Seller

5. Payment terms:

📌 Payment terms: Minimum 1 business day prior to delivery

 

 


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