European Fatty Acid prices rose toward the end of Q3 2025, driven by firm demand and tighter feedstock availability to produce the product. Demand was firm across the key downstream cosmetics and paints sectors. Cosmetics industries saw a steady demand for Fatty Acid as emollients, surfactants, and stabilizers amid e-commerce growth, while paints & coatings increased use for reformulations as alkyd modifiers, and emulsion stabilizers. Industrial demand and a construction rebound added support. Supply recovery from the post-summer trade rebound helped volumes, but localized port/rail congestion raised short-term freight costs. Rapeseed oil supported production costs after farmers’ reluctance to sell despite a good harvest, and coconut oil early harvest uncertainty risked further feedstock pressure; lower operating rates, expected winter energy price rises, and potential labor/shipment delays tightened availability. Although measures like export duty from 4 Sept, higher domestic utilization, and increased Ukrainian rapeseed exports eased some strain, the market was set for moderate price gains in the coming weeks of Q4.
The European Fatty Acid prices increase in the European region towards the end of the third quarter of 2025. It was driven by firm demand and weak production due to tightening feedstock dynamics.
Fatty Acid demand was firm across the European cosmetics, personal care, paints, and coatings sector in September 2025. Cosmetics saw a steady-to-rising need for C8–C10 and longer chains Fatty Acid as emollients, surfactants, and formulation stabilizers amid premiumization, skincare growth, and stronger e-commerce.
Concurrently, Fatty acid demand increased modestly in the paints and coatings sector due to their continued use as bio-based coalescent, resin modifiers, and emulsion stabilizers in specialty coating formulations. Industrial applications and a partial rebound in construction supported volumes, while lower operating rates, winter energy cost expectations, and logistics or labor constraints tightened supply and kept upward price momentum. Overall, Fatty Acid demand growth was selective and driven by formulation shifts toward sustainable, high-performance, and personal-care segments.
At the same time, the supply rates were steady as Europe's internal trade and exports rebounded in September 2025 after the summer slowdown, with modest rises in intra-EU shipments and extra-EU exports. Recovery was supported by stronger manufacturing orders, inventory restocking, seasonal logistics normalization, and improved demand from key partners, although localized port and rail congestion (e.g., Rotterdam, Bremerhaven) caused delays and higher short-term freight rates.
Additionally, cost support was firm on the production costs of Fatty Acid due to last month's increase in feedstock rapeseed oil prices despite a strong harvest in the region, primarily due to farmers’ reluctance to sell at prevailing market rates. This supply-side restraint created a tight market environment amid firm demand for rapeseed oil as buyers shifted away from more expensive alternatives like sunflower and soybean oils. However, the introduction of export duty w.e.f. 4 September 2025, increased capacity utilization of domestic units, and rapeseed oil prices eased due to an increase in exports from Ukraine during the month.
At the end of September 2025, Fatty Acid C8-C10 FOB Hamburg quotations were hovering at USD 4320/MT.
The Fatty Acid prices are anticipated to increase further in Q4 as export demand for cosmetic-grade formulations looks set to rise with new product launches and retail cycles, and rebounds in personal-care and industrial sectors are expected to accelerate buying from importers. Early-harvest uncertainties in feedstock Rapeseed oil risked upward pressure on Fatty Acid feedstock costs, while declining operating rates are likely to constrain output and tighten supply. Anticipated winter energy price increases and potential labor shortages or shipment delays would further raise production costs and restrict local availability, supporting moderate near-term Fatty Acid price gains.
