Global Fatty Acid Prices Nosedive Sharply in October 2023 Amidst Ample Inventories
- 10-Nov-2023 3:26 PM
- Journalist: Jacob Kutchner
Global Fatty Acid prices have shown a declining trend in October 2023. Ample inventory amid poor demand has forced the prices of Fatty Acids to go down. The European market has witnessed a major downtrend, while the North American market has demonstrated the least reduction in Fatty Acid prices. On the other hand, both the major suppliers and buyers in Asian markets like Indonesia and India have also shown a decrease in Fatty Acid prices.
In the North American market, Fatty Acid prices have been hovering around USD 1670 per metric tonne in October. Indonesia has registered USD 1030 per metric tonne of Fatty Acid. Germany has seen more than a 10 percent decline in Fatty Acid prices.
In October, India’s manufacturing PMI fell to 55.4 from September’s 57.3, the lowest since March when the recorded PMI had been 56.3. According to market participants, total new orders for Fatty Acid, production, exports, and purchase levels have reduced in October in Asian markets overall. The business confidence has slipped to a five-month low in October.
P&G, a multinational leader in the Consumer Goods sector, has revealed sluggish growth in its first quarter results of Fiscal year 2024. In the Beauty and grooming segments, it achieved only 3% and 6% sales respectively. The fabric and Home care sector has registered 8 percent foreign sales, while the healthcare segment has recorded a growth of 11% in sales. Organic sales in all the categories have not shown more than 10 percent growth. On a yearly basis, organic sales have increased only 5 percent.
In the third quarter of 2023, BASF Group reported a decrease in sales by USD 6.6 billion from the previous year, with the total sales amounting to USD 16.76 billion. The decline has been majorly due to considerably lower chemical prices, including personal and home care segments.
In its third-quarter report, DOW reported a decrease in net sales compared to the volume in the prior year. In Asia Pacific, the volume growth has been only 8 percent, while in the US and Canada, it has been 7 percent. In its performance materials sector, it has reported a decrease in sales volume.
However, Indonesia, the World’s biggest producer of Fatty Acid precursor palm oil, has been continuously making efforts to use palm-oil blended jet fuel, which has signaled a future scope for palm oil in the Sustainable Aviation Fuel (SAF) industry. On a yearly basis, organic sales have increased only 5 percent.