Indonesia draws up palm oil export ban- Is it a positive sign for Asian Glycerine market
- 20-May-2022 3:08 PM
- Journalist: Rene Swann
New Delhi, India- On 19th May, the president of Indonesia announced that the Indonesian government would be lifting the ban on palm oil export in the overseas market. The action will initiate starting from Monday, 23rd May. Consequently, positive impacts can be observed in the global market of Glycerine as prices may oscillate in the global market.
The world's prominent palm oil exporter Indonesia banned the palm oil export on 28th April, aiming to docile domestic palm oil surging prices and its derivatives prices. This sweeping step showcased its drastic effects to the Glycerine market also. The upstream elements which required to produce Glycerine include palm oil, coconut, and other fatty acids, and any inflations among these proportionally affect the market position of Glycerine.
The key factor which forced Indonesia’s government officials to ban the export, were the building pressure from local farmers. According to the farmers, the demand for their palm fruits were below the margin, with less profit. Looking to the Asia Pacific region, the market position of Glycerine has been following the stagnancy on the back of continuous demand from end-use businesses. Pharmaceuticals and food services requires Glycerine as the raw material. The key factor driving the Glycerine market is the firm demand from the cosmetics industries. Rising feedstock prices required for Glycerine have raised the concern of many cosmetics brands such as L’Oréal and Unilever as their production cost also escalated.
In Indian market, the rising attention of people towards personal care and flourishing cosmetics industries governs the prices of Glycerine. Major local manufacturers faced a tight supply of feed from exporters countries, proportionally affected the market sentiments toward Glycerine. According to the resources, the reversal of the ban on palm oil in the overseas markets may cool down the burning prices of edible oil, consequently affecting the Glycerine prices.
As per ChemAnalyst, "the Glycerine prices may follow the buoyancy in the upcoming weeks on the back of availability of sufficient feed with the manufacturers." The soaring demand from pharmaceutical industries and cosmetics will dominate Glycerine prices.