North American Fatty Acid Market Sees Price Relief in Early Q3 2025

North American Fatty Acid Market Sees Price Relief in Early Q3 2025

Timothy Greene 14-Aug-2025

At the start of Q3 2025, fatty acid prices in North America declined as lower Palm Kernel Oil costs reduced production expenses for manufacturers. The feedstock was readily available and cheaper than in June, improving margins and supporting steady output. Imports stayed low, with ocean freight rates from Asia falling due to high inventories and slow seasonal demand, while shipments from Europe remained stable. Air cargo from Asia saw a brief rise ahead of tariff changes, and easing trade tensions improved planning. Demand remained balanced, supported by steady consumption in paints & coatings and cosmetics sectors.

At the beginning of the third quarter of xxxx, the Fatty Acid prices fell in the North American region. Producers benefited from lower feedstock costs for making medium-chain Fatty Acid. The drop in raw material prices improved production margins, while imports stayed low due to high domestic stock and weaker seasonal demand. Freight rates from Asia declined, European shipments remained steady, and a brief rise in air cargo from Asia occurred ahead of tariff changes. Easing trade tensions made planning easier, but buyers stayed cautious as they cleared existing inventories. However, it is expected that the Fatty Acid prices will increase in the upcoming weeks.

In July xxxx, the U.S. Fatty Acid market saw cost relief for producers as Palm Kernel Oil, a key lauric oil feedstock for making medium-chain Fatty Acid (MCFAs) and related products, was widely available and priced lower than the...

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Fatty Acid

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