Oleic Acid Price Uptick, as Festive Formulations and Biodiesel Mandates Tighten Supply

Key Highlights 

• Malaysian oleic acid producers faced cost inflation due to a xx CPO export duty 
• Festive demand from India and Vietnam accelerated oleic acid offtake in Qx 
• Indonesia’s biodiesel mandate diverted CPO away from oleochemical production 

Demand for oleic acid gained pace in personal care, pharma, and food industries in Qx. Indian formulators developed emollient-based product ranges prior to Diwali, while oleic acid was purchased by Vietnamese customers to back Qx skin care launches. The sharpest demand was for pharma-grade oleic acid, which had formulators charging x–xx inflation due to supply shortages. Malaysian makers were more intent on export orders than local use, and high-margin exports took precedence. This was also experienced in Indonesia, whose international buyers diverted buying with Malaysian shortfalls.

Malaysia&#xx;s supply of oleic acid was squeezed by the government&#xx;s August move to increase the reference price...