For the Quarter Ending March 2025
North America
In North America, the Castor Oil market displayed varied pricing behaviour across the first quarter of 2025. The new year opened on a relatively steady note in January, with ample global supply stemming from fresh harvests in major production regions supporting stable trade flows and maintaining balanced price levels. Minor upward price adjustments, triggered by logistical delays such as blank sailings and fluctuations in freight rates, were effectively neutralized by restrained industrial consumption. Early economic indicators reflected cautious optimism, yet this sentiment did not translate into significant procurement momentum within castor oil-reliant industries.
A sharp shift occurred in February, prompted by abundant global availability as increased castor seed production from key agricultural areas bolstered supply chains. This oversupply, coupled with subdued demand from North America’s pharmaceutical, personal care, and specialty chemical sectors amid recessionary concerns, led to pronounced price corrections. Declining crude oil values further eroded the competitiveness of bio-based alternatives like castor oil.
Concurrently, logistical improvements and reduced freight charges following regional holiday periods enabled cheaper import options, intensifying downward pricing pressure. Favorable currency exchange trends also supported affordability for overseas purchases. By March, heightened competition from alternative vegetable oils such as soybean and palm oil diverted demand, accelerating the price decline. The quarter concluded with a consistent weakening of castor oil prices in North America, underpinned by tepid industrial demand, competitive market dynamics, and robust global supply conditions.
Asia-Pacific
In the Asia-Pacific region, the Castor Oil market witnessed a largely bearish price trajectory through the first quarter of 2025, marked by intermittent fluctuations. January began with a mixed scenario as import prices saw modest gains driven by elevated raw material costs in key supplying regions and persistent disruptions in global maritime logistics. Conversely, export prices encountered sustained downward pressure due to muted international demand and intensifying competition from major suppliers within the region, who adopted aggressive pricing tactics supported by favorable harvest outcomes. By mid-January, weakening industrial activity indicators underscored softening manufacturing momentum, which exacerbated bearish market sentiment for castor oil exports.
The Lunar New Year period in February further suppressed market activity, as is typical during this seasonal slowdown, with industrial operations and trade volumes dipping significantly. Although post-holiday improvements in factory output briefly stabilized domestic inventories, demand fundamentals remained notably weak. Export sales lagged as key overseas markets curtailed orders, while inflationary trends and currency volatility dampened purchasing appetite across international destinations.
March brought some stabilization in production activity, but demand recovery remained sluggish. Export orders continued to fall short of expectations, hindered by oversupply and competitive pricing pressure from regional suppliers. The quarter ultimately closed with a persistent softening in castor oil prices throughout the Asia-Pacific export markets, shaped by an ongoing imbalance of supply and demand, macroeconomic uncertainties, and limited downstream sector procurement.
Europe
The European castor oil market encountered considerable volatility throughout the first quarter of 2025, characterized by an initial price rebound in January followed by a progressive correction in subsequent months. The new year began with an unexpected surge in castor oil prices after several months of prior decline. This resurgence was driven by a combination of unfavourable weather affecting crop yields in major producing regions, coupled with supply chain disruptions stemming from labour issues and adverse winter conditions at key logistical hubs. Additionally, robust industrial demand from pharmaceutical, cosmetics, and specialty chemical sectors contributed to the bullish momentum, as downstream buyers moved to build inventories in anticipation of further supply constraints.
Despite these bullish factors, underlying industrial activity remained subdued, with regional manufacturing indicators pointing to a contraction in production levels. Input cost inflation and extended delivery lead times added further strain to operational continuity. By February, improved supply availability from key origin markets and the normalization of port operations began to ease logistical bottlenecks. Demand from Europe’s end-use sectors stabilized but failed to maintain the elevated procurement volumes seen in January. Consequently, prices softened in March, aligning with broader global market movements shaped by increased supply and moderated international demand. By the close of the quarter, although prices remained above early January levels, the European castor oil market had entered a gradual corrective phase, influenced by restored trade fluidity and tempered downstream purchasing across the region.
For the Quarter Ending December 2024
North America
Throughout Q42024, the North American region witnessed a notable drop in Castor Oil prices, driven by a confluence of factors. Despite weak castor seed harvests in major producing countries like India, global castor oil availability remained high, driven by ample supply from other regions. Demand for castor oil, however, softened due to muted industrial activity, with many sectors shifting to alternative oils or synthetic substitutes.
Competitive pricing from Indian exporters, bolstered by favorable exchange rates and lower production costs, intensified the downward trend, further undermining U.S. suppliers' market share. In October, a slight improvement in the U.S. Manufacturing PMI indicated minor stabilization, yet ongoing supply chain disruptions and pre-election uncertainty kept demand subdued. As the month progressed, weakening export demand and stable but pressured prices marked the castor oil market, with U.S. buyers facing less price volatility but limited growth. By November, the manufacturing sector showed signs of stabilization, with reduced inflationary pressures and a slower pace of cost increases, providing a more favorable economic environment. However, weak demand persisted, and market volatility remained, exacerbated by global production delays and weak export demand.
December saw a further decline in prices, with high inventories and reduced downstream demand pushing suppliers to lower prices to expedite turnover. Competitive pricing from India, a stronger U.S. dollar, and smoother supply chains further pressured prices down, exacerbating the subdued market environment. While the outlook for the first quarter of 2025 suggested a potential recovery, the market in December was marked by reduced procurement due to seasonal slowdowns and holiday-related lulls.
Asia Pacific
During the entire fourth quarter of 2024, China's castor oil market witnessed an overall downward trend. In October, imports rose due to increased demand from sectors like lubricants, cosmetics, and bio-based plastics, fuelled by China’s industrial growth. However, crop failures in India reduced global supply, while re-export prices dropped as domestic supply met local demand, reducing the need for re-exports. This shift towards a consumption-driven market changed global dynamics. Despite an improvement in China’s manufacturing PMI, export orders continued to decline, and rising input costs strained the economy. By November, weakening demand from key industries, including pharmaceuticals and personal care, led to a further drop in castor oil prices. Economic challenges and cautious inventory management contributed to this downturn, with reduced imports and re-export activities. In December, the market saw continued price declines due to weak demand, logistical adjustments, and the depreciating Chinese yuan. As a result, suppliers continued to scaled back purchases, and re-exports remained sluggish, leading to a pessimistic outlook and limited trading activity.
Europe
Castor oil prices in France during Q4 2024 are expected to follow a global downward trend, influenced by both local and international factors. Globally, weaker demand from industries like cosmetics and pharmaceuticals, alongside increased inventories from major exporters like India, is driving prices lower. India's improved production and logistics have led to competitive pricing, impacting Europe, including France, where demand remains subdued and supply levels adequate. The depreciation of the euro against the dollar has further reduced import costs, contributing to the decline. Domestically, competition among suppliers and shifts in consumption may cause minor fluctuations, but a general price decline is expected. France's manufacturing sector faced challenges, with the HCOB France Manufacturing PMI falling to 44.5 in October 2024, reflecting weak domestic and foreign demand, particularly in construction. Geopolitical tensions and the global economic slowdown further suppressed demand. By November and December, castor oil prices continued to drop, driven by oversupply, weak consumption, and lower exports, compounded by competition from alternative oils.
For the Quarter Ending September 2024
North America
Throughout Q3 2024, the North American region witnessed a notable surge in Castor Oil prices, driven by a confluence of factors impacting the market dynamics. Several key reasons contributed to the significant price increases observed during this period.
Demand for Castor oil remained strong, particularly from the Asia-Pacific and North African regions, where its competitive pricing compared to alternative edible oils fueled substantial purchasing activity. This spike in demand further strained available stocks, intensifying supply shortages and escalating prices. Furthermore, Currency fluctuations, particularly the depreciation of the US dollar against major currencies, added another layer of complexity to the market dynamics. As a result, this scenario highlights the fragile interconnectedness of global commodity markets, where supply chain disruptions, lower availability ahead of reduced production, and higher demand from the end-users ripple through to a significant impact on the Castor oil industry.
Overall, within the North American region, In the USA specifically, the market experienced the most pronounced price changes, with a 3% increase from the previous quarter, indicating a continued upward trend. The quarter ended with a price of USD 1900/MT for Refined Castor Oil (FSG Grade) CFR Houston, reflecting the overall positive pricing environment characterized by increasing prices and a tight market situation.
Asia Pacific
Moving forward throughout the third quarter of 2024, the APAC region experienced a notable increase in Castor Oil prices, driven by a combination of factors that influenced market dynamics. Adverse weather conditions in key castor seed-producing regions led to lower harvests, creating a supply shortage that put immediate pressure on production and distribution costs. Global demand for Castor Oil and its derivatives saw a sharp uptick, particularly in sectors like food and renewable energy, further fueling the price surge. Rising energy and transportation costs added to the overall increase in prices, impacting the market sentiment. While the situation is further complicated by a decrease in stocks of other edible oils. Deep processing enterprises and port areas saw a sharp decline in Castor Oil arrivals. In order to stimulate arrivals, deep processing enterprises, and other regions raised prices to destock their inventory, driving the domestic Castor Oil market price to continue to rise. This strategy aims to capitalize on the supply constraints and increase global prices.
In China, the market witnessed the most significant price changes during the quarter. The pricing environment showed a consistent upward trend, with seasonality playing a role in the market dynamics. As a result, the quarter-ending price of USD 2195/MT of Refined Castor Oil (FSG Grade) (Re-Export) FOB Qingdao and USD 1620, CFR Shanghai highlighted the overall trend of rising prices in the region.
Europe
In the third quarter of 2024, the European Castor Oil market experienced a steady upward trend in prices, driven by several critical factors. Limited availability of raw materials constrained supply, while downstream sectors exhibited strong demand, further exacerbated by rising freight costs. This supply-demand imbalance exerted significant upward pressure on prices, with a 4% price increase compared to the previous quarter. Seasonality and market sentiment played substantial roles, as speculative buying and consumer panic due to fears of future shortages intensified the tight supply situation. The Netherlands was at the forefront of these price changes, reflecting the broader European market trends. By the end of the quarter, the price of Refined Castor Oil (FSG Grade) CFR Rotterdam reached USD 1775 per metric ton. Disruptions in production and plant shutdowns during this period further complicated market dynamics, adding to the uncertainty in supply. Overall, positive sentiment prevailed throughout Q3 2024, with expectations of continued price increases. The combination of constrained supply, high demand, and market speculation contributed to the persistent upward trajectory in Castor Oil pricing, signaling ongoing volatility and potential price pressures moving into the subsequent quarter.
For the Quarter Ending June 2024
North America
Throughout the second quarter of 2024, the North American Castor oil market demonstrated resilience and stability, showcasing an overall positive trend. This period was characterized by a delicate balance between steady regional consumption and global supply chain challenges, resulting in a cautiously optimistic pricing environment.
Key industries such as pharmaceuticals, cosmetics, and personal care continued to drive strong demand, providing consistent support for prices. This robust consumption was met with supply constraints, primarily due to ongoing global supply chain issues. Logistical complexities, including container shortages and increased freight rates, contributed to higher transportation costs and extended lead times, further influencing the market dynamics. The USA, in particular, experienced the most notable price fluctuations. The market displayed a stable yet upward trajectory, buoyed by seasonal demand patterns and persistent procurement from downstream industries. The interplay between supply limitations and high demand was evident, with the depreciation of the US dollar against other currencies amplifying import costs and subsequently elevating domestic prices.
Environmental factors also played a role in shaping the market, with declining water levels in major transportation routes adding another layer of complexity to logistics and overall costs. These challenges, combined with geopolitical tensions, further accentuated the upward pressure on prices. The quarter concluded with a 7% increase compared to the previous quarter, indicating a relatively stable market sentiment. By the end of Q2 2024, the price for Refined Castor Oil (FSG Grade) in the USA reached USD 1800/MT, reflecting the market's resilience and adaptability in the face of various challenges. This pricing environment underscores the castor oil market's ability to maintain stability while navigating complex global economic and logistical landscapes.
Asia Pacific
In Q2 2024, the APAC region's Castor Oil market experienced a positive shift, showcasing resilience and adaptability. Despite initial challenges, the market demonstrated remarkable recovery potential. The temporarily diminished demand from key downstream industries such as lubricants, pharmaceuticals, and cosmetics created opportunities for market diversification and product innovation. The surplus supply of castor oil, initially seen as a challenge, allowed for competitive pricing strategies that attracted new buyers and opened up emerging markets. This oversupply situation encouraged manufacturers to explore novel applications for castor oil, potentially expanding its use in sustainable and eco-friendly products. Economic concerns initially impacted the market, but they also spurred efforts to enhance efficiency and reduce production costs. This led to a more streamlined and competitive industry. Trade tensions and elevated global freight costs prompted local sourcing initiatives, strengthening regional supply chains and fostering closer relationships between producers and consumers. South Korea, while experiencing price changes, leveraged its position to become a regional hub for castor oil trade. The country's robust infrastructure and strategic location allowed it to capitalize on the market fluctuations. The seasonal off-peak period was utilized for maintenance, research, and development, preparing the industry for future growth. The 2% price decrease from the previous quarter, rather than being a negative indicator, represented a market correction that improved affordability and stimulated demand. Rising transportation costs and currency depreciation challenges were met with innovative logistics solutions and financial strategies, showcasing the industry's adaptability. Overall, by the end of Q2 2024, the price for Refined Castor Oil (FSG Grade) in South Korea at USD 1580/MT reflected a stabilized market ready for future growth. This period of adjustment set the stage for a more balanced and sustainable Castor Oil market in the APAC region, with improved market dynamics and potential for expansion in the coming quarters.
Europe
In the second quarter of 2024, the European Castor Oil market experienced a complex pricing dynamic characterized by an initial downward trend followed by a modest upturn towards the end of the period. This market behavior was influenced by a combination of factors that created both challenges and opportunities for industry participants. The quarter began with a decrease in prices, primarily due to reduced demand from key sectors such as pharmaceuticals, personal care, and industrial applications. This situation was exacerbated by economic pressures and elevated energy costs across the region. However, this initial downturn created favorable conditions for strategic inventory management and market repositioning. Geopolitical tensions, particularly the disruptions caused by the Houthis' campaign against Israel in Gaza, initially posed logistical challenges. Yet, these circumstances also prompted industry players to develop more resilient supply chains and explore alternative sourcing options, potentially leading to long-term improvements in market stability. France, as a key market, experienced significant price fluctuations. The initial oversupply and high inventory levels led to price adjustments, which ultimately helped balance the market. This correction phase allowed for more competitive pricing strategies, potentially stimulating demand from price-sensitive sectors. The -1% change between the first and second quarters indicates a gradual stabilization of the market. This trend suggests that the industry was adapting to the new market conditions, with prices finding a more sustainable equilibrium. By the quarter's end, with Refined Castor Oil (FSG Grade) in France priced at USD 1620/MT, the market showed signs of stabilization. This price point, while reflecting the quarter's challenges, also positioned the market for potential growth as industries adjust to the new pricing environment and explore innovative applications for Castor Oil.
