For the Quarter Ending June 2025
North America
• Castor Oil Spot Price remained largely stable in June 2025 has recorded a minor uptick of 0.49%. Despite slightly firmer export offers, domestic market stability was driven by balanced inventory levels and restrained procurement across sectors like personal care and lubricants.
• Why did the price change in July 2025? Prices slightly declined in early July as inventory holding remained adequate and there was no fresh procurement urgency from end-users post Q2 closures. The Castor Oil Spot Price softened marginally due to subdued demand impulses and stable import flows.
• Castor Oil Price Forecast for Q3 2025 suggests a mildly bearish trend if current demand inertia persists. Buyers are expected to adopt lean procurement strategies due to ample Q2-end stocks.
• In May 2025, the Castor Oil Spot Price rose by 1.11%, tracking upstream pricing pressure from Indian exporters, who raised FOB rates following lower sowing data. Yet, Castor Oil Production Cost Trend within the US remained unaffected due to continued import reliance.
• April 2025 witnessed a price decline, driven by oversupply and sluggish industrial uptake in pharmaceuticals and lubricants. U.S. buyers slowed procurement, leading to a temporary inventory build-up.
• Downstream Castor Oil Demand Outlook stayed neutral in June. Manufacturers in food processing and coatings sectors maintained only routine procurement, avoiding speculative stockpiling.
• Despite higher Indian export prices, imported material availability remained smooth in Q2, supported by stable shipping and inland logistics across U.S. ports, particularly in Houston.
• Importers largely adopted a ‘just-in-time’ procurement model throughout Q2, minimizing inventory pressure and insulating the U.S. market from sharp price swings amid moderate global supply tightening.
• Castor Oil Price Index in June 2025: USD 1643/MT CFR Houston, marking a slight recovery from April lows but still within a narrow range, reflecting a market focused on operational balance rather than speculative buying.
Asia Pacific
• Castor Oil Spot Price in June 2025 remained flat with no month-on-month change. Importers proceeded with cautious, need-based procurement as the quarter closed.
• Why did the price change in July 2025? Castor Oil prices remained unchanged or slightly softened in July as Q2-end inventory levels were sufficient, and no new downstream demand drivers emerged. Spot Price trends remained subdued due to lack of fresh activity.
• Castor Oil Price Forecast into Q3 2025 suggests continued stability unless export-side tightening intensifies further. No disruptive procurement behaviour is expected from downstream sectors.
• May 2025 saw a 1.15% price rise, driven by upstream firming from India, where acreage was reduced and exporters increased FOB offers. South Korean buyers absorbed higher costs without skipping procurement.
• April 2025 marked the beginning of a price rebound after two months of softness, as Castor Oil Demand Outlook improved with gradual recovery across industrial lubricant and coating sectors.
• June’s pricing inertia reflected stable Castor Oil Production Cost Trend, where import prices didn’t significantly shift due to smooth shipping and moderate supplier pricing.
• Port operations and inland logistics in South Korea functioned without disruption throughout Q2, supporting lean inventory cycles and preventing unnecessary price hikes.
• Downstream users in food additives, personal care, and pharmaceuticals continued routine procurement schedules. No bulk demand emerged, helping maintain a steady Castor Oil Spot Price environment.
• Castor Oil Price Index in June 2025: USD 1590/MT CFR Busan, reflecting the market’s stabilization trend amid cautious buyer behaviour and controlled supplier pricing.
Europe
• Castor Oil Spot Price surged 2.03% in June 2025 as downstream buyers replenished depleted stocks in personal care, pharmaceutical, and coatings sectors.
• Why did the price change in July 2025? Prices corrected slightly in July following the June buying spree. The Castor Oil Spot Price stabilized as buyers in Europe had already rebuilt inventories, and Castor Oil Demand Outlook normalized amid stable operating rates.
• Castor Oil Price Forecast for early Q3 suggests a flattening price curve unless unexpected consumption spikes emerge. Current fundamentals reflect equilibrium in supply-demand flow.
• In May 2025, prices increased by 1.12% as Indian exporters tightened volumes due to reduced castor acreage. This impacted the Castor Oil Price Index, which began its upward move after April's lows.
• April 2025 saw Castor Oil Spot Prices decline, influenced by ample supply from India, low freight rates, and strong EUR/INR exchange rate. Pre-stocked volumes and subdued sectoral demand pushed landed prices downward.
• In June, Castor Oil Production Cost Trend was steady in Europe due to unchanged freight and refining margins. The rise in landed prices was solely driven by procurement demand, not production-side inflation.
• No supply chain issues occurred during Q2, ensuring consistent product flow to Rotterdam. This operational fluidity supported buyers’ ability to make volume-based decisions confidently.
• The Castor Oil Demand Outlook remained strong in Q2, particularly for food emulsifiers, lubricants, and cosmetic base materials. Coatings and pharmaceutical firms also scaled up offtake.
• Castor Oil Price Index in June 2025: USD 1658/MT CFR Rotterdam, continuing a firm upward trajectory from April lows, driven by synchronized demand recovery and strategic inventory buildup.
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.
FAQs
1. What is Castor Oil and what makes it unique in industrial applications?
Castor Oil is a triglyceride primarily composed of ricinoleic acid, derived from castor beans. Its high viscosity, thermal stability, and excellent lubricity make it ideal for use in lubricants, polymers, coatings, and specialty chemical manufacturing.
2. Which sectors contribute most to the global Castor Oil Demand Outlook?
The highest demand comes from the pharmaceutical, personal care, lubricant, and polymer sectors. Its usage in bio-based polyamides, surfactants, and cosmetic formulations continues to expand due to sustainability mandates and product performance needs.
3. What are the primary factors influencing the Castor Oil Spot Price globally?
The spot price is primarily influenced by seasonal castor seed harvest cycles, processing output in major producing countries, and global demand trends, especially in downstream oleochemical and pharmaceutical markets.
4. How is the Castor Oil Price Forecast determined in trading and procurement?
Forecasts take into account agricultural output trends, export sentiment from key producing regions (notably India), and industrial consumption rhythms, particularly in the biopolymer and lubricant additives segments.
5. Are there specific regions driving the Castor Oil Production Cost Trend?
Yes, India remains the largest contributor to global production, so domestic cultivation conditions, labour input costs, and solvent extraction efficiencies largely shape the global production cost trend.
