For the Quarter Ending September 2025
North America
• In the USA, the Fatty Acid Price Index fell by 9.8% quarter-over-quarter due to lower feedstock costs and sluggish seasonal demand.
• The average Fatty Acid Stearic Acid triple pressed DEL USGC price for the quarter was USD 2287.33/MT.
• Fatty Acid Price Index weakened in early Q3 but rebounded in September as consumption picked up across key downstream sectors.
• Fatty Acid Production Cost Trend eased during July and August, driven by declining palm kernel oil and soybean oil prices, which are primary feedstocks for medium- and long-chain fatty acids.
• The Fatty Acid Demand Outlook improved in late Q3, supported by rising consumption in personal care products, soaps and detergents, paints and coatings, lubricants, food additives, and pharmaceuticals
• In September 2025, the Price Index increased due to restocking activity, stronger demand from cosmetics and industrial coatings, and stabilized freight costs from Asia.
• Fatty Acid Price Forecast suggests moderate firmness into Q4 2025, contingent on feedstock trends and sustained demand from hygiene, food, and chemical sectors.
• Domestic producers benefited from easing trade tensions and steady export volumes, while imports from Asia remained low due to high inventories and reduced freight rates
• Sustainability trends and consumer preference for bio-based ingredients continue to support long-term demand for fatty acids in North America.
• Moderate operating rates and weather-related feedstock constraints tightened Fatty Acid availability, affecting spot contract quotations.
Why did the price of Fatty Acid change in September 2025 in North America?
• Demand from personal care and coatings sectors improved, lifting procurement volumes.
• Restocking activity ahead of Q4 supported price recovery.
• Freight costs stabilized, and feedstock prices leveled off, allowing producers to adjust pricing upward.
APAC
• In Indonesia, the Fatty Acid Price Index fell by 25.35% quarter-over-quarter, due to weak demand from key downstream sectors and a surplus of palm-based feedstocks in Southeast Asia.
• The average C16 Fatty Acid price for the quarter was approximately USD 1413.33/MT, on FOB Tanjung Priok basis.
• Fatty Acid Production Cost Trend eased during the quarter, driven by falling prices of palm oil and coconut oil, along with lower freight rates and energy costs across major producing countries like Indonesia, Malaysia, and India.
• The Fatty Acid Demand Outlook remained subdued for most of Q3, with limited activity in personal care, soaps and detergents, rubber processing, lubricants, and food emulsifiers, though signs of recovery emerged in late September.
• In September 2025, the Price Index increased modestly due to seasonal restocking, improved export orders from China and South Korea, and a slight rebound in personal care manufacturing.
• Fatty Acid Price Forecast suggests cautious optimism for Q4 2025, with prices expected to stabilize if demand from hygiene, food, and industrial sectors continues to improve.
• Regional producers operated at reduced capacity during the price trough but began ramping up output in September in response to improving margins and export inquiries.
• Sustainability trends and the growing preference for bio-based surfactants and oleochemicals continue to support long-term demand for fatty acids in the APAC region.
• Major producer operating rates and inventory adjustments will determine near-term availability and stabilization of Price Index.
Why did the price of Fatty Acid change in September 2025 in APAC?
• Seasonal restocking and improved export demand lifted procurement activity.
• Feedstock prices stabilized after months of decline, supporting a modest increase in production costs.
• Personal care and detergent sectors showed early signs of recovery, pushing the Price Index upward.
Europe
• In Germany, the Fatty Acid Price Index fell by 7.7% quarter-over-quarter, amid lower production costs due to decline in feedstock prices.
• The average Fatty Acid price for the quarter was approximately USD 4173.67/MT, as per FOB Hamburg basis.
• Fatty Acid Price Index weakened in July and August due to lower feedstock costs and sluggish demand from industrial sectors but rebounded in September as downstream consumption improved.
• Fatty Acid Production Cost Trend eased mid-quarter due to falling prices of palm oil and tallow but began rising again in September amid tighter raw material availability and increased energy costs across Western Europe.
• The Fatty Acid Demand Outlook improved in late Q3, supported by rising consumption in personal care products, soaps and detergents, lubricants, coatings, food emulsifiers, and pharmaceuticals.
• In September 2025, the Price Index increased due to seasonal restocking, stronger demand from cosmetics and food sectors, and reduced output from key suppliers in Germany and the Netherlands.
• Fatty Acid Price Forecast suggests stable-to-firm pricing into Q4 2025, contingent on feedstock trends and sustained demand from hygiene, food, and chemical sectors.
• European producers operated at moderate-to-high-capacity utilization, while imports from Asia remained steady, helping balance supply chains.
• Sustainability initiatives and consumer preference for bio-based ingredients continue to support long-term demand for fatty acids in Europe.
• Logistics disruptions and driver shortages tightened supplies, elevating freight costs and pressuring the Price Index.
Why did the price of Fatty Acid change in September 2025 in Europe?
• Seasonal restocking and improved demand from personal care and food sectors lifted procurement volumes.
• Feedstock availability tightened, pushing production costs higher.
• Reduced output from key producers supported a rise in the Price Index.
For the Quarter Ending June 2025
Asia-Pacific (APAC)
• Fatty Acid Price Index in APAC witnessed fluctuations through Q2 2025, with a bullish start in April followed by bearish corrections in May and June. Overall, the quarter-on-quarter decrease by 8.4%. In April, prices rose by 1.5%, driven by tight supply conditions, depleted inventories, and firm downstream demand, prompting producers to hike prices. However, by the end of June, C8-C10 FOB Shanghai prices declined by 3.1%, settling at USD 3730/MT, as production outpaced demand and logistical challenges limited supply chain efficiency without adding upward pressure on prices.
• Why did the price of Fatty Acid change in July 2025 in China?
In early July 2025, prices likely stabilized, as balanced demand from coatings and personal care segments met moderated production rates and easing supply-side pressures. Although prior oversupply concerns persisted, stable downstream consumption and receding freight volatility helped prevent further price declines.
• The Fatty Acid Price Forecast for early Q3 suggests a cautiously stable outlook, influenced by anticipated seasonal demand from personal care and industrial coatings, lingering export constraints due to trade tensions, and mild recovery in logistics. However, suppliers are expected to remain cautious amid persistent feedstock cost fluctuations and inventory overhangs.
• The Fatty Acid Production Cost Trend showed mixed movement across Q2. While earlier declines in palm oil prices reduced overall cost burdens, surging freight rates, inland transport delays, and widespread port congestion kept delivered costs elevated. These logistics challenges, tied to geopolitical disruptions and container shortages, outweighed feedstock-led cost relief.
• Fatty Acid Demand Outlook remained steady, supported by consistent procurement from the cosmetics, personal care, and paints sectors. Demand was driven by growing interest in eco-friendly and clean-label products, as well as specialty formulations in skincare and hybrid cosmetics. Although long-term purchasing was limited by tariff uncertainty, functional skincare and sustainable construction applications helped anchor baseline demand.
• Export momentum from China to key APAC markets faced headwinds due to unresolved trade tensions and elevated logistics costs. Rerouted shipments via the Cape of Good Hope and vessel delays at ports like Shanghai hindered export competitiveness. FOB offers were adjusted downward as suppliers responded to oversupply and subdued overseas demand.
• Domestic procurement across China, particularly in the Yangtze River Delta and Pearl River regions, remained moderate in Q2. Infrastructure-linked coatings demand and steady interest in tailored skincare formulations supported inland consumption, although downstream players maintained a conservative purchasing stance amid uncertain trade policy and evolving consumer trends.
North America
• Fatty Acid Price Index in North America declined by 6% quarter-on-quarter, with Stearic Acid (Triple Pressed, DEL USGC) settling at USD 2435/MT by late June 2025. The quarter started with a modest uptick in April, driven by tight inventories and elevated production costs, but prices lost momentum in May and June amid oversupply, declining feedstock costs, and subdued downstream demand.
• Why did the price of Fatty Acid change in July 2025 in the U.S.?
In early July 2025, the Price Index remained largely stable, supported by continued use in skincare and personal hygiene products within the mass-market personal care segment. However, downstream hesitation and elevated inventories, especially in the cosmetics sector, capped any substantial price rebound, even as logistical conditions improved at major West Coast ports.
• According to the Fatty Acid Price Forecast, prices are likely to stay rangebound through mid-Q3, influenced by moderate demand from the coatings and wellness sectors, a cautious procurement stance across personal care brands, and continued trade uncertainties. While feedstock price easing may help reduce cost burdens, buyer conservatism and sectoral shifts could limit any near-term upward momentum.
• The Fatty Acid Production Cost Trend eased slightly in Q2 due to falling palm oil prices and improved feedstock availability. However, producers maintained robust output levels, contributing to a saturated domestic market. With steady import volumes and no major bottlenecks across Gulf Coast terminals, surplus supply pressured spot prices even as input costs declined.
• The Fatty Acid Demand Outlook remained moderate through Q2, with stable consumption from the personal care and paints sectors. While skincare and hygiene segments sustained demand for stearic and lauric acids, cosmetics and haircare showed softer offtake, weighed down by shifting consumer preferences toward minimalist and value-driven routines. Growth in wellness and fragrance helped stabilize overall demand, though the market remained cautious.
• Imports into the U.S. held steady in Q2, with container volumes rising 1.8% in June. Activity at key West Coast ports—Los Angeles, Long Beach, and Tacoma—showed continued improvement, helping maintain supply chain resilience despite lingering global uncertainties. Elevated inventories and moderate downstream activity kept spot market engagement limited.
• U.S. production and supply levels stayed elevated in Q2, as manufacturers responded to earlier demand optimism and attempted to capitalize on easing input costs. However, downstream hesitancy and lackluster restocking across personal care and industrial buyers led to increased competition among suppliers, who adjusted pricing to stimulate transactions and prevent stock accumulation.
Europe
• Fatty Acid Price Index in Europe declined by 5.6% quarter-on-quarter, settling at approximately USD 4369/MT FOB Hamburg. This downward trend followed a temporary upturn in April, where constrained availability due to port congestion and early-quarter price optimism pushed rates higher. However, rising inventories, softer downstream demand, and weak international trade momentum drove price corrections through May and June.
• Why did the price of Fatty Acid change in July 2025 in Europe?
In early July 2025, the Price Index remained under pressure, as ample inventories from Q2 restocking, moderate production activity, and subdued procurement in the personal care and coatings sectors weighed on spot market sentiment. While some logistical bottlenecks persisted, improved feedstock access and stable domestic output limited further price escalation.
• The Fatty Acid Price Forecast for early Q3 points to a cautiously bearish-to-stable outlook, influenced by ongoing macroeconomic headwinds, uneven personal care demand, and excess supply across the region. Tariff-related trade challenges and tepid restocking behavior in key EU markets may limit any near-term recovery, though firm activity in niche skincare and coatings may offer marginal support.
• The Fatty Acid Production Cost Trend eased slightly in late Q2, with Rapeseed Oil prices falling on improved harvest forecasts and abundant supply. Nonetheless, logistics remained a cost driver, as port strikes, labor shortages, and road freight bottlenecks—particularly at Antwerp, Bremerhaven, and Le Havre—led to delivery delays and added pressure to inland distribution costs.
• The Fatty Acid Demand Outlook remained moderate to soft across Europe, with the personal care sector showing mixed trends. While science-backed dermatological skincare held up, broader consumption of mass-market products declined due to reduced travel retail and cost-conscious purchasing patterns. Paints and coatings offered stable baseline demand, but industrial offtake failed to offset the broader slowdown.
• European imports and internal trade flows faced disruptions during Q2, with congestion at Hamburg and Rotterdam affecting inbound cargoes. A surge in palm-based feedstock arrivals, particularly from Malaysia, added to the domestic oversupply. However, extended lead times and reduced exports to nearby markets like the Netherlands and France kept overall inventory levels elevated.
• Demand from Germany, Benelux, and Central Europe remained tepid in June, impacted by lingering uncertainty over retail recovery, logistics normalization, and discretionary consumer spending. While skincare innovation and premium product launches—such as L'Oréal’s acquisition of Medik8—highlighted long-term potential, short-term procurement remained restrained amid rising costs and soft end-market dynamics.
For the Quarter Ending March 2025
North America
In Q1 2025, the price of Fatty Acids in the U.S. experienced a significant downturn. This decline was predominantly influenced by the falling cost of palm oil, a critical feedstock for Fatty Acid production, and persistent economic uncertainties impacting consumer demand for personal care products.
January began with a bearish trend as decreased palm oil prices, driven by high inventories and reduced demand, pressured Fatty Acid pricing. Additionally, the steady health and personal care sector demand provided a mixed signal for further price stability. However, in February, prices fell due to cautious buyer behavior amidst inflation concerns and reduced consumer confidence, further straining profit margins.
March continued this negative momentum, with a sharper decline attributed to oversupply and sluggish demand in the cosmetics sector, exacerbated by tariff impositions. Overall, the Fatty Acid market witnessed continuous pricing challenges characterized by elevated inventories, reduced consumer spending, and a cautious market outlook, indicating a challenging landscape for manufacturers and suppliers moving forward through the next quarter.
APAC
The first quarter of 2025 displayed a notable downward trend in the fatty acid market, particularly in China, largely influenced by economic instability and supply chain disruptions. In January, fatty acids declined, driven primarily by a significant drop in palm oil prices. This downturn stemmed from reduced demand and a strong Malaysian ringgit that negatively impacted export competitiveness. Despite high inventory levels, which typically exert a downward price pressure, the forecast for palm oil shipments contributed an air of caution surrounding price movements.
February followed suit with a further price decline underlining the exacerbating effects of oversupply and weak consumer sentiment. Domestic producers attempted to lower prices to stimulate buying interest, but demand remained muted, particularly within the personal care sector.
March continued the bearish trend, with prices slipping further as participants remained hesitant to make bulk purchases, citing uncertainties stemming from tariff impositions. Overall, the first quarter reflected significant pressures on both demand and supply dynamics, with the beauty sector grappling with changing consumer preferences and increasing operational costs.
Europe
The fatty acid market in Germany experienced a bearish trend throughout the first quarter of 2025, primarily driven by ample supply and subdued demand dynamics. January began with prices under pressure, falling due to a significant drop in palm oil prices, a key feedstock in fatty acid production. Issues such as reduced palm oil demand for biodiesel and a strengthening Malaysian ringgit contributed to this decline. By the end of January, the market showed signs of weakness underpinned by economic uncertainties, despite some pockets of growth in the personal care sector.
February witnessed a continued price decrease, as suppliers struggled with oversupply, leading to cautious buying behaviors. Many participants opted for short-term restocking over bulk purchases due to economic instability and trade tensions impacting consumer spending.
In March, prices slipped further, reflecting ongoing market hesitance. Tariffs and geopolitical uncertainties added to the downward pressure on fatty acid demand, as major retailers revised forecasts downward amid declining consumer sentiment. Overall, Q1 2025 highlighted significant challenges for the fatty acid sector in Germany, shaped by external economic factors and changing consumer behaviors.
For the Quarter Ending December 2024
North America
In North America, the fatty acid market, particularly in USA experienced a significant price surge throughout Q4 2024, primarily driven by global palm oil market instability. October prices increased due to higher palm oil costs resulting from decreased Malaysian production and robust demand from Asia.
November saw a sharp 14.18% price increase due to severe Malaysian floods impacting palm oil supply. Moreover, Indonesian policy changes including B40 mandate and higher export taxes, restricted availability. December saw a further 2.1% price increase in USA. The final price increase in December resulted from persistently tight global palm oil supplies. This was compounded by strong US personal care sector growth, a shift towards premium products, and increased input costs.
The overall trend for the fourth quarter of 2024 revealed a significant upward trajectory in US fatty acid prices, indicating a substantial increase throughout the period. This upward trend underscores the considerable vulnerability of the US fatty acid market to fluctuations in the global palm oil market, as well as to the broader pressures of domestic inflation affecting input costs and raw material prices.
APAC
The APAC fatty acid market, particularly in Indonesia, experienced a substantial upward price trend throughout Q4 2024. The primary driver was the palm oil market's instability, characterized by supply disruptions, increased demand, and reduced inventories.
Indonesia experienced a rise in fatty acid prices in October. This was driven by higher palm oil prices resulting from increased demand from India and China, production declines in Malaysia (influenced by a dry season and a new tariff), and dwindling Indonesian stock levels. Strong demand from India's personal care sector, particularly for surfactants, further fueled the price increase.
As for November, Fatty acid prices in Indonesia surged by 23.2% , primarily due to a sharp rise in palm oil futures. This was attributed to supply disruptions in Malaysia (severe flooding impacting plantations and operations) and Indonesia's B40 policy. Indonesia's decision to raise export taxes and levies further complicated the situation, driving buyers towards Malaysia and increasing demand and prices there. Rising raw material costs presented significant challenges for the personal care sector in Indonesia.
Despite a smaller price increase of 1.8%, Fatty Acid prices remained elevated in December. Indonesia faced significant supply constraints due to low palm oil inventories, government policies favoring biodiesel, deforestation, and the nascent stage of sustainable intercropping. This tight supply situation, coupled with increased purchasing activity by Indonesian manufacturers and robust demand (driven by high personal care consumption and export growth), allowed manufacturers to raise prices to protect margins. The Indonesian manufacturing sector's improvement, with increased domestic and export orders, supported the modest production boost.
Europe
The Fatty Acid market in Europe experienced a strong upward price trend throughout Q4 2024. The primary driver was the palm oil market's volatility, influenced by supply disruptions, increased demand, and reduced inventories. While the personal care sector’s performance was mixed, the impact of supply-side constraints on palm oil dominated, resulting in a consistently bullish market for Fatty Acids during the quarter.
October's price increase stemmed from higher palm oil costs due to increased demand (India, China), Malaysian production declines (dry season, new tariff), and low Indonesian stock levels, compounded by strong German personal care demand.
November saw a 13.27% price jump, fueled by Malaysian flooding disrupting palm oil supply and Indonesian policy changes (B40). Increased export taxes in Indonesia diverted buyers to Malaysia, further escalating prices. While festive shopping boosted European personal care retail, rising input costs negatively affected manufacturers.
December maintained elevated prices due to Indonesia's low palm oil inventories and biodiesel policies creating a tight supply situation. Despite moderate year-end personal care demand, supply constraints kept prices high. Overall, Q4 2024 witnessed a consistently strong upward price trend for fatty acids, dominated by palm oil market instability.
