For the Quarter Ending March 2024
North America
During the first quarter of 2024, the Oleic acid market in North America experienced notable price fluctuations influenced by several factors, resulting in a volatile pricing environment. The quarter concluded with Oleic acid priced at USD 1480/MT CFR Houston, showing an average quarterly increase of 1.63%.
A significant driver of these price changes was the sustained demand from the downstream sector, prompting bulk orders and subsequent proactive price hikes by market participants. Geopolitical tensions and trade disruptions, such as disturbances in crucial shipping routes like the Red Sea and the Suez Canal, also played a role in the price volatility. These disruptions led to higher freight charges and logistical bottlenecks, further impacting pricing dynamics. North America's heavy reliance on Oleic acid imports, particularly from China, was a notable factor influencing market trends. Fluctuations in Chinese production, including pauses during the Lunar New Year and Spring Festival, resulted in constrained shipments and limited US inventories, prompting market players to adjust their quotes to protect profit margins.
In exporting regions, prices surged due to insufficient inventories and delayed supplies, prompting US market players to make bulk orders to ensure ample stocks, which worsened the price hike. External factors like the National Oceanic and Atmospheric Administration's warning of potential Mississippi River bottlenecks for the third year in a row due to warm, dry spring weather and low winter snowpack added to worries about shipment disruptions. This led to increased inquiries from US market players to exporting nations, further driving up prices.
Asia Pacific
In Q1 2024, the Oleic acid market in the APAC region, particularly in China, experienced notable price fluctuations but maintained an optimistic trend, with prices steadily rising. By the end of the quarter, Oleic acid's price in China reached USD 1305/MT CFR Shanghai, showing an average quarterly increase of 1.45%.
This positive pricing trend was driven by several factors. Increased demand from downstream sectors, along with rising raw material costs like palm oil, contributed to the price hike. Limited supply and transportation challenges further pushed prices up. International demand also intensified, especially after the Lunar New Year break, stimulating a resurgence in the market. Despite temporary slowdowns during the holiday period, both regional and global interest in Oleic acid bounced back strongly. A robust export market in China supported prices, although transportation delays and higher shipping costs due to increased demand posed challenges. Overall, the market is experiencing price increases due to scarcity, with demand outpacing supply, indicating a need for market equilibrium. Moreover, external factors such as trade disruptions in the Red Sea have exacerbated the situation, resulting in escalated freight costs and diminishing foreign orders.
Europe
During the first quarter of 2024, the European market for Oleic acid, particularly in CFR Rotterdam, Netherland, experienced pricing fluctuations influenced by several factors. Despite concluding at USD 1430/MT with a modest 1.44% quarterly incline, the market generally trended upwards due to heightened demand from downstream sectors. This demand surge, along with global supply chain disruptions, especially in the Red Sea region, caused shipment delays and material shortages, thereby driving prices up. Currency fluctuations, such as the Euro's depreciation against the dollar, further complicated matters, impacting import costs and freight charges.
The German Oleic acid market experienced a significant recovery, marked by rising prices and a balanced supply-demand scenario. This resurgence was fueled by increased regional orders and a gradual reduction in inventory levels by merchants. Additionally, the rise in prices of crucial raw materials and the Euro's devaluation against the dollar played roles in shaping market dynamics.
Netherland's position as a major importing hub contributed to market conditions, closely linked to exporting nations' trends. The resumption of production in exporting countries after holiday breaks and the easing of trade disruptions further supported market resilience across importing nations. Overall, the Oleic acid market in Europe experienced fluctuations driven by demand spikes, supply chain disruptions, and currency fluctuations, with Netherland's market playing a pivotal role in regional dynamics.
For the Quarter Ending December 2023
North America:
In the North American region, the Oleic Acid market encountered various influences on prices during the fourth quarter of 2023. Challenges arose due to an oversupply and subdued demand from downstream industries, leading to a significant price decline throughout the quarter. The surplus inventory, fueled by heightened production activities and raw material availability, exerted downward pressure on prices. Complicating the situation were upstream factors, particularly the decrease in Sunflower oil prices. In December, Sunflower oil prices persistently dropped due to continuously reduced demand.
In the USA, the price of Oleic Acid (Food Grade) CFR Houston concluded the quarter at USD 1410/MT, showing an average quarterly incline of 0.01%. The price remained steady throughout the quarter, with no notable percentage change from the previous quarter or the corresponding quarter of the previous year. The market outlook for Oleic Acid in the USA was shaped by factors such as ample supply, low demand, and seasonal variations.
However, prices experienced an increase in the middle of Q4 2023 due to a rise in global shipping costs, impacting import volumes and further influencing market dynamics. Businesses actively replenished their inventories through substantial order placements, enhancing market strength. As a major importer, the United States mirrored the price trends of exporting countries, resulting in a substantial price reduction.
Asia Pacific:
The Oleic Acid market in the APAC region encountered various factors influencing pricing dynamics during the fourth quarter of 2023. Primarily, a substantial surge in production activities led to an oversupply of Oleic Acid, contributing to a significant price decline. This surplus, combined with diminished demand from both domestic and international buyers, further exacerbated the downward trend in prices. Additionally, the market faced challenges stemming from decreased consumer interest and a slowdown in industrial adoption, placing additional pressure on the demand for Oleic Acid.
In South Korea, specifically, there was a moderate to high supply of Oleic Acid, and abundant inventories ensured a consistent market flow. However, the demand for Oleic Acid in South Korea remained at a low to moderate level due to reduced consumer interest and a slowdown in industrial adoption. Regarding pricing trends in South Korea, the closing price for Oleic Acid (Food Grade) CFR Busan in the current quarter was documented at USD 1260/MT. Unfortunately, there is no information provided on the percentage change in price compared to the same quarter last year or the price comparison between the first and second half of the quarter.
In summary, the Oleic Acid market in the APAC region, particularly in South Korea, faced challenges in the fourth quarter of 2023 due to oversupply, weakened demand, and reduced consumer interest. These challenges were reflected in the pricing dynamics, resulting in a noticeable decline in prices.
Europe -
In the fourth quarter of 2023, the European region witnessed a decline in Oleic Acid prices, influenced by various factors impacting the market. Firstly, the cost of the primary raw material decreased, leading to reduced production costs for Oleic Acid manufacturers. Consequently, these cost savings were passed on to consumers, resulting in a price decrease. Secondly, an oversupply of Oleic Acid in the market exerted pressure on prices, prompting a reduction to clear existing stocks.
This shift in pricing dynamics has implications for market experts and traders who strategically built-up excipient stocks in anticipation of an expected surge in demand from their respective end-user sectors. The anticipation was rooted in the expectation of an increased influx of inquiries from the downstream sector, prompting proactive stockpiling.
Finally, the euro's weakening against the US dollar made imports more expensive, leading to a hesitancy in placing future quotations. In the Netherlands, which experienced the most significant price changes in the region, Oleic Acid prices decreased by 0.23% on an average quarterly basis. However, in the middle of Q4, Oleic Acid prices increased as businesses proactively replenished their inventories through substantial order placements, thereby strengthening the market. The quarter-ending price for Oleic Acid (Food Grade) CFR Rotterdam in the Netherlands is USD 1370/MT.
For the Quarter Ending September 2023
North America
In the third quarter of 2023, there was a notable shift in the pricing of Food Grade Oleic Acid delivered to Houston (USA). The cost declined from $1485 per metric ton in July to $1410 per metric ton by September, representing a substantial quarterly drop of 1.35%. This price fluctuation was predominantly influenced by an oversupply of Oleic acid at a global level, which had a significant impact on its market valuation. To address this challenge and mitigate potential losses, local traders strategically chose to reduce their price quotes, contributing to a broader decrease in the market's value. The significant decrease in Oleic acid prices can be attributed to a marked reduction in the cost of its primary raw material, Palm oil. This adjustment had a significant impact on the overall production costs of Oleic acid in exporting countries, leading to reduced prices. Furthermore, the European market, a key palm oil importer, closely followed the pricing trends set by the primary palm oil exporting nations, particularly Indonesia and Malaysia. As a result, the decline in Oleic acid prices reflects broader global market dynamics. Additionally, since North America is a major Oleic acid importer, and Malaysia is a significant exporter, the declining prices in competitive countries created a strong incentive for domestic firms to lower their own prices to remain competitive.
Asia Pacific
During the third quarter of 2023, there was a noteworthy and favorable change in the Oleic acid market. Prices for Oleic Acid (Food Grade) FOB Klang (Malaysia) decreased from $1260 per metric ton in July to $1130 per metric ton in September. This price variation signaled a substantial shift, resulting in an average quarterly decrease of 3.20%. The recent price drop in Oleic acid can be primarily attributed to a seasonal slowdown observed in the manufacturing sector. Local suppliers had accumulated significant inventories, possibly due to earlier optimistic demand expectations that did not materialize. This surplus supply put downward pressure on Oleic acid prices, making it challenging for suppliers to maintain their profit margins. Concurrently, the demand for Oleic acid also experienced a noticeable decline. The decrease in palm oil prices in Malaysia had a significant ripple effect on Oleic acid pricing. Malaysian palm oil, often used in Oleic acid production, had been undergoing a period of increased production, resulting in an oversupply in the global market. This oversupply was exacerbated by declining futures prices due to stagnant terminal demand and adverse weather conditions, which also affected the Oleic acid market. However, in the middle of Q3, both refined and crude Oleic acid prices saw an uptick, driven by rising palm oil prices as terminal oil demand improved and the palm oil market rebounded. Nevertheless, the Oleic acid market has since experienced a retreat in prices in the domestic markets of major exporting countries.
Europe
In the third quarter of 2023, there was a significant shift in the pricing of Food Grade Oleic Acid CFR Rotterdam (Netherlands). The price dropped from $1455 per metric ton in July to $1380 per metric ton by September, marking a notable quarterly decrease of 1.38%. This change in prices was primarily influenced by a surplus of Oleic acid on a global scale, which had a profound impact on its market value. To tackle this challenge and minimize potential losses, local traders strategically opted to reduce their price quotations, contributing to a broader decrease in the market's worth. The substantial decline in Oleic acid prices can be attributed to a significant reduction in the cost of its primary raw material, Palm oil. This adjustment significantly affected the overall production expenses of Oleic acid in exporting nations, resulting in reduced prices. Moreover, the European market, a major palm oil importer, closely tracked the pricing trends established by the leading palm oil exporting countries, namely Indonesia and Malaysia. Consequently, this decline in Oleic acid prices mirrors broader global market dynamics. Additionally, since the Netherlands is a major importer of Oleic acid and Malaysia is a primary exporter, the decreasing prices in competitive countries created a strong incentive for domestic companies to lower their own prices to maintain competitiveness.
For the Quarter Ending June 2023
North America
In the second quarter of 2023, Oleic acid prices in the US market increased significantly. The price was valued at the end of Q2 2023, representing an average quarterly incline of 3.01%. The US market witnessed an increase in Oleic acid prices, primarily driven by the rising demand. However, purchasing activity in the US remains inconsistent, leading local steelmakers to offer additional discounts to attract orders. Despite this, buyers are cautious about replenishing stocks of Oleic acid due to the volatility in raw material prices. The ongoing US reporting season has shown promising signs of growing profits, particularly in cyclical consumer goods, industrials, and the oil and gas sectors. The Consumer Price Index (CPI) has also exhibited positive development, providing a boost to the commodity complex. However, challenges such as higher interest rates, increased living costs, and reduced household savings may impede the upturn in the coming months. Although domestic demand has improved, export orders continue to decline, albeit at a slower pace. Subdued foreign demand conditions have been observed across various industries. Despite these challenges, firms have been able to pass on increased costs to clients due to more favorable demand conditions.
Asia
Oleic acid witnessed an optimistic market trajectory in the second quarter of 2023. The price was valued and acquired at the end of Q2 2023, with an average quarterly incline of 4.52%. With increased raw material palm oil and other edible oil prices in the domestic market the prices of Oleic acid were recorded to be on the higher end backed by the hiked-up demand from the domestic market. Also, sluggish inventories further supported the hiked-up trajectory. Malaysia's palm oil stocks fell 21% by end-March compared with the previous month. Exports surged in March up to 31% on the month and better than market expectations. Bullish market sentiments owing to the huge drawdown in inventories along with the high demand for palm oil further affected the Oleic acid market situation. Also, the war in Ukraine has disrupted the supply of sunflower oil, which is a major source of oleic acid. And weather-related disruptions have caused crop damage in some oleic acid-producing regions. On the positive side, the Malaysian economy continued to grow at a healthy pace, and there were signs that inflation was starting to moderate. However, there were also some concerns about the global economic outlook, and this weighed on investor sentiment.
Europe
The prices of Oleic acid across the European region throughout the second quarter displayed an upsurged market sentiment. The price was valued and acquired at the end of Q2 2023, with an average quarterly incline of 3.34%. Oleic acid's price trajectory had a major upward trend. The market's fundamentals revealed that rising domestic demand was the main driver of higher prices for Oleic acid in April. The market in the Netherlands will likely be driven by new production in exporting nations in response to rising demand and high energy prices. There have been some supply disruptions in the oleic acid market, which has led to a decrease in the available supply. This has put upward pressure on prices. There has also been increased demand for oleic acid in the Netherlands, which has also contributed to price appreciation. There is also some speculative trading in the oleic acid market, which is also contributing to the price appreciation. Speculators are buying oleic acid in the hopes that prices will continue to rise. Supply disruptions and increased demand have driven up Oleic acid prices. The oleic acid market has been experiencing some supply disruptions, which has led to a decrease in the available supply. This has put upward pressure on prices. Additionally, there has been increased demand for oleic acid in the Netherlands, which has also contributed to price appreciation. Speculative trading is also contributing to the price appreciation. Speculators are buying oleic acid in the hopes that prices will continue to rise.
For the Quarter Ending March 2023
North America
Oleic Acid costs declined in the first quarter of 2023 in the North American market, continuing a trend of a stable market. As a result of a decline in demand and more permissive export of tall Oil fatty acids, prices fell in the first half of Q1 of 2023. The second quarter saw a decrease in the price of Oleic Acid, which can be attributed in part to the ease with which raw materials can be obtained in nations that produce commodities as well as the plentiful supply of raw materials from exporting nations. More Oleic Acid was available at the time to satisfy the demand from the downstream food business. The first quarter saw North America's pricing trend continue to decline as a result of the decline in demand for downstream items. Toward the end of the quarter, the prices for Oleic Acid were assessed at around USD 1345/MT for CFR Houston in March.
Asia Pacific
Oleic Acid prices declined in the first quarter of 2023 due to stable market dynamics. In order to reduce the price of cooking Oil, the export of raw tall Oil fatty Acid was started, which also led to a decrease in the cost of other edible oils. Due to Malaysia's lax labor regulations, there is a constant need for oleic Acid; nevertheless, the supply is limited. Market sentiments weakened in the final month of the quarter as a result of lower demand from downstream industries, including the food industry. Lower upstream costs for raw materials and oleic Acid have also been a result of availability and a decline in local market demand. Toward the end of the quarter, the prices for Oleic Acid were assessed at around USD 1180/MT for CFR Shanghai in March.
Europe
In the first quarter of 2023, Oleic Acid prices in the European region kept declining. Price declines for Oleic Acid in the area during the first half of the quarter have primarily been attributed to lower raw material futures this quarter. Due to a consistent supply and low freight costs, the price trend for Oleic Acid has further decreased in the area. Due to the low price of Tall Oil fatty acids in Asian nations, which resulted in lower prices in the second half of Q1 and especially in the last month, Oleic acid levels considerably declined around the middle of the quarter. Oleic Acid prices decreased in the European region as a result of a mix of steady demand from the downstream sectors and the food industry, as well as inconsistent supplies in the global supply chain. Towards the end of the first quarter of 2023, the prices were assessed around USD 1305/MT for FOB Rotterdam in March.
For the Quarter Ending December 2022
North America
Oleic Acid costs declined in the fourth quarter of 2022 in the North American market, continuing a trend of a stable market. Prices decreased in the first half of Q4 of 2022 due to a drop in demand and more lax export laws for Malaysian palm oil. Oleic Acid costs fell in the second quarter in part due to the accessibility of palm oil resources in countries that manufacture goods as well as the ample supply of raw materials from exporting countries. To meet the demand from the downstream beauty industry at the time, more Oleic Acid was accessible. Due to the drop in demand for downstream products, North America continued its downward pricing trend during the most recent quarter. Toward the end of the quarter, the prices for Oleic Acid were assessed at around USD1480/MT for CFR Houston in December.
APAC
Oleic Acid prices declined in the fourth quarter of 2022 due to stable market dynamics. The export of raw palm oil was begun to lower the cost of cooking oil, which also caused the price of other edible oils to fall. Although there is a consistent demand for Oleic Acid due to Malaysia's labour laws, there is also a finite amount of supply. Decreased demand from downstream businesses, such as the personal care sector, in the last month of the quarter resulted in slackened market attitudes. More so, the availability and declining local market demand have resulted in lower upstream costs for raw materials and Oleic Acid. Toward the end of the quarter, the prices for Oleic Acid were assessed at around USD 1280/MT for CFR Shanghai in December.
Europe
In the fourth quarter of 2022, Oleic Acid prices in the European region kept declining. Prices for Oleic Acid in the region fell in the first part of the quarter, which has been mostly attributed to decreased palm oil futures this quarter. The price trend for Oleic Acid in the region has further declined due to an ongoing supply and affordable freight costs. Oleic Acid levels significantly decreased around the middle of the quarter as a result of the low price of palm oil in Asian countries, which reduced prices in the second half of Q4 and particularly in the last month. Because of a combination of sustained demand from the cosmetics industry and other downstream industries during the winter and erratic supplies brought on by disturbances in the global supply chain, Oleic Acid prices declined in the European region. Towards the end of the fourth quarter of 2022, the prices were assessed around USD 1420/MT for FOB Rotterdam in December.
For the Quarter Ending September 2022
North America
Oleic acid prices fluctuated in the third quarter of 2022 in the North American market, continuing a trend of an unstable market. Prices fell in the first half of Q3 of 2022 because of a decline in demand and easier export regulations for Malaysian palm oil. In addition, the paucity of palm oil resources in product-manufacturing nations and the insufficient supply of materials from exporting nations because of port congestion also had a role in the second quarter's increase in oleic acid prices. Less oleic acid was available during the time to meet the demand from the downstream cosmetic industry. North America had a continuation of the increasing pricing trend during the first quarter because of the increased demand for downstream products. Toward the end of the quarter, the prices for Oleic Acid were assessed at around USD 2550/MT for CFR Houston in September.
APAC
Oleic Acid prices changed in the third quarter of 2022 due to unpredictable market dynamics. The export of raw palm oil was begun to lower the cost of cooking oil, which also caused the price of other edible oils to fall. Although there is a consistent demand for Oleic Acid due to Malaysia's labor laws, there is also a finite amount of supply. Increased demand from downstream businesses, such as the personal care sector, in the last month of the quarter resulted in tighter market attitudes. More so, the limited availability and rising local market demand have resulted in higher upstream costs for raw materials and oleic acid. Toward the end of the quarter, the prices for Oleic Acid were assessed at around USD 2325/MT for CFR Shanghai in September.
Europe
In the third quarter of 2022, Oleic Acid prices in the European region kept fluctuating. Reduced palm oil futures this quarter have been primarily blamed for the region's declining Oleic Acid prices in the first half of the quarter. Continuous supply and cheap freight costs have further decreased the price trend for Oleic Acid in the Regional market. Because of the high cost of palm oil in Asian nations, which increased prices in the second half of Q3 and especially in the last month, Oleic Acid l prices rose considerably near the middle of the third quarter. Oleic acid prices increased in the European region because of a combination of stable demand from cosmetics and other downstream industries during the winter and erratic supplies brought on by disruptions in the global supply chain. Towards the end of the third quarter of 2022, the prices were assessed around USD 2405/MT for FOB Rotterdam in September.
For the Quarter Ending June 2022
North America
Oleic acid costs climbed in the second quarter of 2022 in the North American market, continuing a trend of rising prices. The lack of resources for palm oil in countries that manufacture products and inadequate supply of materials from exporting nations owing to port congestion also contributed to the increase in oleic acid costs during the quarter. Throughout the time period, fewer supplies of oleic acid were available to meet the demand from the downstream cosmetic business. Due to the increased demand for downstream products, North America saw a continuation of the pricing trend upward during the first quarter. Additionally, the cost of transportation increased due to the lack of shipping containers. Furthermore, the region's increasing need for paracetamol was influenced by the high prevalence of fever and headache.
APAC
Due to a lack of palm oil, Oleic Acid prices increased during the second quarter of 2022. The export of raw palm oil was prohibited in order to reduce the cost of cooking oil, which also led to the increase in the price of resorcinol. Due to the labour issue in Malaysia, there is a growing demand for oleic acid, but there is also a limited supply. Increased demand from downstream industries, including the personal care sector, led to tightening market attitudes. Due to a labour shortage, Asia is experiencing rising demand with limited supply, which has led to higher costs for raw materials and oleic acid upstream.
Europe
In the second quarter of 2022, Oleic Acid prices in the European region kept rising steadily. The rising costs of oleic acid across the region have been mostly attributed to the increased palm oil futures this quarter. The region's market trend for oleic acid has been further aggravated by protracted supply bottlenecks, labour shortages, port congestion, and high freight prices. Demand-wise, offtakes were consistent during Q2 2022. Due to the high palm oil price in Asian countries, the oleic acid levels increased dramatically toward the middle of the quarter. Oleic acid prices rose in the European region due to steady demand from the cosmetics and other downstream industries during the winter and unpredictable supplies due to global supply-chain interruptions.
For the Quarter Ending March 2022
North America
Prices of Oleic acid followed an upward trend, and the values increased in the North American market in the 1st quarter of 2022. Inadequate supply of materials from exporting countries due to port congestion and lack of the palm oil resources in manufacturing countries further led to the rise in the prices of Oleic Acid throughout the first quarter. Supplies of Oleic Acid to fulfill the demand from the downstream cosmetic industry remained less throughout the period. Oleic Acid prices in the US market were recorded at USD 3160 per tonne in February 2022.
Asia Pacific
Prices of Oleic Acid fluctuated in the Asian region during the first quarter of 2022. In February, feedstock palm oil prices increased significantly, which led to the rise in Oleic Acid values during the second half of Q1-2022. In Asia, the supply was deemed less than the demand due to the inadequate availability of palm oil in the Asian countries. High cost of raw materials led to rise in its downstream prices like Oleic Acid in Asia. Prices of Oleic Acid settled at USD 2109.8 per tonne in India and USD 2270 per tonne in Malaysia at the end of the first quarter.
Europe
Price trend of Oleic Acid remained firm in the European market in Q1-2022. The Oleic acid values rose significantly during the mid-quarter due to the high cost of palm oil in the Asian Countries. Due to the consistent demand from the downstream cosmetic and other industries during wintertime and uncertain supplies due to global supply-chain disruptions, the values of Oleic acid increased in the European region. In Germany, the prices settled at USD 3090 per tonne by the end of Q1 2022.
For the Quarter Ending December 2021
Asia Pacific
During the fourth quarter of 2021, the prices of Oleic Acid rose effectively across the Asia Pacific region on the back of the increased palm oil prices. In the Indian domestic market, the Oleic Acid prices escalated from USD 1801.72/MT to USD 1972.86/MT CFR JNPT from October to December.The price of the product remained on the higher side in India due to the prevalent demand pattern in comparison to its supplies. The Ex-Mumbai Oleic Acid prices were assessed at USD 2013.25/MT in November. The exports from Malaysia were observed high during November with respect to its competitor Indonesia due to a marginal reduction in its tax duties. The surge in the palm oil prices consistently pushed up the Oleic Acid production cost throughout the quarter. Furthermore, many traders were compelled to divert their cargoes of palm oil toward essentials, as consumers were facing a huge burden of high prices due to the prolonged scarcity of palm oil. Several factors affected the demand trend of Oleic acid as well as other palm oil derivatives in the country, including high freight cost, other logistical issues, and domestic consumption.
Europe
The prices of Oleic Acid continued to hop upwards in the 4th quarter of 2021 across the European region. The increased Benchmark palm oil futures in quarter four have largely contributed to the increased prices of Oleic acid across the region. The prices of agricommodity, i.e., crude palm oil, which is vital to Malaysian exports, reached new highs due to the reduction in the tax duties. The prolonged supply bottlenecks, labor shortages, port congestion, sudden spread of Omicron, and high container freight rates have further exacerbated the market trend of Oleic Acid across the region. In terms of demand, offtakes remained stable throughout Q4.
