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.
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.
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.
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.
