For the Quarter Ending September 2025
North America
• In United States, the Palm Fat (Palm Stearin) Price Index rose in Q3 2025, driven by robust demand and rising costs.
• Production costs increased in Q3 2025 due to rising fertilizer prices and firm oleochemical feedstock costs.
• Demand for Palm Fat (Palm Stearin) remained strong in Q3 2025, supported by robust US food and bioenergy consumption.
• Low global palm oil inventories in Q3 2025 contributed to upward pressure on Palm Fat (Palm Stearin) prices.
• Strong retail sales, up 5.42% year-over-year in September 2025, bolstered consumer demand.
• The 3.0% year-over-year CPI increase in September 2025 raised operational costs for manufacturers.
• The 2.6% year-over-year PPI increase in August 2025 reflected rising input costs for producers.
• Palm Fat (Palm Stearin) demand outlook was moderately bullish, supported by stable 4.3% unemployment in September 2025.
Why did the price of Palm Fat (Palm Stearin) change in September 2025 in North America?
• Rising production costs from firm feedstock and increased natural gas prices in September 2025.
• Robust food and bioenergy demand, supported by 5.42% retail sales growth in September 2025.
• Low global inventories and escalated Malaysian export duties pressured prices upward.
Europe
• In Germany, the Palm Fat (Palm Stearin) Price Index fell quarter-over-quarter in Q3 2025, due to contracting industrial activity.
• Palm Fat (Palm Stearin) production costs eased in Q3 2025, driven by a 1.7% decrease in producer prices in September 2025.
• The demand outlook for Palm Fat (Palm Stearin) was challenged by a contracting Manufacturing Index in Q3 2025.
• Industrial production declined by 1.0% in September 2025, reducing demand for industrial applications.
• Consumer demand for end products was supported by a 0.2% rise in retail sales in September 2025.
• Rising consumer price inflation of 2.4% in September 2025 could dampen consumer purchasing power.
• A stable unemployment rate of 6.3% in September 2025 indicated consistent consumer income.
• European biofuel demand increased in Q3 2025, intensifying competition for residue oils.
• Policy changes in Q3 2025 continued the phase-out of palm oil in biofuels, highlighting rapeseed.
Why did the price of Palm Fat (Palm Stearin) change in September 2025 in Europe?
• Producer prices decreased by 1.7% in September 2025, lowering production costs for Palm Fat (Palm Stearin) derivatives.
• Industrial production declined by 1.0% in September 2025, reducing demand for industrial applications.
• Retail sales increased by 0.2% in September 2025, supporting consumer goods demand.
APAC
• In China, the Palm Fat (Palm Stearin) Price Index rose quarter-over-quarter in Q3 2025, driven by strengthening feedstock costs.
• Production costs increased in Q3 2025 due to strengthened Crude Palm Oil feedstock prices and rising freight charges.
• Demand for palm derivatives surged across Asia's personal care, cosmetics, and food industries in Q3 2025.
• China's industrial production expanded 6.5% year-on-year in September 2025, supporting raw material demand.
• Retail sales of consumer goods increased 3.0% year-on-year in September 2025, boosting end-use product demand.
• Palm oil stocks in China declined month-on-month in September 2025, indicating active buyer replenishment.
• The Manufacturing Index was contracting in September 2025, suggesting reduced overall industrial activity.
• Consumer Price Index decreased -0.3% year-on-year in September 2025, reflecting weak consumer purchasing power.
• Producer Price Index declined -2.3% year-on-year in September 2025, indicating pressure on producer margins.
Why did the price of Palm Fat (Palm Stearin) change in September 2025 in APAC?
• Crude Palm Oil feedstock costs strengthened in Q3 2025, directly increasing Palm Fat (Palm Stearin) production expenses.
• China's retail sales increased 3.0% year-on-year in September 2025, supporting demand for end-use products.
• Palm oil stocks in China declined month-on-month in September 2025, reflecting active inventory replenishment.
