Fatty Acid Prices: Market Analysis, Trend, News, Graph and Demand
North America
In North America, particularly in the United States, the fatty acid market witnessed a marked price escalation throughout Q4 2024. This surge was largely driven by volatility in the global palm oil market. In October, prices climbed due to elevated palm oil costs, which stemmed from reduced Malaysian production and strong demand from Asia.
In November, prices rose sharply by 14.18%, largely due to severe flooding in Malaysia that disrupted palm oil supply. Additionally, Indonesia's implementation of the B40 biodiesel mandate and the imposition of higher export taxes further tightened global availability. December recorded a further 2.1% price increase in the U.S., fueled by persistent global supply constraints. This was exacerbated by robust growth in the domestic personal care sector, a shift toward premium products, and increased raw material and input costs.
Overall, the fourth quarter revealed a sustained upward trajectory in U.S. fatty acid prices. This trend highlights the market’s sensitivity to global palm oil dynamics and the broader inflationary pressures impacting input costs across the supply chain.
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Asia-Pacific (APAC)
The APAC fatty acid market, with a particular focus on Indonesia, experienced a significant upward price trend throughout Q4 2024. The primary catalysts were disruptions in palm oil supply, intensified demand, and declining inventories.
In October, Indonesia saw price increases driven by strong palm oil demand from India and China, declining Malaysian output (due to dry weather and new tariffs), and falling domestic stock levels. India’s personal care sector, especially the surfactants segment, contributed to the upward pressure.
November witnessed a steep 23.2% surge in fatty acid prices, underpinned by spiking palm oil futures. The surge was linked to Malaysia’s flood-induced supply disruptions and Indonesia’s domestic policy shifts, including the B40 mandate and elevated export levies. These changes reduced available supply, pushing buyers toward Malaysian sources and further driving up prices. Rising input costs posed additional challenges for Indonesia's personal care manufacturers.
In December, prices remained elevated despite a smaller increase of 1.8%. Supply-side constraints persisted due to low palm oil inventories, prioritization of biodiesel production, environmental challenges such as deforestation, and the early stages of sustainable intercropping initiatives. Strong demand from both domestic and export markets, particularly in the personal care sector, enabled manufacturers to increase prices in order to maintain margins. Improvements in Indonesia’s manufacturing sector further supported modest production gains.
Europe
The European fatty acid market followed a strong upward price trajectory throughout Q4 2024, primarily driven by palm oil market volatility caused by global supply disruptions, surging demand, and inventory depletion. While the personal care sector displayed mixed performance across the region, the overarching influence of palm oil constraints dictated market dynamics.
In October, prices rose as a result of elevated palm oil costs, attributed to rising demand from India and China, Malaysian production challenges due to dry conditions and new tariffs, and low stock levels in Indonesia. Demand from Germany's personal care industry further intensified the pressure.
November brought a 13.27% spike in prices, largely caused by flooding in Malaysia that hampered palm oil production. Indonesia’s introduction of the B40 mandate and export tax hikes pushed more buyers to source from Malaysia, amplifying upward pressure on prices. Though festive retail activity boosted demand in the personal care segment, rising input costs posed significant challenges for manufacturers.
December maintained these elevated price levels, with Indonesian supply still constrained by low inventories and government policies prioritizing biodiesel production. Even with moderate year-end demand from the personal care sector, limited supply ensured prices remained high. Overall, Q4 2024 was characterized by a sustained bullish trend in the European fatty acid market, driven chiefly by global palm oil instability.
Get Real time Prices for Fatty Acid: https://www.chemanalyst.com/Pricing-data/fatty-acid-1257
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