The Erucic Acid price trend showcased bullish movement in the European region during March 2025. Low domestic crushing of rapeseed and a drop in rapeseed oil imports led to moderate Erucic Acid production, along with rising rapeseed oil prices. Supply situations were further impacted by trade issues, including U.S. tariffs and port congestion. At the same time, demand for Erucic Acid grew, especially in cosmetics, personal care, and pharmaceuticals. Prices for Erucic Acid are expected to rise in Q2 2025 due to higher rapeseed oil costs, increased demand, and higher shipping costs.

Domestic crushing rates of raw material rapeseed to produce rapeseed oil stayed low due to increases in rapeseed costs during March 2025, and imports of rapeseed oil fell by 21% in March 2025. Consequently, the production rates of Erucic Acid remained intermediate due to rising Rapeseed Oil prices in the region. At the same time, the Erucic Acid supply was affected by trade challenges within Europe, as external trade tensions and operational issues at key ports caused delays. U.S. tariffs on European goods added uncertainty, and congestion at major ports like Rotterdam, Bremerhaven, and Antwerp further complicated matters. Southern European ports, such as Port Said and Tangier, also saw increased yard density, leading to adjusted vessel schedules and operational changes to keep the supply chain running smoothly.

At the same time, the demand for Erucic Acid grew in March 2025, especially in industries like cosmetics, personal care, and pharmaceuticals. In the Cosmetics & Personal Care sector, it is used in products like skin creams, hair treatments, and anti-aging formulas. As consumers look for more natural and sustainable ingredients, Erucic Acid is becoming more popular because it fits well with the trend for clean beauty. In the Pharmaceutical sector, it is used to help deliver drugs more effectively, especially in treatments for diseases like cancer. As the pharmaceutical market expands, especially in areas like specialty generics, Erucic Acid's role in improving medicine effectiveness increases its demand. Both sectors are focused on innovation, which is also helping to drive more use of Erucic Acid.

In the upcoming week of Q2 2025, the Erucic Acid prices are anticipated to increase, potentially supported by a recovery in demand from the food and pharmaceutical sectors. This upward price pressure could be further amplified by anticipated increases in feedstock Rapeseed Oil costs, leading to higher production expenses. Additionally, elevated freight costs, driven by increased shipping activities amidst favorable summer trade conditions, are also expected to contribute to the overall price increase of Erucic Acid.

However, the launch of cash-settled futures for European rapeseed oil by CME Group in April 2025 is expected to stabilize rapeseed oil prices, enhancing market liquidity, and providing hedging options. This could lead to more stable Erucic Acid production and pricing, as producers can better manage price fluctuations and supply chain risks, potentially reducing volatility in the market.