For the Quarter Ending September 2024
North America
In Q3 2024, the Erucic Acid price trend oscillated in the North American region, showcasing moderate sentiments in the market. At the beginning of the quarter, prices witnessed a notable increase, driven by a combination of factors influencing the market dynamics. Factors such as steady demand, limited supplies, and cost support from feedstock Rapeseed Oil and affected supplies due to hurricanes in the region contributed to the overall bullish market sentiment, highlighting a stable and robust pricing landscape for Erucic Acid in the region.
In the middle of the third quarter, Erucic Acid production rates improved in the key producer in European region because of the improved availability of raw material supplies. The offtakes were moderate, and market players reduced their quotations. The correlation in price changes demonstrated a positive sentiment, with an increase in mid-Q3.
Towards the end of Q3, the impact of Hurricane Helene resulted in reduced manufacturing activities and demand from end-user industries and an increase in domestic stockpiles. The market players again reduced their Erucic Acid quotations.
APAC
Like the North American region, the Erucic Acid price trend in the APAC region has been characterized by a fluctuating pricing environment. Initially, the quarter witnessed a significant surge in demand for Erucic Acid from various industries, particularly the cosmetics and personal care sectors. This uptick in demand, coupled with moderate supply levels, led to a bullish market sentiment. Additionally, cost support from feedstock Rapeseed Oil contributed to the rise in production costs of Erucic Acid during the period, as upstream Rapeseed Oil availability was low due to disrupted weather affecting harvests in major producing regions. However, towards the end of the quarter, the Erucic Acid price trend shifted movement, and prices witnessed a decline due to improved inventory levels in the region due to reduced demand from biodiesel manufacturers and low offtakes from the food sector. At the same time, the demand was sluggish from the personal care product manufacturers, which raised the market inventory levels, and market players negatively revised their quotations to improve offtakes.
Europe
In Q3 2024, the Erucic Acid market in Europe seesawed and prices fluctuated throughout the quarter. Several factors influenced this trend, including ample supply levels, reduced demand from key industries like Biodiesel and Pharma, and moderate production costs supported by abundant Rapeseed Oil availability. In the mid-quarter, reduced production with a consistent decline in the Eurozone Manufacturing PMI Index resulted in low supplies to the market. It stressed the inventory levels amid firm offtakes. Supply-side dynamics also played a role, as supply availability was moderately low during the summer holidays creating imbalanced demand-supply dynamics. Yet demand failed to match this increase, as The Eurozone's beauty sector demand continued to remain robust, significantly impacting Erucic Acid consumption. Seasonality played a role as summer holidays resulted in labor shortages and reduced manufacturing rates, impacting supply chains. However, the Erucic Acid price trend again oscillated as production costs eased amid the increase in the feedstock Rapeseed Oil supplies in the market due to an increase in Rapeseed imports in the region. Conclusively, the quarter concluded with no change in previous quarter prices, reflecting the prevailing stability in the market.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Erucic Acid market experienced price increases driven by several key factors. Supply constraints due to production disruptions and plant shutdowns at major facilities contributed to the upward trend. Shortages of feedstocks, especially soybean and rapeseed oil, further exacerbated the supply-demand imbalance, pushing prices higher. Inflationary pressures and moderate operating rates at manufacturing units increased production costs. Although global freight costs decreased, logistical challenges and labor strikes particularly affecting air and ocean freight offset these reductions.
In the US, where price fluctuations were most pronounced, the market showed strong bullish sentiment. Increased energy consumption during the summer boosted demand for Erucic Acid in biodiesel production. Rising feedstock costs were closely linked to higher finished product prices, reflecting a tight supply chain. Prices rose compared to the previous quarter and saw an increase between the first and second halves of Q2, indicating a stable yet upward trend.
Overall, Q2 2024 marked a peak in the positive pricing environment for Erucic Acid in North America, driven by persistent supply constraints and strong demand from sectors such as pharmaceuticals and cosmetics.
APAC
In Q2 2024, the Erucic Acid market in the APAC region faced a downward pricing trend, with prices consistently falling in the second half of the quarter driven by several key factors. A drop in demand from major sectors like biodiesel and lubricants reduced market activity. Additionally, a slowdown in industrial production and economic activities across the region further decreased the need for Erucic Acid. Supply chain disruptions, including plant shutdowns and reduced capacity at major European facilities due to labor shortages and higher operational costs, also contributed to the negative pricing environment. In South Korea, Erucic Acid prices experienced the most significant changes, reflecting the broader regional trend. Seasonal factors, such as reduced industrial and consumer activity during the summer, led to lower demand. Prices fell by 4% from the previous quarter and by an additional 2% between the first and second halves of the quarter, highlighting the ongoing downward pressure. Overall, Q2 2024 was marked by a challenging pricing environment for Erucic Acid, driven by supply chain issues, plant shutdowns, and diminished demand across key sectors.
Europe
In Q2 2024, the European Erucic Acid market experienced increases in prices due to several significant factors. Supply constraints caused by production disruptions and plant shutdowns at key facilities contributed to the upward trend. Shortages of feedstock, particularly rapeseed oil, further intensified the supply-demand imbalance and pushed prices higher. Inflationary pressures in the Euro Area and moderate operating rates at manufacturing units increased production costs, adding to the price rise. Although global freight costs decreased, logistical challenges and labor strikes, especially affecting air and ocean freight, counterbalanced this reduction. In Germany, where price fluctuations were most pronounced, the market showed strong bullish sentiment. Increased energy consumption during the summer months boosted demand for Erucic Acid in biodiesel production. Rising feedstock costs were closely linked to higher finished product prices, reflecting a tight supply chain. Prices increased by 2% compared to the previous quarter and saw a 1% rise between the first and second halves of Q2, indicating stable but upward momentum. Overall, Q2 2024 marked a peak in the positive pricing environment for Erucic Acid, driven by persistent supply constraints and strong demand from sectors like pharmaceuticals and cosmetics.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, the Erucic Acid prices remained stable on the lower end compared to the last quarter in the North American market. At the beginning of the quarter, prices rose as the availability of stocks was moderate to low in the market, and consumption improved after the New Year holidays. Simultaneously, offtakes were firm from the Biofuel manufacturers as a precursor for Biodiesel for blending purposes.
During the mid-quarter, prices declined amid moderate offtakes, firm availability of previous stocks, and vigilant buying activities. At the same time, raw material Rapeseed prices fell due to an oversupply of sunflower oil, adversely affecting Erucic Acid production costs.
Towards the end of the quarter, the price trend revamped as the production costs escalated due to a hike in feedstock Rapeseed Oil prices amidst firm demand from buyers during winter. At the same time, the food sector exhibited a surge in demand for Erucic Acid due to increased consumer orders for the Easter festival. Simultaneously, demand was firm for Erucic Acid from cosmetics manufacturers for oil-based products.
APAC
During the first quarter of 2024, the price trend of Erucic Acid showcased a mixed market situation, and prices increased compared to the previous quarter in the APAC region. At the beginning of Q1, imports were affected by supply chain disruption and increased ship traffic at ship routes due to attacks on the vessel and Oil tankers passing through the Red Sea in the Middle Eastern region. Simultaneously, the demand was firm from the cosmetics manufacturers amid oil-based cosmetics demand during winter. In the mid-quarter, Rapeseed prices dropped 7% due to an oversupply of sunflower oil in the European market. It negatively impacted Erucic Acid production costs. Exporters dropped their quotations due to improved availability of supplies amid vigilant buying activities in the international market and reduced demand for emollient production in the Pharma sector. Towards the end of the quarter, the price trend rebounded as demand improved from Biodiesel manufacturers as Biodiesel procurement activities rose before the Ramadan festival in Southeast Biodiesel producer Indonesia. Simultaneously, orders were firm for flavoring agents from the food sector. At the same time, global air cargo demand experienced consecutive increases, driven by the expanding e-commerce sector and disruptions in shipping routes, particularly in the Red Sea region, leading to fluctuations in air freight rates and product supplies from exporters to the regional market.
Europe
The European Erucic Acid market remained stable on the lower end compared to the previous quarter in Q1, 2024. Initially, producers raised their quotations as orders were firm from the cosmetics manufacturers amid oil-based cosmetics demand during winter. Simultaneously, production costs escalated due to a hike in feedstock Rapeseed Oil costs as Rapeseed prices increased by 2% amid firm demand in the EU market. In the mid-quarter, regional suppliers dropped their prices amid improved inventory levels in the regional market because of affliction in supplies to international markets due to heightened ship traffic and increased shipping durations amid the Red Sea crisis and cautious buying activities from buyers. At the same time, the orders were low for food flavouring agents from the food sector due to a rise in food inflation. Towards the end of the quarter, a shortage of skilled labor resulting from rising racial tensions in the region disrupted production schedules. Simultaneously, Lufthansa's operations in Germany faced disruptions due to repeated strikes by cargo handlers affiliated with the Verdi Union, leading to low supply rates for international buyers. Despite this, demand was firm for Erucic Acid from cosmetics manufacturers for oil-based products. Consequently, prices rose in the EU market.
For the Quarter Ending December 2023
North America
The Erucic Acid price movement fluctuated in the North American region during Q4 2023. At the beginning of the quarter, prices increased amid an increase in the upstream costs due to the stressed availability of feedstock Rapeseed Oil prices.
Simultaneously, consumption rates were firm from the Biodiesel and personal care product manufacturers. In the mid-quarter, the price trend shifted as prices decreased due to a decline in offtakes from the Biodiesel industries amid reduced consumption rates in the logistics sector. However, orders were stable from the Pharma sector. Towards the end of the quarter, cost support declined as feedstock Rapeseed Oil prices fell amid an increase in upstream raw material Rapeseed production during December 2023.
Additionally, the improvement in the water levels of the Panama Canal due to heavy rainfall improved the supply chain activities and product supplies in the regional market. Simultaneously, orders remained low from the Biodiesel manufacturers. It raised the market inventory levels, and prices decreased at the end of the year.
Asia
In the final quarter of 2023, the Erucic Acid price trend oscillated in the APAC region as prices were impacted by factors such as supply constraints, demand from various sectors, and changes in the availability and cost of feedstock Rapeseed oil supplies. Meanwhile, the orders were firm from personal care product manufacturers amid the arrival of winter. In the mid-quarter, prices decreased as the market witnessed a moderate decline in demand from the food sector during the winter season. Simultaneously, orders fell as a precursor of Biodiesel from the Biodiesel manufacturers amid a decline in demand for biofuels in the Asia Pacific region. Towards the end of the quarter, prices rose noticeably amid supply chain disruptions and delayed supplies from the European region. The Houthi Rebels in Yemen attacked the vessels in the Red Sea, causing an increase in ship traffic and commercial vessels rerouted to the Cape of Good Hope, which increased the ship traffic and availability of supplies remained tight in the region.
Europe
Like the North American region, the Erucic Acid price trend shifted movement in the European region during the fourth quarter of 2023. Initially, supply rates were affected due to the tight availability of feedstock Rapeseed Oil supplies amid a decline in Rapeseed Crushing rates as sowing rates of raw material Rapeseed got delayed amidst wet soil conditions due to increased rainfall in the central part of the region. In the mid-quarter, consumption rates declined from the food sector because of a contraction in the food sales index by 1.1% in October 2023. Simultaneously, there was a decrease in offtakes and procurement activities, resulting in higher inventory levels. Meanwhile, the demand for Erucic Acid was suppressed from the Biodiesel manufacturers due to reduced consumption rates in the logistics sector amid a decline in the manufacturing sector activities. Towards the end of the quarter, cost support declined as feedstock Rapeseed Oil prices fell slightly amid an increase in upstream raw material Rapeseed production from 2.45 million tonnes to 2.82 million tonnes during December 2023. Simultaneously, orders remained low from the food sector amid a rise in inflation in the region and a decline in the food sector sales index by 0.5% during the past month. It raised the market inventory levels, and prices decreased at the end of the year.
For the Quarter Ending September 2023
North America
The Erucic Acid prices shifted movement in the North American region during the Q3 of 2023 amid moderate demand and supply dynamics. Initially, prices remained firm amid an increase in production costs due to high feedstock Rapeseed Oil prices. During the mid-quarter, prices surged again amid the stressed availability of Rapeseed Oil in the global market amid a decline in cultivation rates in the European region. Simultaneously, logistics duration increased due to affected U.S. shipping and freight routes amid the decline in Mississippi and Ohio river water levels and delayed shipping routes activities through the Panama Canal. Meanwhile, demand was firm from the Biodiesel manufacturers amid a rise in inflation and increased demand for Diesel due to the imposed cap by the U.S. on Russian Grade Crude Oil. Towards the end of Q3, the price trend shifted as prices declined amid improved supply rates. The production costs decreased due to a decline in feedstock Rapeseed Oil prices amid improved product availability in the global market. Simultaneously, demand fell from the food sector amid high inflation in the region, and suppliers revised their quotations negatively to improve offtakes.
Asia
In the Asian region, the Erucic Acid price trend showcased a bullish movement, and prices rose by almost 5% during the 3rd quarter of 2023. At the beginning of the quarter, the tightened rapeseed oil supplies in Europe due to affected Rapeseed cultivation amid dry weather conditions raised the upstream cost support. Simultaneously, disruption in supply chain activities increased the logistics duration. During the mid-quarter, orders were steady amid consistent consumption of food additives from the food sector and Biodiesel manufacturers. The availability inventory levels were inadequate, and supply rates were affected due to the El Nino effect and the occurrence of regional storms and typhoons like Doksuri Saola and heavy rains in the region. Meanwhile, the output of upstream raw material Rapeseed fell due to a decline in crop yield and area in key cultivating countries in the European region. It negatively affected the supply rates from Europe towards the end of Q3, and prices rose due to limited supplies. Simultaneously, orders for Erucic Acid increased from regional buyers due to the arrival of festivals and holidays in the region and the escalation in consumption and procurement activities from the food sector and Biodiesel producers.
Europe
The Erucic Acid prices oscillated in Europe during the Q3 of 2023. At the beginning of the quarter, the tightened rapeseed oil supplies in Europe due to affected Rapeseed cultivation amid dry weather conditions raised the upstream cost support. During the mid-quarter, buyers dropped their orders due to sluggish demand for acidity regulators from the food sector and fuel from Biodiesel producers. The high energy prices and hike in bank interest rates by European banks resulted in a decline in demand from buyers, causing a slowdown in the Eurozone growth. Meanwhile, the output of upstream raw material Rapeseed fell due to a decline in crop yield and area in key cultivating countries, i.e., France and Hungary, stressing the availability of feedstock Rapeseed Oil in the region. The Rapeseed Oil production rates declined amid a decline in Rapeseed crushing activities. It negatively affected the production rates towards the end of Q3, and prices rose due to limited supplies. Simultaneously, orders for Erucic Acid increased from Asian importers due to the arrival of festivals and holidays in the region and the escalation in consumption and procurement activities from the food sector and Biodiesel producers.
For the Quarter Ending June 2023
North America
In the North American region, the Erucic Acid prices witnessed contractions during the Quarter 2 of 2023. At the beginning of the quarter, the production and supply rates were stable amid increased labor costs, while the availability of supplies was firm due to the reduction in demand from end-user consumers. Then the feedstock Rapeseed Oil prices fell during the mid-quarter amid increased cultivation of Rapeseed, which reduced the upstream costs support on prices, and producers negatively revised quotations to improve the offtakes. The offtakes weakened from the Biodiesel producers due to declined fuel demand from consumers. Towards the end of the quarter, prices fell amid ample availability of supplies and cautious buying activities by buyers due to a hike in bank interest rates by the Federal Reserve, which decreased the product prices in the market. The consumption rates remained sluggish from the paint manufacturers due to the feeble demand for oil paints. Simultaneously, offtakes fell from cosmetics producers due to an increase in end-product prices in the region.
APAC
The Erucic Acid prices fell in Asia during Q2 of 2023. At the beginning of the quarter, exporters reduced their quotations amid declined trading activities due to feeble offtakes. During the mid-quarter, prices decreased amid increased Rapeseed cultivation and the consequent decline in cost support on feedstock Rapeseed oil, which reduced the production costs of Erucic Acid. At the same time, offtakes remained moderately low as a precursor of Biodiesel fuel from Biodiesel producers due to the declined fuel demand from consumers. Simultaneously, orders were reduced from the paint sector due to inadequate demand from coatings manufacturers. Towards the end of the quarter, Suppliers decreased the prices due to the depressed inquiries for cosmetics and daily care products from end-user consumers. At the same time, the decline in the consumption of Canola Oil as cooking Oil reduced the feedstock Rapeseed Oil prices and Erucic Acid production costs. Furthermore, trading activities intensified in China before the Dragon Boat Festival due to increased product procurement activities. However, reduced offtakes from the market raised the domestic inventory levels and negatively impacted the product market prices.
Europe
Like the Asian market, the Erucic Acid prices trend showcased bearish sentiments during Q2 of 2023. Initially, prices fell amid ample availability of product supplies and contraction in feedstock Rapeseed Oil prices amid reduced offtakes of Canola Oil from food sector consumers. During the mid-quarter, Erucic Acid prices were again revised negatively by suppliers due to the high availability of feedstock Rapeseed Oil amid increased Rapeseed cultivation in the European region’s key producing country France. Simultaneously, the offtakes were inadequate as a precursor of Biodiesel fuel, and demand remained sluggish due to declined fuel demand with temperature rise. Simultaneously, orders for Erucic Acid were moderately low from the paint sector. The contraction in the price intensified at the end of quarter 2, amid firm availability of supplies and reduced buying activities. The increase in bank interest rates by European Central Bank during June caused an economic slowdown as buyers were conscious while making purchases. At the same time, higher mortgage rates impacted the household finances. Consequently, end-user consumers reduced their consumption of daily care products and cosmetics, and the producers revised their quotations negatively to improve the offtakes.
For the Quarter Ending March 2023
North America
Throughout the USA, Erucic Acid's price has fluctuated throughout the first quarter of 2023. The demand for the product was low due to the fewer orders from domestic and overseas markets. As overseas client demand conditions remained historically poor, new export orders declined for ten straight months at the end of the first quarter. Participants in the market claim that the US market has seen a decline in new orders and that demand from the downstream plastic, lubricants, and printing inks sectors has been poor to stable.
APAC
Due to rising consumption from the downstream sectors, erucic acid prices have been on the rise in Asia. Following the hiccups brought on by the abrupt release of COVID-19 limits in December 2022, China's economy expanded more quickly than anticipated. Erucic acid was in high demand as a result of the booming downstream lubricants and plastics industries' procurement activities as well as efforts to replenish the market's supply of the substance. Additionally, as inflationary pressures have started to subside, global financial conditions have improved. In contrast, India's prices remained consistent throughout the first quarter of 2023.
Europe
The first quarter's price of Erucic Acid dropped in the first two months before rising in the last month. Due to the decline in economic activity in Europe, the demand for the product did not increase from the downstream lubricants, printing inks, and plastics industries. High inflation weakened purchasing power and caused consumption to decline, which caused the German economy to be sluggish in the first quarter. There was little Erucic Acid demand in the downstream business, and most downstream procurements were driven by demand. Due to a minor increase in the product's demand in the final month of the quarter and an insufficient supply in the market, the product's price increased.
For the Quarter Ending December 2022
North America
During this quarter, the Erucic acid markets in North America, Asia, and Europe were identical to one another. The primary cause of the price drop in the United States was the decreased demand for this product from paint and lubricant manufacturers for their production needs. The lower cost of rapeseed, the base material used in the production of this commodity, was another factor that contributed to the decrease in costs during this quarter. The price of this commodity also decreased as a result of a decline in export orders from Europe. As a result, there were sufficient quantities in stock, and suppliers were lowering their prices in an effort to boost sales.
APAC
This quarter, the Asia-Pacific market for erucic acid followed a similar pattern. In the case of China, the price of this product decreased in the first month; however, in November, the price increased due to the limited availability of this commodity in inventories as a result of lower domestic production and lower imports from Europe. In December, the price was lower than the price in October. Due to moderate demand from paints and lubricants manufacturing companies for downstream processing, the price was got lowered in this quarter. The lower prices of rapeseed, the product's base material, were another factor that contributed to the product's lower cost. During this quarter, the market for erucic acid in India was identical to China's.
Europe
In this quarter, markets for erucic acid in Europe also performed moderately. Numerous factors had a significant impact on this product's demand. According to market participants, both upstream and downstream businesses were worried about rising energy costs as a result of the ongoing conflict between Russia and Ukraine. As a result, they reduced their production, which resulted in a decrease in demand for this product. Suppliers, too, reduced their imports from the U.S. for the same reason. Due to the lowered cost of rapeseed, this product's price also got reduced. This commodity's exports to India and China significantly decreased as a result of the decreased production activities, which too contributed to the product's underperformance in the market this quarter.
For the Quarter Ending September 2022
North America
This quarter, the markets for Erucic Acid in North America also experienced the same trend as the markets in Asia-Pacific. The decrease in the price of rapeseed had a significant impact on this product's prices along with the strengthening of the US dollar. The prices of this product were also affected by the moderate demand for it from businesses downstream, and because of this, at times, the demand-supply ratio of this product remained stable.
APAC
In the Asia-Pacific region, the price of erucic acid had decreased. Erucic acid prices decreased in India for two primary reasons: the average interest exhibited by lubricants, paint, and downstream processing companies in this product and the lower prices of rapeseed, the base materials used in the production of this product. In the case of China, severe power shortages caused both upstream and downstream businesses to completely halt or reduce their production rates, resulting in the price drop of this product. The manufacturing activities and the price of this product were both affected by China's government's implementation of the zero covid strategies. Hence, erucic acid closed its market in China this quarter at USD 4,992 per MT on CFR – Shanghai basis.
Europe
European markets saw price reductions for erucic acid as well. Erucic acid demand was significantly influenced by several factors. Erucic acid demand was being impacted, according to market participants, by consumer concerns about inflation, the ongoing conflict between Russia and Ukraine, and an approaching energy crisis. In addition, supply chain delays made it difficult for customers to pass on ongoing cost increases. Because of these, downstream companies had to lower their production rates. Hence, in Germany, erucic acid closed its market this quarter at USD 6,085 per MT on FD – Hamburg basis.
For the Quarter Ending June 2022
North America
In North America, the price of Erucic Acid fluctuated throughout the Q2 of 2022, backed by mixed market sentiments. In the first half of Q2, the prices decreased due to a decrease in demand from the downstream industries. High inventories are present in the market, leading to a decrease in price, and ample stock is available to feed the consumer's needs. Moreover, in the second half of Q2, the prices were upward in the second month of the quarter due to limited stock and high consumption from the consumer's end. While in the second month, the prices were lowered again due to high inventories of raw materials, Rapeseed oil in the market, and the input cost also declined.
Asia Pacific
In Asia-Pacific Region, the price of Erucic Acid fluctuated throughout the Q2 of 2022, owing to mixed market sentiments. In the first half of Q2, the prices increased in the market in South Korea due to low inventories. The demand from the end-use industries was also high, especially from the lubricants and biofuels sectors, and the product unavailability triggered the market pressure for the product. Moreover, in the second half of Q2, the prices increased in India in the second month due to demand from the lubricants industries. Moreover, in the last month of the quarter, the prices were lowered in the domestic markets of India due to the surplus availability of the raw materials that is rapeseed oil.
Europe
In Europe, the price of Erucic Acid fluctuated throughout the Q2 of 2022 due to the unpredictable market dynamics. In the first half of Q2, the prices were increased in the first month due to high demand from the end-use industries, including plastics, lubricants, lacquers, and detergents. However, the prices were on a downward trajectory in the second month of the quarter, backed by a consistent increase in price, thus, decreasing the demand. Moreover, in the last month of the quarter, the prices increased due to the high input cost and the rise in raw materials, mainly rapeseed oil. Thus, the price of the product remained fluctuated throughout the quarter.
