European Erucic Acid Prices Fall Amidst Declining Production Rates, Asia Follows Bullish Trend

In August 2023, suppliers decreased the Erucic Acid prices by almost 3.5% in Europe amid an increase in upstream Rapeseed sowing activities in the region. As per the sources, upstream Rapeseed stocks increased in Northern Europe amid depressed offtakes from Biodiesel producers. Consequently, the Rapeseed Oil production rates fell negligibly from the previous month amid a decline in Rapeseed crushing activities. After remaining firm for a couple of months, i.e., June and July, the Rapeseed Oil prices shifted in August and fell due to a drop in profit margins. It impacted the production rates and simultaneously reduced the production costs of Erucic Acid.

According to the ChemAnlayst data sources, the Erucic Acid prices in Germany witnessed USD 4480/MT. Meanwhile, in China, the import prices of Erucic Acid prices hovered at USD 4890/MT.

Market sentiments were bearish in Europe, and buyers dropped their orders due to declined demand from Biodiesel producers amid dampened demand for fuel in the region. Simultaneously, orders were depressing from the food sector as well. The availability of Erucic Acid supplies was moderately low in the market amid sluggish offtakes from buyers due to a reduction in the Purchasing Manager’s Index of the Eurozone. As per the sources, the high energy prices and interest rates resulted in a decline in buyer demand and caused a slowdown in economic growth. Simultaneously, the supply chain activities remained slightly affected because of the summer holidays in the region.

On the contrary, market sentiments were bullish in the Asian Pacific region, and import prices of Erucic Acid increased by 2% during August 2023. The consumption rates of upstream Rapeseed decreased in Rapeseed oil mills, and it negatively impacted the production rates of Erucic Acid. Inventory levels were under-stressed due to low production rates and affected supply chain activities because of storms and typhoons in the region. The occurrence of typhoon Doksuri at the end of July 2023, typhoon Khanun during mid-August 2023, and Saola towards the end of the month impacted the supply chain in the region, along with heavy rainfall in some parts of Asia. Furthermore, In India, suppliers raised the Erucic Acid prices amid stressed availability of inventories because of the monsoon and improved consumption rates of food additives from the food sector due to the arrival of the festive season in the country. Simultaneously, demand escalated for Erucic Acid from the Biodiesel producers towards the end of the month because of high fuel demand amid an increase in traveling and logistics activities. Meanwhile, Erucic Acid inquiries were moderate from the Pharma sector and personal care product manufacturers.