Lacklustre market purchases plummet European Erucic Acid prices

Hamburg, Germany- In November 2023, Erucic Acid witnessed a slight reduction of almost 1.5% in the European region amid depressed demand and fewer procurement activities from the end-user industries. The Erucic Acid production rates were firm in the region during the month due to increased availability of feedstock Rapeseed oil supplies and an increase in cultivation rates during the last month. Consequently, the Erucic Acid supply rates were consistent in the market as shipping rates were steady from the European hubs.

On the other hand, the Eurozone's Purchasing Manager's Index has consistently demolished in the past few months. As per the sources, it fell again in November 2023 due to a decline in new orders and buying activities from the buyers, indicating a subsequent contraction in the manufacturing sector activities. Consequently, the demand for Erucic Acid remained low in the regional market amid a decline in consumption rates from the food sector as the food sales index contracted by 1.1% in October 2023, according to Eurostat. Simultaneously, the demand remained low from the Biodiesel manufacturers amid a decline in demand for biofuels and consumption rates of fuel in the logistics sector. Meanwhile, orders remained moderate from personal care product manufacturers. The offtakes remained low from the buyers, which raised the Erucic Acid inventory levels in the regional market.

According to the ChemAnalyst data sources, the Erucic Acid prices in Germany witnessed USD 4708/MT FD Hamburg at the end of November 2023.

Meanwhile, during the last month, the Erucic Acid prices witnessed a marginal increment in the European market due to the moderately low availability of feedstock Rapeseed Oil supplies. As per the sources, the harvesting and sowing rates of raw material Rapeseed got delayed amidst wet soil conditions due to increased rainfall in the central part of the region. Consequently, the production rates of Erucic Acid were affected due to the weak availability of feedstock Rapeseed oil supplies amid a decline in Rapeseed Crushing rates. Hence, supply rates remained tight from suppliers amid moderation in consumption rates from the downstream industries.

As per the assessment, the Erucic Acid prices will decline further in the European region amid diminishing demand from the end-user industries. The decline in the demand for biofuels will negatively impact the Erucic Acid consumption rates as a precursor to Biodiesel. On the contrary, the supply rates will remain low during the winter holidays, and the production rates will remain stable amid moderate Rapeseed crushing activities as it is the mid-season for raw material Rapeseed production in the region.