Oleic Acid Prices Foresee a Downturn in the U.S.

USA: According to ChemAnalyst data, the price of Oleic Acid in the U.S. market stabilized in the last week of November 2022. Oleic Acid is utilized as an emulsifying or solubilizing ingredient in aerosol goods and an excipient in medications.

Falling prices of Oleic Acid, the main component, are primarily responsible for the downward price trend of Tall Oil Fatty Acid in the U.S. The U.S. government raised FED taxes, which impacted consumer demand and lowered goods prices in the domestic market. Prices for energy, food, and shelter increased, which contributed to gains in the all-items index. When the fall season progresses, there is a decline in demand from downstream sectors like paint and oil because of the weather. Winter and Fall seasons are the times when professional painters get the least number of clients. Low demand will translate to lower prices for the few customers that will require the services during this period which will further support the stability in the price of the product.

The increasing demand for Food and Beverages due to the growing global population is one of the main factors propelling the market for Oleic Acid. Oleic Acid is also primarily used to lower cholesterol and prevent heart disease. A form of Fatty Acid called Oleic Acid takes the place of saturated fats in the diet. Oleic Acid may help with cardiac problems by reducing inflammation and lowering cholesterol. Additionally, it is used to prevent cancer and other diseases, but until now, there has not been any solid scientific proof to back up these other uses. Despite all of this, the U.S. Food and Beverage industries are seeing a stabilization in demand as domestic companies have enough Oleic Acid on hand, necessitating fewer exports to major importing countries.

ChemAnalyst predicts that the price of Oleic Acid will fall in the coming month due to a drop in demand from end-use industries. The fall in price will be impacted by the product's high availability.