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.
