Indonesia
Malaysia
Netherlands
India
BrazilFatty acid prices rose sharply in Q1 2025, driven by a confluence of limited production capacity, strong downstream demand, and a sustained rally in palm kernel oil (PKO) prices. The quarter opened with tight availability across major Southeast Asian producers, while heightened interest from the personal care, detergent, and oleochemical sectors placed upward pressure on prices. Regional restocking in South Asia and firm contract buying from global buyers further contributed to bullish sentiment.
In particular, lauric acid, a key derivative, experienced robust gains amid constrained feedstock flows and logistical tightness. Market participants cited aggressive short-term procurement as a key driver of price strength. By the end of the quarter, Lauric Acid prices in Indonesia exceeded USD 2,000 per metric ton FOB Belawan, marking a strong quarterly performance.Â
Fatty acid prices further strengthened in Q2 2025, supported by firm demand dynamics across key end-use sectors and sustained strength in palm kernel oil (PKO) feedstock prices. The quarter witnessed over a 5% increase quarter-on-quarter, with gains building steadily on the pricing momentum observed in Q1 2025.
Demand remained robust from the personal care, surfactant, and industrial lubricant segments, while limited supply from select Southeast Asian producers further tightened market fundamentals.
Buyers in South Asia and the Middle East remained active, contributing to elevated trade volumes throughout the quarter. Despite occasional logistical disruptions, overall sentiment stayed firm. According to PriceWatch, Fatty acid (Lauric acid) prices were assessed at USD 2,140–2,200 per metric ton FOB Belawan, Indonesia, reflecting a strong finish to the quarter.Â
Fatty acid prices declined in the first half of Q1 2024, largely due to slow post-holiday demand and cautious procurement across key markets. However, the market gained momentum in the second half of the quarter, as demand picked up from Middle Eastern and South Asian buyers. This was supported by a post-monsoon recovery in industrial activity, and rising concern over El Niño-related production risks, which lifted market sentiment and encouraged restocking.
Traders noted a firming trend in late February through March, with palm kernel oil prices also beginning to strengthen. The quarter closed on a stronger note than it began, with increased confidence in forward supply dynamics. Fatty acid, Lauric acid, prices in Indonesia averaged USD 970 per metric ton FOB Port Belawan for the first quarter of 2024.Â
Fatty acid prices posted strong gains in Q2 2024, supported by tightening availability and firm international demand. Labor shortages in Malaysian plantations disrupted palm kernel oil production, leading to constrained feedstock availability and reduced fatty acid output. Buyers in India front-loaded purchases ahead of the monsoon, while European restocking activity resumed after prior inventory drawdowns. At the same time, tight fundamentals across the palm complex—including strength in CPKO and PKO—amplified bullish sentiment.
Despite rising input costs pressuring downstream margins, demand from surfactant, cosmetic, and industrial users held firm. Traders reported increased short-term buying and limited forward selling. This bullish environment drove Fatty Acid prices in Indonesia to their strongest quarterly level since 2021, with quarterly averages of Lauric acid at USD 1120 per metric ton FOB Belawan.Â
Fatty acid prices strengthened through Q3 2024 as the market rebounded from early summer lows. Demand accelerated from the home and personal care sectors, driven by seasonal consumption, school-season restocking, and robust global retail activity. September proved especially active, supported by a pickup in buying from South Asia and disruptions in alternative oil supply chains due to weather-related events in the U.S.
The European market saw renewed attention toward renewable and palm-based feedstocks, spurred by regulatory shifts favouring sustainable inputs. As a result, fatty acids maintained a premium over competing derivatives, with Malaysian and Indonesian exports leading global flows. Throughout the quarter, sentiment remained firm. Lauric acid prices in Indonesia stood at USD 1350 per metric ton FOB Port Belawan, reflecting steady market momentum.Â
Fatty acid prices surged in Q4 2024, supported by tightening supply fundamentals and renewed demand from key downstream sectors, particularly personal care and industrial lubricants. The market climbed to an 18-month high in December, driven by constrained availability of palm-based feedstocks and heightened global interest in bio-based ingredients. An unexpected uptick in European demand added pressure to already tight supply chains, while logistical congestion at Port Kelang further exacerbated delays and elevated price risks.
Buying momentum remained strong across most markets, with aggressive restocking evident in South Asia and the EU. The quarter’s steady upward trend reflected a structural imbalance between demand and supply. Lauric Acid prices in Malaysia averaged USD 1750 per metric ton FOB Port Kelang in Q4 2025, marking one of the strongest closes in recent years.Â
Molecular Weight[g/mol]
CAS No
HS Code
Molecular Formula
Fatty acids are long-chain organic compounds derived from plant or animal fats, essential in numerous industries including food, pharmaceuticals, and personal care. These acids play a key role in soap manufacturing, biodiesel production, and the creation of lubricants, detergents, and cosmetics. The major types include saturated fatty acids like stearic acid and unsaturated fatty acids such as oleic acid. Leading producers of fatty acids include companies such as Wilmar International, Cargill, and IOI Group, with the top production countries being Indonesia, Malaysia, and the United States. As demand grows for natural ingredients, fatty acids are gaining traction in the formulation of green and sustainable products across multiple sectors.
Packaging Type
Fatty Acid Grades Covered
Incoterms Used
Synonym
PriceWatch Quotation Terms:
Ex-Location: This incoterm refers to a shipping agreement where the seller makes the goods available at their premises, and the buyer is responsible for all transportation costs, including shipping, insurance, and any other fees.
CIF: CIF refers to the Cost, Insurance, and Freight (CIF) terms for goods. Under CIF terms, the seller is responsible for the cost of goods, insurance, and freight charges until the goods reach the port of destination.
FD: FD stands for Free Delivered where the seller takes full responsibility for delivering goods to the location/port. This ensures the buyer receives the goods at the designated port with all necessary costs, except import duties, covered.
FOB: FOB refers to the Free On-Board shipping term, where the seller is responsible for the cost and risk of delivering the goods to the port. Once the goods are on board the vessel, the responsibility shifts to the buyer for all costs, including shipping and insurance.
| Physical Property | Lauric Acid (C12) |
| Physical state | Small white free-flowing flakes/prills |
| Percentage (C12)Â | 100%Â |
| Colour | White to pale yellow |
| Odour | Neutral to slightly nutty |
| Melting point / freezing point | 43–46 °C |
| Boiling point or initial boiling point and range | >298 °C (decomposes before boiling) |
| Flammability | Non-flammable under normal conditions |
| Lower and upper explosion limit | Not applicable |
| Flash point | ~250 °C (open cup) |
| Auto-ignition temperature | ~350 °C |
| pH (value)Â | Not applicable (non-aqueous)Â |
| Kinematic viscosity | Not typically measured (solid at 40 °C) |
| Dynamic viscosity | Not applicable in solid state |
| Water solubility | Insoluble in water |
| Partition coefficient n-octanol/water (log value) | ~6.0–6.3 |
| Vapour pressure | Negligible at 20 °C |
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| Physical Property | Myristic Acid (C14) |
| Physical state | Small white free-flowing flakes/prills |
| Percentage (C14)Â | 99%Â |
| Colour | White to pale yellow |
| Odour | Neutral to faintly fatty |
| Melting point / freezing point | 52–54 °C |
| Boiling point or initial boiling point and range | >326 °C (decomposes before boiling) |
| Flammability | Non-flammable under normal conditions |
| Lower and upper explosion limit | Not applicable |
| Flash point | ~252 °C (open cup) |
| Auto-ignition temperature | ~360 °C |
| pH (value)Â | Not applicable (non-aqueous)Â |
| Kinematic viscosity | Not typically measured (solid at 40 °C) |
| Dynamic viscosity | Not applicable in solid state |
| Water solubility | Insoluble in water |
| Partition coefficient n-octanol/water (log value) | ~6.8–7.2 |
| Vapour pressure | Negligible at 20 °C |
Fatty Acid Applications
Fatty acids are essential in various industries: they improve hydration in personal care products, act as emulsifiers in food, and are key in biodegradable lubricants and cleaning products. They enhance drug stability in pharmaceuticals, serve as renewable biodiesel, and improve textiles and animal feed, showcasing their versatility and importance.
EU Renewable Directive Shift (2024):Â
In 2024, the European Union implemented stricter sustainability regulations, incentivizing the use of bio-based and renewable chemicals. This led to a structural increase in demand for palm-derived fatty acids, especially in personal care and industrial sectors. Prices responded with sharp gains, especially in Q4 2024.Â
Russia-Ukraine War & Energy Shock (2022):Â
The war disrupted sunflower oil exports and caused a global edible oil shortage, increasing reliance on palm-based alternatives. Crude oil price spikes also raised freight and processing costs. The dual impact of supply shift and inflationary pressures pushed fatty acid prices higher through mid-2022.Â
COVID-19 Pandemic Disruptions (2020–2021):Â
The global pandemic severely disrupted supply chains, including palm oil and its derivatives. Lockdowns led to reduced plantation labor availability in Malaysia and Indonesia, curbing palm kernel oil (PKO) production. Simultaneously, demand for fatty acids surged due to heightened consumption of hygiene and personal care products. This mismatch caused a spike in prices, especially during late 2020 and early 2021.Â
PriceWatch is your trusted resource for tracking global fatty acid price trends. Our platform delivers real-time data and expert analysis, offering deep insights into the key factors driving price fluctuations in the fatty acid market. By monitoring critical events such as geopolitical tensions, supply chain disruptions, and economic shifts, PriceWatch keeps you fully informed of market dynamics.
In addition, PriceWatch provides detailed forecasts and updates on production capacities, enabling you to anticipate market changes and make well-informed decisions. With PriceWatch, you gain a competitive edge in understanding all the elements that influence fatty acid prices worldwide. Stay ahead of the curve with PriceWatch’s reliable, accurate, and timely fatty acid market data.
Track PriceWatch's fatty acid price assessment on a weekly basis since 2015 onwards, along with short-term forecasts, and get access to the detailed report in a downloadable format.
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This research methodology ensures that PriceWatch delivers the most accurate, timely, and actionable fatty acid pricing assessments, helping our clients stay ahead of market trends and make informed business decisions.Â
Molecular Weight[g/mol]
CAS No
HS Code
Molecular Formula
Fatty acids are long-chain organic compounds derived from plant or animal fats, essential in numerous industries including food, pharmaceuticals, and personal care. These acids play a key role in soap manufacturing, biodiesel production, and the creation of lubricants, detergents, and cosmetics. The major types include saturated fatty acids like stearic acid and unsaturated fatty acids such as oleic acid. Leading producers of fatty acids include companies such as Wilmar International, Cargill, and IOI Group, with the top production countries being Indonesia, Malaysia, and the United States. As demand grows for natural ingredients, fatty acids are gaining traction in the formulation of green and sustainable products across multiple sectors.
Packaging Type
Grades Covered
Incoterms Used
Synonym
PriceWatch Quotation Terms:
Ex-Location: This incoterm refers to a shipping agreement where the seller makes the goods available at their premises, and the buyer is responsible for all transportation costs, including shipping, insurance, and any other fees.
CIF: CIF refers to the Cost, Insurance, and Freight (CIF) terms for goods. Under CIF terms, the seller is responsible for the cost of goods, insurance, and freight charges until the goods reach the port of destination.
FD: FD stands for Free Delivered where the seller takes full responsibility for delivering goods to the location/port. This ensures the buyer receives the goods at the designated port with all necessary costs, except import duties, covered.
FOB: FOB refers to the Free On-Board shipping term, where the seller is responsible for the cost and risk of delivering the goods to the port. Once the goods are on board the vessel, the responsibility shifts to the buyer for all costs, including shipping and insurance.
| Physical Property | Lauric Acid (C12) |
| Physical state | Small white free-flowing flakes/prills |
| Percentage (C12)Â | 100%Â |
| Colour | White to pale yellow |
| Odour | Neutral to slightly nutty |
| Melting point / freezing point | 43–46 °C |
| Boiling point or initial boiling point and range | >298 °C (decomposes before boiling) |
| Flammability | Non-flammable under normal conditions |
| Lower and upper explosion limit | Not applicable |
| Flash point | ~250 °C (open cup) |
| Auto-ignition temperature | ~350 °C |
| pH (value)Â | Not applicable (non-aqueous)Â |
| Kinematic viscosity | Not typically measured (solid at 40 °C) |
| Dynamic viscosity | Not applicable in solid state |
| Water solubility | Insoluble in water |
| Partition coefficient n-octanol/water (log value) | ~6.0–6.3 |
| Vapour pressure | Negligible at 20 °C |
Â
| Physical Property | Myristic Acid (C14) |
| Physical state | Small white free-flowing flakes/prills |
| Percentage (C14)Â | 99%Â |
| Colour | White to pale yellow |
| Odour | Neutral to faintly fatty |
| Melting point / freezing point | 52–54 °C |
| Boiling point or initial boiling point and range | >326 °C (decomposes before boiling) |
| Flammability | Non-flammable under normal conditions |
| Lower and upper explosion limit | Not applicable |
| Flash point | ~252 °C (open cup) |
| Auto-ignition temperature | ~360 °C |
| pH (value)Â | Not applicable (non-aqueous)Â |
| Kinematic viscosity | Not typically measured (solid at 40 °C) |
| Dynamic viscosity | Not applicable in solid state |
| Water solubility | Insoluble in water |
| Partition coefficient n-octanol/water (log value) | ~6.8–7.2 |
| Vapour pressure | Negligible at 20 °C |
Applications
Fatty acids are essential in various industries: they improve hydration in personal care products, act as emulsifiers in food, and are key in biodegradable lubricants and cleaning products. They enhance drug stability in pharmaceuticals, serve as renewable biodiesel, and improve textiles and animal feed, showcasing their versatility and importance.
The pricing of fatty acids is influenced by several key factors, including raw material costs, production methods, supply chain dynamics, and market demand. Fluctuations in the prices of feedstocks such as palm oil and coconut oil can significantly impact fatty acid prices. Additionally, environmental regulations and shifts towards sustainable sourcing can lead to increased production costs. Understanding these factors is essential for procurement heads to make informed purchasing decisions.
To ensure the sustainability of your fatty acid supply, consider sourcing from certified suppliers who adhere to eco-friendly practices and standards. Look for suppliers that provide transparency in their sourcing and production processes and consider those who invest in sustainable agriculture. Collaborating with suppliers committed to sustainability can not only mitigate risks but also enhance your brand reputation in the market.
The price trend for fatty acids is expected to remain volatile due to ongoing factors such as raw material price fluctuations, geopolitical tensions, and increasing consumer demand for sustainable products. While short-term price spikes may occur, the long-term outlook suggests a potential stabilization as more suppliers adopt sustainable practices and as production technologies improve. Staying informed about market developments and maintaining strong supplier relationships will help procurement heads navigate these trends effectively.
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