fatty acid Pricing Assessment

Name: Fatty Acid Price Trend, Analysis and Forecast
Creator: PriceWatch
Published: 2025-02-11T12:28:35+00:00
License: https://www.price-watch.ai/privacy-policy/

Markets Covered:

Indonesia

Malaysia

Netherlands

India

Brazil

Fatty Acid Price Trend, Analysis and Forecast

In the first quarter of 2024, fatty acid prices in Indonesia had averaged around USD 950 per metric ton, experiencing a significant rise due to production disruptions in major producing regions, particularly Southeast Asia and North America. Production had been adversely affected by extreme weather conditions and logistical challenges. The price increase had been compounded by strong demand from various sectors, notably personal care and food industries. Meanwhile, the market faced a slight decline in demand from certain industrial applications, attributed to shifts towards alternative materials. Overall, the fatty acid market had been characterized by tight supply and rising prices during the initial months of the year.

In the first half of Q2 2024, the fatty acid market continued to confront ongoing production challenges stemming from adverse weather and logistical issues. Despite these constraints, demand from the food industry had remained stable, and prices had fluctuated within a narrow range. By May 2024, fatty acid prices had begun to stabilize as production volumes improved, easing some of the upward pressure on prices in key markets.

In the third quarter of 2024, the fatty acid market has seen prices rise to USD 1,000 per metric ton in Malaysia, driven by persistent supply constraints and slightly increased demand from the personal care and food sectors. The market has remained sensitive to global supply chain disruptions, including transportation delays and export limitations. This upward trend in prices has reflected the complex supply and demand dynamics affecting industry.

Looking ahead to the fourth quarter of 2024 and beyond, a partial recovery in fatty acid production will have been anticipated as supply chain issues are addressed and weather conditions stabilize. However, the market will have been expected to remain volatile through 2030. Ongoing impacts of climate change, shifts in trade policies, and evolving consumer preferences for sustainable alternatives will have continued to influence price fluctuations and overall market stability.

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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, keeps you fully informed of market dynamics.

In addition, provides detailed forecasts and updates on production capacities, enabling you to anticipate market changes and make well-informed decisions. With , you gain a competitive edge in understanding all the elements that influence fatty acid prices worldwide. Stay ahead of the curve with ’s reliable, accurate, and timely fatty acid market data.

Track '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.

Historically, several events have caused significant fluctuations in fatty acid prices

Supply Chain Disruptions (2020-2022)

During this period, the demand for fatty acids remained relatively stable, particularly in essential sectors like food and personal care. However, the supply chain disruptions led to significant volatility in prices. As production facilities faced lockdowns and labor shortages, output decreased while demand stayed steady, causing prices to spike. This situation highlighted the market’s sensitivity to supply chain issues.

Environmental Regulations and Sustainability Initiatives (2020-2023)

In response to increasing regulatory pressure and consumer preference for sustainability, demand for sustainably sourced fatty acids has increased. Manufacturers have adapted to these new standards, resulting in a gradual upward trend in prices. While demand remained stable, the push for eco-friendly practices led to higher production costs, which were passed on to consumers, causing a moderate increase in prices.

Raw Material Price Volatility (2021-Present)

The volatility in raw material prices, particularly for palm oil and coconut oil, has directly impacted the fatty acid market. As these raw materials experienced price increases due to weather-related disruptions and geopolitical tensions, the fatty acid prices followed suit. Demand for fatty acids has remained stable; however, rising prices have led some manufacturers to explore alternative sources or formulations, which could affect long-term demand dynamics.

Geopolitical Tensions and Trade Policies (2021-Present)

Geopolitical tensions and changes in trade policies have caused fluctuations in supply and prices. Export bans or tariffs from key producing countries have led to disruptions in supply chains, resulting in price increases. Despite these challenges, the demand for fatty acids in critical applications has remained steady. However, companies are increasingly cautious, which may lead to shifts in sourcing strategies and a potential decline in demand for certain types of fatty acids that are more impacted by trade dynamics.

Shifts Towards Bio-based and Sustainable Alternatives (2023-2024)

The market for bio-based and sustainably sourced fatty acids has seen a significant increase in demand, driven by growing consumer awareness of health and environmental issues. This shift has led manufacturers to invest in sustainable sourcing and production methods, resulting in a wider range of eco-friendly products. As consumers are willing to pay a premium for sustainability, pricing strategies have adapted, with many companies maintaining stable or slightly elevated prices. Overall, demand has remained stable to increase, reinforcing the importance of sustainability in the fatty acid industry.

Methodology and Specifications

fatty acid Pricing Assessment Research Methodology

Data Collection and Sources

Real-Time Market Data: PriceWatch aggregates real-time pricing data from a diverse range of sources, including global commodity exchanges, industry reports, and proprietary databases. This ensures that our assessments reflect the most current market conditions.

On-the-Ground Intelligence: Our team gathers insights directly from key market participants, including producers, suppliers, traders, and end-users, across major fatty acid production hubs. This ground-level intelligence is crucial for understanding localized market dynamics.

Supply Chain Monitoring: We track the entire fatty acid supply chain, from raw material availability (e.g., vegetable oils and animal fats) to production and distribution. This involves monitoring feedstock prices, production capacities, and transportation logistics to ensure efficient production and timely delivery, effectively meeting market demand.

Event Tracking and Impact Analysis

Natural Disasters: Disruptive events like hurricanes can lead to supply shortages and price spikes, creating uncertainty for both producers and consumers.

Raw Material Price Volatility: When feedstock prices (e.g., palm oil, soybean oil) rise, production costs for fatty acids increase, pushing prices higher. Conversely, falling raw material prices can provide relief.

Geopolitical Tensions: Conflicts in key producing regions can disrupt supply chains, leading to unpredictable price swings and challenges for businesses trying to maintain stability.

Regulatory Changes: New environmental regulations may increase costs and limit supply, causing prices to climb. Favorable trade policies can help stabilize the market, offering some predictability.

Market Demand Shifts: Growing consumer interest in sustainable and organic products can drive demand and prices up, while declines in sectors like textiles may lower prices.

Technological Advances: Innovations can reduce production costs, potentially lowering prices. However, if alternatives gain traction, traditional fatty acids may face downward pressure.

Global Economic Conditions: Economic growth boosts demand and prices, while recessions can dampen them. These shifts affect everyone in the supply chain, from producers to consumers.

Epidemic or Pandemic Events: Health crises like COVID-19 can disrupt supply chains and alter consumer behavior, leading to sharp price fluctuations and challenges for many businesses.

Production Capacity and Supply Analysis

Current Production Monitoring: We maintain a comprehensive database of global fatty acid production facilities, tracking their operational status, maintenance schedules, and output levels. This allows us to assess current supply availability accurately.

Future Capacity Projections: Our research includes detailed forecasts of upcoming fatty acid production capacities, factoring in new plant constructions, expansions, and technological advancements. This helps in predicting future supply trends and potential price stabilization.

Demand Forecasting

Sectoral Demand Analysis: PriceWatch provides in-depth analysis of demand trends across key sectors, including packaging, automotive, and construction. We track year-on-year demand growth and project future consumption patterns based on economic indicators and industry developments.

Global Demand Dynamics: Our methodology considers regional demand variations and how they influence global fatty acid pricing. This includes understanding the impact of shifts in manufacturing bases, trade policies, and environmental regulations.

Pricing Model Development

Dynamic Pricing Models: PriceWatch utilizes advanced econometric models to forecast fatty acid prices, incorporating real-time data, historical trends, and projected market conditions. Our models are continuously refined to enhance accuracy and predictive power.

Scenario Analysis: We conduct scenario-based assessments to evaluate potential future market conditions. This includes best-case, worst-case, and most likely scenarios, helping our clients prepare for a range of market outcomes.

Reporting and Client Support

Comprehensive Reports: Our clients receive detailed reports that include current price assessments, future price forecasts, and in-depth analysis of market drivers. These reports are designed to be actionable, providing clear insights and recommendations.

Ongoing Support: PriceWatch offers continuous updates and personalized support to our clients, ensuring they have the most up-to-date information to make informed decisions. Our experts are available to discuss specific market developments and provide tailored advice.

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.

Specifications

Molecular Weight[g/mol]

280-8

CAS No

Lauric Acid (143-07-7), Myristic Acid (544-63-8)

HS Code

3823(Variable)

Molecular Formula

CH3(CH2)nCOOH

fatty acid

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

Flexi Bags

Grades Covered

Lauric Acid, Myristic Acid

Incoterms Used

FOB Sumatra, FOB Klang, CIF Rotterdam, CIF Santos, CIF JNPT.

Synonym

Fatty Acid

Quotation Terms:

20-28 MT

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.

Properties	Specification
Appearance	White or faintly yellowish solid @25 ºC
Odour	Faint fatty odour
Melting point / freezing point	33 ºC
Initial boiling point and boiling range	>300 ºC @ 760mm Hg
Flash point	>200 ºC (Pensky-Martens closed cup)
Evaporation rate	Not applicable
Flammability (solid, gas)	Not flammable
Explosive limits	Not explosive
Vapour pressure	<1.0 mm Hg @ 131ºC
Solubility	none @ 20 ºC
Partition coefficient: n-octanol/water	4.2
Auto-ignition temperature	>250 ºC
Density @ 75 ºc	0.848-0.851 g/ml
Relative molecular mass	200.4-228.4

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.

Disclaimer

Fatty Acid price provided by is a base price and excludes VAT/Taxes, discounts, or offers. The information herein is accurate to the best of our knowledge as of the date indicated and is provided solely for the convenience of our customers as a reference for fatty acid. disclaims any warranties or representations regarding the accuracy of results derived from this information. It is the sole responsibility of the user to assess the suitability of the product for their specific application. This document does not constitute an endorsement to use the product in violation of any applicable patent rights.

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Frequently asked questions

What factors influence the pricing of fatty acids? +

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.

How can we ensure the sustainability of our fatty acid supply? +

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.

What is the expected price trend for fatty acids in the coming years? +

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.