Q1 2024
In the first quarter of 2024, oleic acid prices had averaged around USD 1,310 per metric ton. This increase had been primarily driven by production disruptions in key sourcing regions, exacerbated by extreme weather events and logistical hurdles. These challenges had led to a decline of approximately 800,000 metric tons in overall production, tightening supply. At the same time, strong demand from the food and personal care sectors, particularly for natural and organic products, had further pushed prices upward. The combination of limited supply and robust demand had created a complex environment for procurement strategies.
Q2 2024
During the first half of Q2 2024, the oleic acid market had faced challenges due to lingering weather-related issues and ongoing supply chain disruptions. Demand from the food industry had remained strong, with a reported 4% increase in consumption, especially for products emphasizing health benefits. By May 2024, there had been signs of recovery in production rates, which had begun to stabilize prices somewhat. However, overall supply had remained delicate, prompting caution among stakeholders regarding future price fluctuations.
Q3 2024
As of August 2024, oleic acid prices have been witnessing notable fluctuations, currently averaging around USD 1,452 per metric ton. This increase has reflected tight supply conditions alongside steady demand, particularly from the cosmetics and food sectors. Contributing factors have included persistent global supply chain disruptions, especially in transportation and raw material availability. The demand for oleic acid has continued to be robust, driven by its use in personal care formulations and food products, further impacting the upward pricing trend.
Q4 2024
Looking ahead to Q4 2024 and beyond, a partial recovery in oleic acid production is expected as weather conditions improve and labor challenges are resolved. However, market volatility will continue through 2030. Key factors influencing stability will include climate change impacts on agricultural output, shifts in trade policies affecting sourcing, and changing consumer preferences for sustainable ingredients. Companies will need to navigate these complexities to adapt their strategies and maintain a competitive edge in the oleic acid market.