Palm Distillate Price Trend and Forecast

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Historical Data Since 2015
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Forecast for 2026
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palm distillate Price Trends by Country

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Global palm distillate Spot Market Prices, Trend Analysis and Forecast

Price-Watch’s most active coverage of Palm Distillate price assessment:

  • Palm Fatty Acid Distillate (PFAD) FOB Port Kelang, Malaysia
  • Palm Kernel Fatty Acid Distillate (PKFAD) FOB Port Kelang, Malaysia
  • Palm Fatty Acid Distillate (PFAD) CIF Rotterdam (Malaysia), Netherlands
  • Palm Kernel Fatty Acid Distillate (PKFAD) CIF Rotterdam (Malaysia), Netherlands
  • Palm Fatty Acid Distillate (PFAD) CIF Shanghai (Malaysia), China
  • Palm Kernel Fatty Acid Distillate (PKFAD) CIF Shanghai (Malaysia), China
  • Palm Fatty Acid Distillate (PFAD) CIF Nhava Sheva (Malaysia), India
  • Palm Kernel Fatty Acid Distillate (PKFAD) CIF Nhava Sheva (Malaysia), India
  • Palm Fatty Acid Distillate (PFAD) FOB Jakarta, Indonesia
  • Palm Kernel Fatty Acid Distillate (PFAD) FOB Jakarta, Indonesia
  • Palm Fatty Acid Distillate (PFAD) CIF Shanghai (Indonesia), China
  • Palm Kernel Fatty Acid Distillate (PKFAD) CIF Shanghai (Indonesia), China
  • Palm Fatty Acid Distillate (PFAD) CIF Nhava Sheva (Indonesia), India
  • Palm Kernel Fatty Acid Distillate (PKFAD) CIF Nhava Sheva (Indonesia), India
  • Palm Fatty Acid Distillate (PFAD) CIF Rotterdam (Malaysia), Netherlands
  • Palm Kernel Fatty Acid Distillate (PKFAD) CIF Rotterdam (Indonesia), Netherlands
  • Palm Fatty Acid Distillate (PFAD) CIF Busan (Indonesia), South Korea
  • Palm Kernel Fatty Acid Distillate (PFAD) CIF Busan (Indonesia), South Korea
  • Palm Fatty Acid Distillate (PFAD) Ex-Ahmedabad, India

Palm Distillate Price Trend Q3 2025

In Q3 2025, The PFAD market saw moderate price fluctuations within a general range of about 3-6%. Palm Distillate price trends rebounded in several key export destinations like Europe, Southeast Asia, China, and India, driven by restored Biodiesel production from increased oleochemical demand. Malaysian and Indonesian producers optimized their supply strategies to balance sustainability requirements with production targets amid ongoing global commitments toward renewable energy. However, markets like South Korea faced declines in Palm Distillate prices due to softened demand and high freight charges, thus showing regional variability.

Across the board, freight costs increased, influenced by vessel shortages and fuel prices, thus placing upward pressures on offered costs and affecting competitiveness. Market participants remained watchful about the fluctuations in currency, geopolitical risks, and uncertainties associated with trade policy, ongoing factors that influence stability in the market and price directions. Overall, the quarter underlined PFAD’s key role as a renewable feedstock facing promising demand due to evolving environmental policy and supply chain challenges.

Malaysia

Palm Distillate (Palm Fatty Acid Distillate) Export prices from Malaysia.

In Q3 2025, Palm Distillate (PFAD) price trend in Malaysia rebounded by 3.79%, ranging between USD 884-1,040 per metric ton. A sharp increase of 8.67% in September was due to the resurgence of biodiesel production after maintenance shutdowns and growth in demand for oleochemicals. Export markets in Europe and Southeast Asia revived following policy reinforcements towards renewable energy sources. Malaysian producers made optimum supply strategies, balancing sustainability requirements and production targets.

With sustainability standards and biofuel mandates across the globe remaining central to energy policies, market confidence increased. Participants nonetheless remained watchful regarding currency fluctuations, geopolitical instability, and ongoing negotiations on trade that might impact future flows. This quarter underlined the emerging importance of Palm Distillate (PFAD) as a feedstock for renewables, with promising demand trajectories across emerging global environmental commitments.

Indonesia

Palm Distillate (Palm Fatty Acid Distillate) Import prices of Indonesia from Malaysia.

In Q3 2025, Palm Distillate (PFAD) price trend in Indonesia further dropped by 6.10%, ranging between USD 854 to 958 per metric ton, offset by a 6.78% monthly price rebound in September to signal a tentative market bounce back. Price performance in Indonesia reflected cautious optimism, with Biodiesel plants resuming operations and increased oleochemical consumption on seasonal adjustment.

Freight and logistics costs went up moderately to add to the cost pressures offered but were matched with increased interest from buyers. Producers focused on sustainability certifications and efficiency in supply chains to retain export competitiveness. The current quarter reflects market resilience amid ongoing cost and demand volatility, underscoring a complex landscape for Indonesia’s Palm Distillate (PFAD) price trend and trade dynamics.

Netherlands

Palm Distillate (Palm Fatty Acid Distillate) Import prices of Netherlands from Malaysia.

IN Q3 2025, Palm Distillate (PFAD) price trends in the Netherlands reversed with a price increase of 4.65%, with PFAD ranging between USD 1,035 and 1,130 per metric ton and recording a significant 4.93% monthly rise. Freight charges sharply increased again due to seasonal demand spikes and renewed fuel price volatility impacting shipping costs. This rebound was driven by renewed demand from Biodiesel producers and oleochemical industries, as European environmental policies were reinforced to promote renewable feedstock usage.

Malaysian exporters improved supply chain practices to match the exacting standards while buyers also moved forward with procurement in the face of rising freight costs. Resilience and optimism thus mark this quarter in the market for Netherlands Palm Distillate (PFAD), reflecting an encouraging trend in price despite the ongoing challenges of high logistics costs and policy-driven demand fluctuations.

China

Palm Distillate (Palm Fatty Acid Distillate) Import prices of China from Malaysia.

In Q3 2025, the Palm Distillate (PFAD) price trends in China witnessed a gradual recovery, with prices rising by 3.87% to a range between USD 901 and 1,059 per metric ton. September saw a notable 8.61% surge in prices, signaling renewed market confidence. This quarter saw a slight increase in freight charges, impacted by seasonal demand spikes and renewed volatility in fuel markets, leading to moderate cost rises.

This recovery was fueled by rebounding demand from Biodiesel producers and oleochemical manufacturers responding to reinforced environmental regulations and supportive policies in China. Improvements in logistics and supply chain reliability further supported price gains.

Buyers resumed inventory replenishment to position themselves for expected continued demand growth. The Palm Distillate (PFAD) price trend in China during this quarter indicated a market adapting effectively to changing dynamics, with cautious optimism for sustained recovery and stability ahead.

South Korea

Palm Distillate (Palm Fatty Acid Distillate) Import prices of Indonesia South Korea Malaysia.

In Q3 2025, Palm Distillate (PFAD) price trends in South Korea declined further by 5.86%, pricing between USD 879 and 983 per metric ton. Despite the quarterly decline, September observed an encouraging 6.45% increase, suggesting a tentative recovery. Freight charges rose slightly again as seasonal trading activity increased and fuel market volatility influenced higher shipping expenses. Renewed activity in Biodiesel refineries and oleochemical sectors helped to stabilize demand.

However, supply side resilience amid ongoing logistical and cost challenges continued to weigh on pricing. Market participants cautiously replenished inventories anticipating policy support and seasonal demand upswings. The Palm Distillate (PFAD) price trend in South Korea during this quarter was characterized by volatility and gradual adaptation to an evolving market and regulatory terrain, pointing toward cautiously optimistic prospects.

India

Palm Distillate (Palm Fatty Acid Distillate) Import prices of India from Malaysia.

According to Price-Watch, In Q3 2025, the Palm Distillate (PFAD) price trend in India was up, gaining 3.11%, in the range of USD 972-1,055 per metric ton. In September, it saw a good 2.20% increase, reflecting the slow but sure recovery of demand in the sector. This was occasioned by revitalized policies supporting renewable energy and an increase in oleochemical industry activity on account of stable raw material supplies and improved logistics.

With this, market participants were actively restocking inventories, preparing continued policy support and industrial consumption. As this quarter of the year showed in India, Palm Distillate (PFAD) price trend reflected an improved market outlook, with increasing confidence in long-term demand driven by government mandates, increased environmental awareness, and improving technology in biofuel production.

Palm Distillate Price Trend Analysis: Q2 2025

In Q2 2025, the PFAD market came under notable downward pressure, with a decline generally ranging between 3% and 11%. This was driven by weaker biodiesel demand caused by relaxations in renewable fuel mandates and oversupply, particularly due to increased Palm Oil production in Indonesia. The oleochemical sector was restrained in purchases as economic slowdowns and inflationary challenges mounted, and exporters/processors found their supply cuts inadequate to sufficiently offset global oversupply.

Freight costs have generally eased in some regions, briefly easing the logistical burden, but global macroeconomic uncertainty, trade tensions, and currency fluctuations helped to keep buying interest cautious. Against this backdrop, a sustained regulatory focus on sustainability and renewable energy continues to drive fundamentals, with participants closely monitoring policy changes that will impact future supply-demand balances and price stability. Overall, the quarter reflected a challenging corrective phase for PFAD against complex economic and geopolitical influences.

Malaysia

Palm Distillate (Palm Fatty Acid Distillate) Export prices from Malaysia.

In Q2 2025, PFAD prices in Malaysia declined drastically by 10.71%, trading within a range of USD 851 to 1,040 per metric ton. By June alone, there was a 2.48% monthly decrease due to weaker biodiesel demand, amid relaxations in renewable fuel mandates and oversupplied markets, particularly because of increased Indonesian production. This further depressed the prices because oleochemical industries, influenced by economic slowdowns and inflationary pressures, delayed purchases.

Supply cuts by Malaysian producers were inadequate to balance the prevailing oversupply situation in the world. Market participants remained bearish, with reduced buying activity due to increasingly competitive pressures from other raw material options. Stakeholders watched the regulatory and trade policies closely, which had a great impact on the supply-demand dynamics. This quarter really marked a challenging phase; it revealed how external economic and geopolitical changes can make PFAD prices really vulnerable.

Indonesia

Palm Distillate (Palm Fatty Acid Distillate) Import prices of Indonesia from Malaysia.

In Q2 2025, PFAD prices in Indonesia fell 3.50%, within the range of USD 909 to 1,065 per metric ton, held up by a 4.60% drop in June. The price trend this quarter in Indonesia reflected oversupply pressures and weakening Biodiesel demand amid economic uncertainties. Oleochemical procurement slowed as market participants delicately balanced inventory with cautious outlooks in view of macroeconomic challenges and shifting policy frameworks.

This quarter underlined how Indonesia’s PFAD pricing has been sensitive to external economic and regulatory forces, marking a corrective phase in the domestic market while also highlighting the impact of global commodity fluctuations and trade policy adjustments on local prices. Industry players remained cautious, adapting to volatile demand conditions and strategic supply management to navigate the uncertain market environment.

Netherlands

Palm Distillate (Palm Fatty Acid Distillate) Import prices of Netherlands from Malaysia.

In Q2 2025, PFAD price in Netherlands was down sharply by 10.77%, ranging between USD 953 to 1,150 per metric ton, including a 1.11% decline in the last month of June. This downside resulted from continued oversupply out of Malaysia and Indonesia, a sharp decrease in freight charges driven by decreased shipping demand and optimized port operations, together with lower biodiesel mandates and soft oleochemical demand due to broader economic headwinds. Buyers maintained caution as they attempted to operate within a volatile environment and focused on cost containment and inventory rationalization. Freight conditions provided minor cost relief but were not enough to outweigh bearish market pressures. This quarter underlined a sharp downward correction in the PFAD market price trend shaped by changes in global supply and evolving regulatory frameworks.

China

Palm Distillate (Palm Fatty Acid Distillate) Import prices of China from Malaysia.

In Q2 2025, PFAD price in China was quite steep, with the price corrected by 10.64% over the quarter, ranging from USD 867 to 1,055 per metric ton. In June, the price continued to decline, down by 2.53%. Freight charges remained stable with balanced supply and demand dynamics maintaining consistent pricing without significant fluctuations. The primary driver behind this correction has been oversupply concerns due to the strong Biodiesel production from Malaysia and Indonesia, while demand from China’s oleochemical sector softens in view of economic uncertainties and cautious buying. Although the logistic and shipping conditions remain stable, global economic headwinds and policy uncertainties depressed prices. The buyers turned to conservative purchase strategies that epitomized the cautious market sentiment that defined the price trend in China during this corrective phase.

South Korea

Palm Distillate (Palm Fatty Acid Distillate) Import prices of Indonesia South Korea Malaysia.

In Q2 2025, PFAD price in South Korea eased by 3.58%, while the price range was between USD 932 to 1,090 per metric ton, 4.49% down from last month. freight charges slightly decreased reflecting more balanced freight capacity and steady fuel prices, helping moderate overall shipping costs. Market weakness was due to weakening Biodiesel demand, supply overhang, and cautious consumption in the oleochemical sector because of macroeconomic and trade uncertainties.

The supply chains were operational but under cost pressure. Buyers were moderately buying while focusing on inventory management. This quarter marked a cautious correction in the price trend, induced by external demand shocks and shifting regulatory signals, highlighting the sensitive interplay of supply and demand shaping the PFAD market in South Korea.

India

Palm Distillate (Palm Fatty Acid Distillate) Import prices of India from Malaysia.

In Q2 2025, the PFAD prices in India saw a notable correction, with prices moving down 11.79%, ranging from USD 937 to 1,090 per metric ton. During the last month, the market reflected a drop of 0.86%, which marked an accentuation of the correction phase driven by oversupply apprehension and subdued demand from the Biodiesel and oleochemical sectors due to macroeconomic uncertainties. Buyers turned cautious, prioritizing inventory reduction and cost management in response to the persistent global volatility.

Although the logistic performance was steady, the general sentiment was marked by increased caution, as buyers expected further corrections upwards. The price trend reflected that this quarter the Indian market is getting increasingly vulnerable to external disruptions in demand and the influence of macroeconomic factors, therefore marking a period of recalibration for the industry participants.

In Q1 2025, The PFAD market recorded stable growth in this quarter, with price increases generally ranging from 3-9%. Such growth was underpinned by normalized supply flows and sustained demand from renewable fuel and chemical sectors amidst energy transition efforts globally. Producers have focused on improving the sustainability of certifications and refining capacities to meet increasing regulatory standards. Export markets benefited from increasing renewable energy commitments, especially in key importing countries across Asia and Europe.

Freight costs posted minor declines, facilitating trade flows and easing logistic pressures. Despite such an upbeat scenario, buyers remained cautious due to the global economic uncertainty factor and geopolitical risks influencing supply chain reliability. Overall, the PFAD market in this quarter reflected a maturing renewable feedstock sector that has been increasingly driven by changes in energy-environment policy and evolving industrial demand.

Malaysia

Palm Distillate (Palm Fatty Acid Distillate) Export prices from Malaysia.

In Q1 2025, PFAD prices in Malaysia continued to increase by 7.07%, fluctuating within a range of USD 969 to 1,070 per metric ton. Prices in March moderately went up by 0.77% due to the stabilization of supply flows and continued demand improvement from renewable fuel and chemical industries amidst global energy transition trends. Manufacturers focused on value addition through better sustainability certification and increased refining capacity to meet higher regulatory standards for renewable and low-carbon products.

Exporters enjoyed positive sentiment due to increasing renewable energy policies in major importing countries. However, buyers were somewhat cautious, wary of the prospects of global economic uncertainties and geopolitical risks that may impact supply chain reliability. This quarter reflects a positive pricing environment combined with cautious market positioning, hence indicating a maturing feedstock market for renewables influenced by energy and environmental policy changes.

Indonesia

Palm Distillate (Palm Fatty Acid Distillate) Import prices of Indonesia from Malaysia.

In Q1 2025, PFAD prices in Indonesia recorded a 7.76% increase in price, ranging from USD 955 to 1,050 per metric ton, despite a 1.95% dip in March. The Indonesia price trend pointed towards market resilience in respect of biodiesel blending and growing oleochemical activities as government policies continued to favor renewable fuels for sustainability. Production efficiencies and consistency had a balanced effect on demand, while freight and logistics improved marginally, aiding both cost control and timely delivery.

Buyers corrected inventory strategies in an effort toward striking a balance between supply risks and steady market demand. The quarter hinted at a promising price outlook in Indonesia’s PFAD sector, as industry players prepare for continued regulatory support and market expansion.

Netherlands

Palm Distillate (Palm Fatty Acid Distillate) Import prices of Netherlands from Malaysia.

In Q1 2025, PFAD price in Netherlands decreased by 3.35%, fluctuating within the range of USD 1,120 to 1,190 per metric ton. Freight charges continued to decline sharply, benefitting from stabilized fuel prices and better capacity management among carriers. March saw a further decline of 2.78%, pointing to the weakening demand in both the oleochemical and Biodiesel sectors amidst oversupply by Southeast Asian producers.

Participants have moved with caution, carefully managing inventories, and changing procurement strategies under regulatory uncertainties and dynamic global economic conditions. This quarter was corrective for the prices of PFAD in the Netherlands and underlined their sensitivity towards both alterations in supply and demand and underlying logistic cost elements, hence signaling a phase of challenges in the transitional policy and trade landscapes.

China

Palm Distillate (Palm Fatty Acid Distillate) Import prices of China from Malaysia.

In Q1 2025, Palm Fatty Acid Distillate (PFAD) prices in China continued to move upward, increasing by 6.70% within the quarter and fluctuating between USD 986 and 1,085 per metric ton. Freight charges slightly decreased as market sentiment steadied and capacity improved, allowing some relief for exporters and importers. Remarkably, the last month of this quarter saw a slight decrease of 0.71%.

This quarter saw steady demand from Biodiesel producers and the oleochemical industry, impelled by China’s energy transition and increased regulatory encouragement for renewable fuels. Supply chains benefited from post-holiday stabilization that improved product availability and efficiency in the way products were distributed.

With the volatility of the world commodity markets and changes in international policies, market participants remained cautiously optimistic. The overall price trend of the product in China during this quarter reflected resilience, balancing robust consumption with minor short-term fluctuations against a dynamic international landscape.

South Korea

Palm Distillate (Palm Fatty Acid Distillate) Import prices of Indonesia South Korea Malaysia.

In Q1 2025, PFAD price in South Korea increased by 7.61% and fluctuated within the range of USD 980-1,075 per metric ton. There was a slight increase in freight charges due to seasonal fluctuations in demand accompanied by volatile fuel prices impacting shipping rates. A decline of 2.10% has been seen in March, showing some cooling off in the short-term market.

This quarter stood firm due to the growth of industries manufacturing renewable fuels and oleochemicals, while the environmental mandates also continued. Supply chain logistics returned to normal post-holiday seasons and therefore ensured smoother product flows.

Despite minor retracement in March, overall quarterly performance showed resistance as manufacturers balanced their procurement and production strategies. The price trend during the period harnessed cautious optimism through global commodity volatility and a shifting policy landscape which influences South Korea’s PFAD market.

India

Palm Distillate (Palm Fatty Acid Distillate) Import prices of India from Malaysia.

In Q1 2025, PFAD prices from Ahmedabad saw a significant surge of 9.78%, whereas the prices fluctuated in the range of USD 1,063 to 1,162 per metric ton. During March, the price was relatively down by 0.50%, which reflected minor easing after sustained demand driven by policies supporting renewable energy and oleochemical industries. This was supported by continuous government initiatives of promoting biofuel blending, environmental sustainability, and local oilseed production.

Supply chains remained strong, and players in the industry were actively operating on inventory balancing to meet the growing industrial demand. The price trend of PFAD in India during the quarter exhibited that the country had moved into a resilient and upward-trending market, backed by expanding industrial applications and favorable regulatory environments, positioning PFAD as a vital feedstock in sustainable manufacturing.

Palm Distillate Price Trend Analysis: Q4 2024

In Q4 2024, The market for PFADs also recorded strong price increases, mainly ranging from 6% to 15%, due to increased global Biodiesel production stemming from stricter carbon emission regulations and mandated renewable fuel content, partly in Europe and Southeast Asia. Supply was restrained due to several maintenance shutdowns and seasonal harvest cycles, which led to a limitation in PFAD availability and, therefore, higher prices.

Buyers are increasing purchases in anticipation of future demand supported by improving oleochemical processing, which increased efficiency in the use of PFADs. Freight rates generally declined and eased logistics, supporting inventory replenishment ahead of regulatory deadlines later this year. As geopolitical and economic uncertainties continue, the quarter highlighted good market confidence, with PFAD holding its strategic position as a crucial renewable feedstock underpinning the growth momentum into 2025.

Malaysia

Palm Distillate (Palm Fatty Acid Distillate) Export prices from Malaysia.

In Q4 2024, PFAD prices in Malaysia increased by 15.59%, while the range between USD 881 and 1,020 per metric ton. This was due to strong global biodiesel production, which continues to increase because of heightened carbon emission limits and renewable content mandates in fuels, especially in Europe and Southeast Asia. Upstream constraints like seasonal harvest cycles lowering Palm Oil extraction rates began to hit the availability of PFAD supply.

Buyers have been gearing up their inventories in anticipation of higher future demand driven by supportive energy policies. December saw a price increase of 2.97% month-on-month, further signaling upward momentum. Further, new oleochemical processes enhanced PFAD’s utilization efficiency and supported the market at a higher level than before. Amidst continuous market uncertainties, this quarter reflected robust investor and buyer confidence in PFAD as a strategic feedstock towards sustainable industries.

Indonesia

Palm Distillate (Palm Fatty Acid Distillate) Import prices of Indonesia from Malaysia.

In Q4 2024, PFAD prices in Indonesia continued to grow strongly, surging 10.43% and fluctuating between USD 875 to 989 per metric ton, up 6.56% in December. During the quarter, the price trend in Indonesia was influenced by the increasing demand for Biodiesel production and oleochemical manufacturing, largely seasonal and policy driven. Logistics have improved efficiency and reduced supply chain costs, while also opening up smoother access to the marketplace.

Market participants started stocking up in preparation for the expected increased environmental regulations early in the coming new year. Although geopolitical risks were present, the strong internal demand and improved distribution channels contributed to confidence and support for an ongoing upward trend in Indonesia’s PFAD industry in the light of 2025.

Netherlands

Palm Distillate (Palm Fatty Acid Distillate) Import prices of Netherlands from Malaysia.

In Q4 2024, PFAD prices in Netherlands increased 5.86% and hovered in the range of USD 1,120-1,245 per metric ton, as prices increased by 1.76% in December. This quarter marked a sharp decrease in freight charges, aided by improved logistics efficiency and a moderation in fuel prices, which helped lower overall transportation costs. The cost of logistics was sharply lower, reducing volatility in offered costs and improving buying.

Renewable fuel blending mandates continued to build momentum in European markets, along with growth in the oleochemical sector. Malaysian refiners proactively increased production and improved their logistics to satisfy demand spikes. Market players also pre-stocked inventories ahead of new policy deadlines. While wider geopolitical uncertainty persists, these factors of demand growth and easing logistics costs combined to support a stable and strong price trend in the Netherlands PFAD market at year-end.

China

Palm Distillate (Palm Fatty Acid Distillate) Import prices of China from Malaysia.

In Q4 2024, PFAD price in China surged upwards, increasing by 14.31%, ranging between USD 902 to 1,040 per metric ton. This Quarter continued the trend of sharp decreases in freight charges as fuel prices moderated and supply chain disruptions were alleviated, contributing to lower overall shipping costs. In the last month alone, the prices witnessed a gain of 2.74%, the upward movement showing continuity. This was influenced by increased Biodiesel blending requirements and strong demand for the oleochemical industry during year-end ramp-up.

Therefore, seasonal changes in Palm Oil production and revisions to Malaysian exports have tightened supply, thus serving as a strong support to price increases. In this quarter, such industrial and policy-driven movement in the price trend of China will help boost the market into a positive trajectory moving into 2025 despite persistent global trade and geopolitical uncertainties.

South Korea

Palm Distillate (Palm Fatty Acid Distillate) Import prices of Indonesia South Korea Malaysia.

In Q4 2024, PFAD prices in South Korea grew with momentum in a 10.11% gain, as prices ranged between USD 899 and 1,010 per metric ton, up 6.39% from last month. Freight charges slightly decreased due to fuel price moderation and improved port operations. During this period, it became evident that sustained growth was led by strong Biodiesel blending activity amidst firm oleochemical consumption, thereby entering the year-end production cycle.

Supply-side management improved with better logistical coordination to offer support for consistent availability. Market confidence remained high despite the prevailing uncertainties in the world, with regulatory frameworks providing directional clarity. Power buyers acted to replenish inventories, with expectations of ongoing demand for cleaner energy driven by tighter economic policies. The price trend in South Korea brought in a strong finish in 2024, setting a positive foundation towards 2025.

India

Palm Distillate (Palm Fatty Acid Distillate) Import prices of India from Malaysia.

In Q4 2024, The India PFAD price trend recorded an increase of 6.15%, ranging from USD 942 to 1,088 per metric ton. In the last month, the gain was 4.43%, underlining a good close to the year. This demand was underpinned by increased Biodiesel blending targets and strong oleochemical use, while supply remained balanced through strategic production management. This quarter reflected an industry adapting to increasing regulatory expectations and growing environmental awareness in India. Participants proactively managed stocks in anticipation of continued policy-driven growth. It was evidence of confident price trends. Performance in this quarter indicated sustainable expansion driven by government support and rising consumer preference for renewable feedstocks.

In Q3 2024, The PFAD market posted moderate price gains in the range of about 3-11%, on the back of steady supply amidst external challenges and strong demand from growing Biodiesel production and manufacturing of oleochemicals in major Asia-Pacific markets, especially Indonesia and Malaysia. Supply routes were partly affected from time to time due to seasonal factors and geopolitical development, although major producers-maintained output consistently.

Freight costs varied insignificantly in both directions, but some stabilization contributed to smoother trade operations. Market participants continued to be cautiously optimistic as growth prospects from environmental policy and renewable energy mandates are weighed against uncertainties related to evolving trade tariffs and regulatory compliance. What this quarter witnessed was more of a consolidation with steady demand momentum and improved efficiency along the value chain encouraging moderate price increases.

Malaysia

Palm Distillate (Palm Fatty Acid Distillate) Export prices from Malaysia.

In Q3 2024, PFAD prices in Malaysia moderately increased by 3.06%, ranging between USD 812 to 842 per metric ton. September saw a meager movement of 0.60% due to an overall steady supply despite challenges in the external environment. Demand from the Asia-Pacific market, particularly Malaysia, remains good on account of increasing Biodiesel production and oleochemical manufacturing. Weather events and geopolitical changes sometimes affect supply routes; however, major players continued manufacturing at stable levels. Favorable regulatory environments to biofuels supported the consumption rate. According to analysts, though growth was subdued, PFAD’s role in sustainable industrial applications and evolving environmental policy ensured the continuation of demand, but market players were still wary about evolving trade tariffs and environmental compliance that were affecting production costs and export volumes.

Indonesia

Palm Distillate (Palm Fatty Acid Distillate) Import prices of Indonesia from Malaysia.

In Q3 2024, PFAD prices in Indonesia jumped 10.47%, ranging from USD 776 to 949 per metric ton, including a remarkable monthly increase of 9.12% in September. The price movement in Indonesia has witnessed strong upward momentum on the back of increased domestic Biodiesel blending requirements and rising demand from the oleochemical industry.

Seasonal declines in Palm Oil production reduced supplies and tightened PFAD supply. Simultaneously, motivated buyers to speed up procurement and inventory accumulation ahead of impending regulatory stringency. The quarter showed a bullish outlook with an emphasis on the strategic position of PFAD in Indonesia’s renewable fuel sector, supported by favorable government policies and optimism in the market.

Netherlands

Palm Distillate (Palm Fatty Acid Distillate) Import prices of Netherlands from Malaysia.

In Q3 2024, PFAD price in the Netherlands recorded a moderate increase of 3.28%, while PFAD oscillated between USD 1,065 and 1,180 per metric ton. A slight increase in freight charges depicted easing shipping constraints, although costs were generally high because of pressures that remained in the market. In September, there was a slight decline of 2.34%. The improvement in market dynamics was seen with stabilization in shipping schedules and tempering volatility on fuel prices.

Biodiesel and oleochemical industries showed consistent demand, filled by favorable regulatory environments for renewable feedstocks across Europe. Malaysian producers adjusted the allocations to ensure maximum volumes could be exported as logistics started to ease. Buyers strategically managed inventories, leveraging improved logistics that helped mitigate earlier cost pressures. The price trend in the Netherlands mirrored consolidation after huge fluctuations – balancing steady supplies against moderated cost burdens.

China

Palm Distillate (Palm Fatty Acid Distillate) Import prices of China from Malaysia.

In Q3 2024, PFAD prices in China increased at a moderate 3.93%, with prices oscillating between USD 836 and 866 per metric ton. Freight charges dramatically declined due to improved shipping schedules and the easing of fuel surcharges, which resulted in cheaper freight options. In September, the market registered a marginal increase of 0.23%, indicating a significant decline in the acceleration of price increases.

The demand for Biodiesel and oleochemicals remained stable as supply normalized from previously strained levels. Eased logistics eased cost pressures while buyers conservatively watched for possible market corrections. This quarter, the price trend in China stabilized, reflecting a period of consolidation through which the industry reconciled supply and demand given a shift in the global Palm Oil landscape and regulatory changes, setting up the stage for the final quarter rally.

South Korea

Palm Distillate (Palm Fatty Acid Distillate) Import prices of Indonesia South Korea Malaysia.

In Q3 2024, PFAD prices in South Korea showed a strong price trend up 11.24% and prices fluctuating within the range of USD 801 to 973 per metric ton. Freight charges strongly rebounded again on the back of seasonal demand spiking and port congestion, which restricted the available slots and made it costlier for importers. September recorded a strong rise of 8.87%. This steep rise was a result of increased Biodiesel production mandates on one hand and rising demand for oleochemicals on the back of an expanding industrial output.

Supply became tighter due to seasonal fluctuations in Palm Oil production and better logistics, which moved towards efficient distribution. In a bid to meet the strong consumption, buyers accelerated procurement under supportive government policies to promote renewable energy and sustainability. The quarter therefore emerged as a bullish phase of the price trend, reflecting resilience amid regional market dynamics and reinforcement through regulation.

India

Palm Distillate (Palm Fatty Acid Distillate) Import prices of India from Malaysia.

In Q3 2024, In India, PFAD prices continued to firm up by 5.57% in the review period, ranging between USD 945 and 1,002 per metric ton. The pace in the last month moderated to 3.10% compared to the previous month. Steady demand from biofuel producers scaling up production in tandem with capacity-expansion initiatives by oleochemicals manufacturers drove the price upward in India.

The supply volatility was in check due to seasonal variations and increased logistical efficiency improved trade flows in local markets. Growth was further assisted by favorable government policies through mandates and subsidies to increase the uptake of renewable products. The market was upbeat but cautious to ensure that supply and demand could balance out with regulatory clarity and an improved industrial outlook, thus setting the tone for the next quarter.

In Q2 2024, The mixed but generally positive movement in a price range of about 1-16% characterized the PFAD market. Market performance was driven by increasing Biodiesel mandates and renewable fuel policies in both Europe and Asia, especially in supporting demand from the oleochemical and animal feed sectors. Malaysia managed its Palm Oil production to keep supplies tight, supporting prices.

Minor supply chain disruptions and seasonality occasionally intervened to soften these gains. Freight charges generally increased and added to offered costs, especially in key regions like the Netherlands, with the ongoing challenges of logistics and a rise in fuel prices contributing to higher overall costs.

Sustained demand and the regulatory environment brought confidence to the market, although buyers were still cautious considering geopolitical uncertainties and evolving trade policies. This quarter has seen PFAD’s growing prominence as an essential feedstock for renewable energy and sustainable industrial applications supported by strengthening policy frameworks and an increase in biofuel production.

Malaysia

Palm Distillate (Palm Fatty Acid Distillate) Export prices from Malaysia.

In Q2 2024, PFAD prices in Malaysia increased sharply by 8.90%, reaching between USD 789 and 828 per metric ton. For June alone, prices increased by 3.19% due to surging global Biodiesel mandates, especially in Europe and Asia, which drives up demand for sustainable feedstocks like PFAD. Producers in Malaysia tightened supplies by managing output strategically, thus supporting price increases. The strengthening was also aided by demand from the oleochemical and animal feed industries.

However, rhythm was tempered at times by supply chain disruptions and production variability on a seasonal basis. Market confidence improved on favorable regulatory environments which encouraged the use of renewable fuels, but buyers remained cautious due to risks in geopolitics related to trade and fluctuating global markets. The quarter reflected improved market fundamentals with PFAD taking a more prominent role in green energy transitions.

Indonesia

Palm Distillate (Palm Fatty Acid Distillate) Import prices of Indonesia from Malaysia.

In Q2 2024, PFAD prices in Indonesia edged down 0.74%, trading between USD 747 and 784 per metric ton, with a drop of 1.18% during the June. This phase marked the relative stabilization of the price trend in Indonesia due to more balanced supply-demand equilibrium post-monsoon. Demand from Biodiesel producers and oleochemical sectors held strong, as refining output for Palm Oil continued unabated. Improvements in logistics-maintained fluidity along the supply chain, reducing some cost pressures. Buyers, normally cautious, optimized their inventories and procurement amidst continuing policy changes and macroeconomic events. This quarter underpinned Indonesia’s PFAD market as it entered its consolidation phase, marked by measured price shifts and operational adjustments.

Netherlands

Palm Distillate (Palm Fatty Acid Distillate) Import prices of Netherlands from Malaysia.

In Q2 2024, In the Netherlands, prices of PKFAD continued to surge upwards by 16.29%, ranging between USD 978 and 1,190 per metric ton. This quarter saw a steep rise in freight charges due to increased demand for shipping and supply chain congestion, which kept freight rates high. In the last month, it saw an increase of 8.27%. The market was driven by strong enforcement of European biodiesel mandates and increased oleochemical production that fueled sustained PKFAD consumption.

Supply was tight due to production limitations and export priorities from Malaysia. Bottlenecks in shipping and increasing fuel price notably contributed to inflation in logistics costs, which buyers absorbed amid securing supplies in competitive markets. This quarter marked a highly volatile but bullish phase for the PKFAD price trend in the Netherlands.

China

Palm Distillate (Palm Fatty Acid Distillate) Import prices of China from Malaysia.

In Q2 2024, PFAD prices in China accelerated sharply with a 9% increase, where prices moved between USD 803 and 852 per metric ton. This quarter experienced a slight increase in freight charges as market demand stabilized but logistical challenges persisted, maintaining upward pressure on shipping expenses. June added a 3.86% rise, sustaining positive momentum. Demand from Biodiesel producers expanded due to enhanced regulatory incentives and oleochemical manufacturing scaled up in response to improving economic conditions.

Supply continued to be influenced by Malaysian export volumes and periodic logistics constraints. The price trend in China reflected strong industry confidence, with buyers actively managing inventories to mitigate risks amid dynamic policy environments encouraging renewable feedstock use. This phase was pivotal in enhancing market liquidity and price stability.

South Korea

Palm Distillate (Palm Fatty Acid Distillate) Import prices of Indonesia South Korea Malaysia.

In Q2 2024, PFAD prices in South Korea for softened slightly by 0.51%, with prices trading within the range of USD 759 to 796 per metric ton and a minor 0.57% decline in the June. Freight charges slightly increased as some shipping bottlenecks eased but overall demand remained stable. The market showed signs of stabilization, with oleochemical demand remaining steady and Biodiesel blending requirements holding firm.

Supply conditions improved with exports from Southeast Asian producers maintaining consistent flow, while logistics bottlenecks eased. This moderate price trend reflected a balance of steady demand and supply-side adjustments within a regulatory environment that increasingly favored sustainable sourcing. Buyers were still working to manage inventories prudently, awaiting clearer signals from evolving trade policies and domestic market developments.

India

Palm Distillate (Palm Fatty Acid Distillate) Import prices of India from Malaysia.

In Q2 2024 In India, the PFAD prices rebounded strongly by 9.84%, from USD 897 to 942 per metric ton. During June, there was a further increase of 3.57%, providing confirmation of excellent upward momentum. The market benefited from enhanced Biodiesel blending mandates and an expanding oleochemical sector, supported by favorable government incentives for renewable fuels. Supply is tight as refiners maximize their output to meet growing demand, particularly for domestic and export markets. Market players actively replenish inventories, reflecting growing confidence in sustained demand growth. The India price trend within the quarter highlighted the improving fundamentals driven by emerging energy policies and sustainability commitments.

In Q1 2024, the prices of PFAD moved within a narrow range of about 1-8% in the quarter, reflecting an overall balanced supply and demand in the market. Suppliers in Malaysia managed exports in line with changes in domestic policies. This maintained a stable supply for increasing external requirements, particularly from renewable energy and industrial users. During the quarter, the overall movement of prices was minimal; however, prices did surge significantly in March due to seasonal factors, while freight costs neared normal.

Indonesia experienced more sluggish demand and slightly lower prices as economic uncertainties mounted, and supplies remained adequate. Volatility in freight costs and related logistic problems affected regional prices but did little to alter market stability overall. Industry players watched with cautious optimism as the market addressed policy shifts, trade dynamics, and the value that PFAD brings to the table as a sustainable feedstock for Biodiesel, oleochemicals, and animal feed.

Malaysia

Palm Distillate (Palm Fatty Acid Distillate) Export prices from Malaysia.

In Q1 2024, Prices for Palm Fatty Acid Distillate (PFAD) in Malaysia were unchanged, up a mere 0.07%, between USD 708 and 793 per metric ton. Despite the minor quarterly move, March saw a sharp rise of 6.65% on seasonal adjustments, tightened inventory. Malaysian producers adjusted their exports against shifting domestic policies on Palm Oil production, matching supply with growing international interest. PFAD continued to play a key feedstock role in Biodiesel production, oleochemicals, and animal feed, reflecting both demand in renewable energy sectors and industrial applications. Market participants remained cautiously optimistic while macroeconomic uncertainties persisted but the relatively stable pricing during the quarter suggested that the market was balancing supply with evolving demand dynamics.

Indonesia

Palm Distillate (Palm Fatty Acid Distillate) Import prices of Indonesia from Malaysia.

In Q1 2024, PFAD prices in Indonesia recorded a drop of 5.89%, with trading ranging from USD 669 to 840 per metric ton. The price trend in Indonesia during the quarter mirrored the oversupply issues in the Palm Oil refining sector and cautious demand from the Biodiesel and oleochemical industries due to regulatory uncertainties. Logistical concerns, like the changeability of export policy, further worsened the downward pressure on prices. Consequently, market participants were prudent enough to maintain judicious inventory levels amidst the complex supply-demand dynamics. The meager drop in prices, combined with a 1.13% decline in March, illustrated how the market reacts to seasonal production and fluctuations in global trade, further emphasizing the turbulence that Indonesian PFAD producers and consumers faced early in 2024.

Netherlands

Palm Distillate (Palm Fatty Acid Distillate) Import prices of Netherlands from Malaysia.

In Q1 2024, PFAD prices in Netherlands surged strongly by 8.55%, ranging between USD 919 and 962 per metric ton. Freight charges went up abruptly because of surging fuel costs and restricted shipping capacity. The month of March saw a growth of 1.33% in price. Strong demand from European oleochemical industries and Biodiesel manufacturers accounted for the increase over this quarter, driven by increasingly stringent environmental controls favoring renewable feedstock materials. Supply was tight due to constraints in logistical and production capacity from Malaysian producers. Consumers took advantage of the market optimism to replenish their stocks in anticipation of further policy tightening. A congruence of regulatory support, supply constraint, and impact of logistics thus combined to set a bullish trend for PFAD prices in the Netherlands.

China

Palm Distillate (Palm Fatty Acid Distillate) Import prices of China from Malaysia.

In Q1 2024, In China, the prices of Palm Fatty Acid Distillate (PFAD) increased modestly at 1.39%, ranging from USD 724 to 808 per metric ton. Freight charges increased dramatically due to higher fuel prices and decreased logistics capacity, thus pushing up shipping costs across all major Chinese ports. During March, the price gain was much stronger at 6.08%, reflecting a significant hike that accelerated the upward movement quarter-over-quarter.

This trend in China was driven by demand for Palm-based products provided by oleochemicals and Biodiesel, against a backdrop of recovering industrial output. Supply chains accommodated seasonal fluctuations and improved logistics, contributing to positive momentum. Participants in the market were cautiously optimistic, as the good development balanced against external economic and trade uncertainties that might impact future quarters in the PFAD market.

South Korea

Palm Distillate (Palm Fatty Acid Distillate) Import prices of Indonesia South Korea Malaysia.

In Q1 2024, PFAD prices in South Korea declined 4.85%, ranging from USD 684 to 856 per metric ton. Freight charges sharply rose in the country due to increasing fuel prices and strong demand challenging logistics capacity. Prices further fell 1.29% in March. These price trends in South Korea reflected weakening demand from the oleochemical and Biodiesel industries amidst supply pressures from regional exports, especially those from Malaysia and Indonesia.

Market participants moved cautiously to adjust inventories in a balance of uncertainties in supply with ongoing changes in environmental regulations toward sustainability. Adding volatility to the supply chain were logistics disruptions and changes in trade policy. Still, the position of PFAD as a major renewable feedstock supported stability in pricing into the end of the quarter.

India

Palm Distillate (Palm Fatty Acid Distillate) Import prices of India from Malaysia.

In Q1 2024, PFAD prices in India were stable compared to previous qyarter and ranged between USD 797 and 882 per metric ton; however, in March, a good increase was recorded at 7.20%. Overall, this quarter reflected a market transition with subdued overall price movement but significant end-period strength, driven by steady demand from Biodiesel producers and the oleochemical industry.

Supply conditions were stable, with refiners adjusting production to match demand and government policies that encourage sustainable and renewable feedstock. The early quarter price trend in India indicated cautious optimism as stakeholders moved to balance supply constraints with gradual demand recovery across sustainable industrial sectors.

Technical Specifications of Palm Distillate Price Trends

Product Description

Palm Distillate is a physical refining by-product of Crude Palm Oil, which is in the form of brownish-yellow viscous liquid or brownish-yellow semi-solid with a fatty odor. It has high free fatty acid content consisting predominantly of Palmitic and Oleic Acids and residual triglycerides, water, and trace impurities. Because of its high acidity, low price, and easy availability, Palm Distillate is a precious raw material for use across many industries, e.g., Soap manufacturing, animal feed, oleochemicals like Stearic Acid and Glycerin, and as a feedstock in the Biodiesel production process.

Identifiers and Classification:

  • CAS No: 68440-15-2
  • HS Code: 38231900
  • Molecular Formula: Varies; primarily composed of free fatty acids such as palmitic (C₁₆H₃₂O₂), oleic (C₁₈H₃₄O₂), and linoleic acids
  • Molecular Weight [g/mol]:- ~256–282 g/mol (approx. for dominant free fatty acids)


Synonym:

  • Palm Acid Oil
  • Distilled Palm Fatty Acids
  • PFAD


Palm Distillate Grades Specific Price Assessment:

  • Palm Fatty Acid Distillate
  • Palm Kernel Fatty Acid Distillate


Palm Distillate Global Trade and Shipment Terms

  • Quotation Terms: 24-26 MT
  • Packaging Type: ISO Tank


Incoterms Referenced in Palm Distillate Price Reporting

Shipping Term  Location  Definition 
FOB Port Kelang  Port Kelang, Malaysia  Palm Distillate Export price from Malaysia 
FOB Jakarta  Jakarta, Indonesia  Palm Distillate Export price from Indonesia 
CIF Rotterdam (Malaysia)  Rotterdam, Netherlands  Palm Distillate Import price in Netherlands from Malaysia 
CIF Rotterdam (Indonesia)  Rotterdam, Netherlands  Palm Distillate Import price in Netherlands from Indonesia 
CIF Shanghai (Malaysia)  Shanghai, China  Palm Distillate Import price in China from Malaysia 
CIF Shanghai (Indonesia)  Shanghai, China  Palm Distillate Import price in China from Indonesia 
CIF Nhava Sheva(Malaysia)  Nhava Sheva, India  Palm Distillate Import price in India from Malaysia 
CIF Nhava Sheva(Indonesia)  Nhava Sheva, India  Palm Distillate Import price in India from Indonesia  
CIF Busan (Malaysia)  Busan, South Korea  Palm Distillate Import price in South Korea from Indonesia 
Ex-Ahmedabad  Ahmedabad, India  Domestically Traded Palm Distillate price in Ahmedabad 

*Quotation Terms refers to the quantity range specified for the Palm Distillate being quoted or offered in a commercial transaction.

**Packaging Type refers to standard packaging size commonly used for Palm Distillate packing, ease of handling, transportation, and storage in industrial and commercial applications.

Key Palm Distillate Manufacturers

Manufacturer 
Wilmer International 
Musim Mas 
Golden Agri-Resources 
IOI Corporation 
KLK (Kuala Lumpur Kepong) 
FGV Holdings. 

Palm Distillate Industrial Applications

palm distillate market share end use

Historically, several events have caused significant fluctuations in Palm Distillate prices

Climate and Farming Impact (2024) 
Erratic weather—including excessive rains and droughts—affected palm fruit development and oil extraction efficiency. The resulting lower crude palm oil output reduced PFAD byproduct volumes. Simultaneously, rising demand from industrial soap producers and oleochemical manufacturers intensified global competition. New environmental and traceability regulations, especially in Europe, caused export delays and further constrained PFAD availability, amplifying price pressures.

Feedstock & Logistic Disruptions (2023) 
Adverse weather events in key Southeast Asian producing regions lowered palm oil yields, reducing feedstock availability for PFAD. Concurrently, port congestion, vessel shortages, and elevated freight rates created logistical hurdles. Volatile crude palm oil prices also impacted refining margins, resulting in irregular PFAD supply and heightened market fluctuations.

Russia-Ukraine War (2022) 
The conflict disrupted global edible oil flows, especially sunflower oil, leading buyers to seek alternatives such as PFAD. Increased interest in PFAD for biofuel blending and soap production pushed global demand higher. Meanwhile, the war-induced surge in fertilizer and energy costs inflated production expenses throughout the palm oil value chain, contributing to elevated PFAD prices. 

Post-COVID Demand Recovery (2021) 
As economies reopened, demand for PFAD rebounded strongly, particularly in the soap, detergent, and animal feed sectors. Importing countries across Africa, South Asia, and the Middle East sought to replenish depleted inventories. However, lingering labour shortages in Malaysia and Indonesia hindered refinery throughput, creating tight supply conditions and driving PFAD prices upward. 

The COVID-19 Pandemic (2020) 
Global lockdowns and movement restrictions severely disrupted the palm oil industry, directly impacting PFAD production. Labor shortages, reduced refinery utilization, and logistical bottlenecks led to processing delays. With industrial demand from soap manufacturing, animal feed, and oleochemicals temporarily declining, surplus PFAD stocks accumulated. This resulted in significant price volatility and widespread market uncertainty. 

Why PriceWatch?

PriceWatch is your trusted resource for tracking global palm distillate price trends. Our platform delivers real-time data and expert analysis, offering deep insights into the key factors driving price fluctuations in the palm distillate 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 palm distillate prices worldwide. Stay ahead of the curve with PriceWatch’s reliable, accurate, and timely palm distillate market data.

Track PriceWatch's palm distillate 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.

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 PFAD production hubs. This ground-level intelligence is crucial for understanding localized market dynamics.
  • Supply Chain Monitoring: We track the entire PFAD supply chain, from raw material availability to production and distribution channels. This includes monitoring feedstock prices, production capacities, and transportation logistics.

Event Tracking and Impact Analysis​

  • Geopolitical Tensions: PriceWatch continuously monitors global geopolitical developments, such as conflicts or trade disputes, which can significantly impact PFAD prices. Our analysis includes potential disruptions to supply chains and their immediate and long-term effects on pricing.
  • Natural Disasters and Climate Events: We assess the impact of natural disasters, such as hurricanes or winter storms, on PFAD production facilities, particularly in vulnerable regions like the APAC coasts. These events are factored into our price forecasts and supply outlooks.
  • Economic Shifts: PriceWatch evaluates macroeconomic trends, including global economic growth, inflation rates, and sector-specific demand (e.g., soap manufacturing, animal feed, and oleochemical industries), to predict shifts in PFAD demand and corresponding price movements.

Production Capacity and Supply Analysis

  • Current Production Monitoring: We maintain a comprehensive database of global PFAD 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 PFAD 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 an in-depth analysis of demand trends across key sectors, including soap manufacturing, surfactants, animal feed formulations, and oleochemical derivatives. 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 PFAD 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 PFAD 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.

Palm Distillate Market Price Trend provided by PriceWatch 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 palm distillate. PriceWatch 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.

Palm Fatty Acid Distillate (PFAD) pricing is closely linked to crude palm oil (CPO) values, as it is a by-product of refining. Supply dynamics, including palm fruit harvest yields, refining throughput, and feedstock availability in Indonesia and Malaysia, heavily influence market trends. Demand from biodiesel producers, soap manufacturing, and animal feed sectors drives price stability or volatility. External factors such as monsoons, droughts, logistical bottlenecks, and currency fluctuations can create short-term swings. Moreover, renewable energy mandates, sustainability regulations, and shifts in trade policies, especially in the EU and major importing countries, significantly shape PFAD’s long-term pricing trajectory.

To negotiate favourable PFAD pricing, buyers should leverage real-time market intelligence on global supply-demand trends and biodiesel policy changes to strengthen their position. Entering long-term contracts during low-price cycles ensures stable costs and supply security. Diversifying sourcing across regions allows competitive comparisons while mitigating local disruptions. Building strong relationships with reliable suppliers enhances flexibility, priority access, and better terms during tight market conditions. Additionally, optimizing logistics through strategic shipping schedules and delivery modes helps reduce overall landed costs. A proactive approach, combining market knowledge with supplier collaboration, ensures more competitive and sustainable PFAD procurement agreements.

PFAD procurement faces risks like price volatility, driven by CPO values, global edible oil sentiment, and biodiesel policy changes. Mitigation involves hedging with futures or fixed contracts while closely monitoring price trends. Supply disruptions from weather anomalies, refinery shutdowns, or port congestion can cause delays, which can be reduced by diversifying suppliers geographically and maintaining safety stocks. Quality variability, including differences in FFA levels and impurities, risks downstream performance; thus, enforcing strict specifications, requesting Certificates of Analysis, and auditing suppliers is vital. Regulatory shifts and currency fluctuations affect landed costs, requiring trade monitoring and currency hedging. Proactive risk management ensures reliable and cost-effective PFAD sourcing.