China
United States
India
United Arab Emirates
Japan
MalaysiaPalm Kernel Oil prices rose 4.1% in Q1 2025, extending their upward trajectory for the second consecutive quarter. The market experienced a mid-quarter rally fuelled by dry weather concerns in Southeast Asia, which raised fears of supply tightness, pushing prices temporarily to higher levels. While profit-taking tempered gains toward the quarter’s end, underlying fundamentals remained supportive, with Indonesian kernel crushing plants facing persistent constraints.
Specialty fats manufacturers sustained steady buying, highlighting PKO’s resilience and premium over competing lauric oils. The period underscored the market’s continued sensitivity to palm oil feedstock trends and climatic disruptions in major producing regions. RBD Palm Kernel oil prices ended the quarter with an average of USD 1,857 per metric ton FOB Port Kelang.
Palm Kernel Oil prices declined 2.4% in Q2 2025 as the market corrected from Q1 highs amid fluctuating demand and improving supply. The quarter saw heightened volatility, with mid-June marking the lowest point since Q3 2024 as abundant coconut oil substitutes and reduced buying from European oleochemical producers weighed on sentiment.
However, a late-quarter rebound emerged, driven by renewed procurement from Indian and Chinese buyers alongside production discipline from Malaysian processors seeking to manage weaker PKO–copra spreads. Seasonal shifts and summer maintenance schedules in Europe also shaped trade flows, keeping the market in a tight yet balanced state. According to PriceWatch, RBD Palm Kernel oil prices were assessed at an average of USD 1,817 per metric ton FOB Port Kelang in Q2 2025.
Palm Kernel Oil rose 6.8% in Q1 2024, supported by post-monsoon restocking and recovering demand from Indian soap manufacturers. Prices maintained a steady upward trajectory through February, reflecting tightening supplies from Indonesia’s kernel crushing plants. The market also witnessed an early divergence from broader palm oil trends, with PKO sustaining stronger price support due to its niche applications in premium consumer products.
Profit-taking in late March capped gains, yet sentiment remained firm as participants anticipated further supply constraints in the coming months. This quarter set the tone for a more volatile year ahead. RBD Palm Kernel Oil prices closed Q1 with an average of USD 854 per metric ton FOB Port Kelang.
Palm Kernel Oil prices fell 7.3% in Q2 2024, reflecting a correction from Q1 peaks amid improved kernel crushing activity and subdued demand. The market traded within a narrow range for most of the quarter, as balanced fundamentals kept sharp movements in check. Competitive coconut oil imports further limited upside potential, while cautious buying from China’s personal care sector added to the muted tone.
Despite this, late-quarter signs of tightening emerged as Malaysian production entered its seasonal low period, hinting at a possible reversal ahead. The quarter demonstrated the interplay of regional production trends and demand elasticity. RBD Palm Kernel oil ended the quarter with an average of USD 1,129 per metric ton FOB Port Kelang.
RBD Palm Kernel Oil prices jumped 23.1% in Q3 2024, signalling a strong recovery from mid-year lows. The rally was driven by tight kernel supplies from Indonesia and production challenges at Malaysian crushing plants, which created localized supply bottlenecks. Prices gained further momentum as European chocolate manufacturers secured volumes ahead of the winter season, reinforcing demand.
By late September, however, buyer resistance surfaced at elevated price levels, slowing the pace of increases. This quarter highlighted how downstream demand cycles can amplify market tightness, particularly when supply disruptions coincide with seasonal procurement spikes. RBD Palm Kernel Oil prices closed Q3 with an average of USD 1,361 per metric ton FOB Port Kelang.
Palm Kernel Oil surged 33.2% in Q4 2024, marking one of the sharpest quarterly gains in recent years. The market was driven by panic buying in October after Indonesia announced kernel export restrictions, triggering an unprecedented rally within weeks. Prices reached near-record levels in November before stabilizing as buyers adjusted to higher cost structures. Demand from the cosmetics and specialty food sectors remained firm, but kernel crushing rates lagged behind consumption needs, exposing supply-side vulnerabilities.
The quarter also reflected the impact of policy decisions on short-term market dynamics and the limited flexibility of global supply chains. According to PriceWatch, RBD Palm Kernel Oil prices concluded Q4 with an average of USD 1,904 per metric ton FOB Port Kelang.
RBD Palm Kernel Oil surged 13.2% QoQ as strong restocking ahead of India’s summer season coincided with tight Malaysian supplies. Pre-festival buying and fears of shipment delays pushed prices to a quarterly peak, prompting Indian refiners to secure cargoes early. However, demand cooled toward late March as domestic stocks reached comfortable levels, causing a minor correction.
Malaysian export taxes and weaker-than-expected production sustained supply tightness, ensuring prices remained elevated despite reduced buying momentum. This period highlighted India’s role as a key driver of lauric oil markets when seasonal demand aligns with constrained supply. RBD Palm Kernel oil prices concluded Q1 2025 with an average price of USD 2,065 per metric ton CIF Nhava Sheva, peaking at USD 2,082 per metric ton.
Palm Kernel Oil prices in India fell 6.4% QoQ as subdued domestic demand and high Malaysian stock levels pressured the market. Uncertainty around the monsoon and ample soybean oil inventories kept Indian refiners cautious, leading to muted imports despite competitive Malaysian pricing. Labor shortages and dry weather in Malaysia curbed production, offering some support, yet Indian buyers anticipated further corrections and avoided aggressive restocking.
Import volumes were 15% lower than Q1 levels, reflecting restrained procurement. This quarter underscored the market’s sensitivity to domestic consumption trends and global supply fluctuations. According to PriceWatch, Palm Kernel oil prices ended Q2 2025 with prices averaging USD 1,974 per metric ton CIF Nhava Sheva.
RBD Palm Kernel Oil prices gained 8.7% QoQ, defying weak seasonal trends as India’s restocking appetite and Malaysia’s slow production recovery tightened supply. Indian buyers rebuilt inventories after a low-stock 2023, driving early-quarter firmness. Malaysia’s export tax policies further constrained availability, keeping prices supported despite muted Chinese demand.
This quarter marked the beginning of a sustained uptrend, setting the tone for stronger market fundamentals ahead. By the end of the quarter, Indian refiners emerged as key price influencers amid limited global buying interest. Q1 concluded with RBD Palm Kernel oil prices averaging USD 915 per metric ton CIF Nhava Sheva, closing at USD 1,034 per metric ton.
RBD Palm Kernel Oil prices rebounded 22.1% QoQ as India’s pre-monsoon buying coincided with Malaysia’s export recovery. Indian importers took advantage of lower Malaysian offers before seasonal duty-free import windows closed, leading to a strong offtake surge. While Malaysian palm oil stocks remained high, rising crude palm oil costs constrained refinery margins, preventing deeper discounts.
Demand from India’s industrial non-edible sectors added support, offsetting weaker trends in other Asian markets. The quarter highlighted India’s role as a stabilizing demand center during periods of Malaysian oversupply. RBD Palm Kernel oil concluded Q2 2025 with prices averaging USD 1,219 per metric ton CIF Nhava Sheva.
Palm Kernel Oil prices rose 18.3% QoQ amid post-monsoon restocking in India and export restrictions from Malaysia. Anticipating tighter Q4 supplies, Indian refiners accelerated imports despite higher costs, securing early contracts to hedge against further volatility. Malaysia’s ongoing production challenges, particularly labour shortages, limited shipments and created localized supply squeezes.
The resulting price rally lifted Indian inventories to four-month highs by quarter-end, reducing immediate demand pressure for the following quarter. This period demonstrated how proactive buying strategies can shield Indian refiners from escalating costs in a tightening market. RBD Palm Kernel oil concluded Q3 with an average of USD 1,413 per metric ton CIF Nhava Sheva.
RBD Palm Kernel Oil prices jumped 28.5% QoQ, driven by India’s festive demand colliding with Malaysia’s severe supply constraints. Heavy rains and labour shortages reduced Malaysian yields, while Indonesian exports slowed, making Malaysia the primary supplier for Indian refiners. Aggressive pre-Diwali buying pushed prices sharply higher through October and November.
However, demand destruction emerged in December as elevated costs discouraged further imports, triggering a modest late-quarter dip. The quarter revealed how seasonal spikes in Indian consumption can amplify global supply tightness, especially when alternative sources are limited. RBD Palm Kernel oil closed Q4 with average prices of USD 2,054 per metric ton CIF Nhava Sheva.
Molecular Weight[g/mol]
CAS No
HS Code
Molecular Formula
Palm Kernel Oil is a vegetable oil derived from the kernel (seed) of the oil palm fruit. After mechanical extraction, the crude palm kernel oil undergoes refining processes—removal of impurities, bleaching, and deodorization—to produce a clean, odorless, and light-colored oil suitable for a wide range of industrial and consumer applications. It is extensively used in the production of soaps, detergents, oleochemicals (like fatty acids and glycerine), personal care products, and food formulations. Palm Kernel Oil has excellent oxidative stability, high lauric acid content, and desirable melting properties, making it valuable for both domestic processing and export markets.
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 | Value (RBD Palm Kernel Oil) |
| Physical state | Liquid (at warm temperatures); semi-solid at room temperature |
| Colour | Light yellow to white |
| Odour | Neutral to slightly nutty |
| Melting point/freezing point | 24–28 °C |
| Boiling point or initial boiling point and range | >300 °C (decomposes before boiling) |
| Flammability | Non-flammable under normal handling conditions |
| Lower and upper explosion limit | Not applicable |
| Flash point | >250 °C (open cup) |
| Auto-ignition temperature | ~350 °C |
| pH (value) | Not applicable (non-aqueous) |
| Kinematic viscosity | 33–42 mm²/s at 40 °C |
| Dynamic viscosity | 32–38 mPa·s at 40 °C |
| Water solubility | Insoluble in water |
| Partition coefficient n-octanol/water (log value) | ~6.5–7.0 |
| Vapour pressure | Negligible at 20 °C |
| Density | 0.89–0.91 g/cm³ at 20 °C |
Applications
Palm Kernel Oil is widely used in the manufacture of soaps, detergents, and personal care products due to its high lauric acid content and excellent foaming properties. It serves as a key ingredient in oleochemical production (fatty acids, esters, and glycerine) and is also used in the food industry for producing margarine, confectionery fats, and non-dairy creamers. Additionally, it finds applications in industrial lubricants, cosmetics, and pharmaceutical formulations, valued for its stability, mild odour, and semi-solid consistency at room temperature.
Climate and Farming Impact – (2024)
Unseasonal rainfall in Malaysia and drought concerns in parts of Indonesia impacted kernel yields and oil extraction rates. The resulting lower output coincided with strong international demand, pushing prices upward. Additionally, sustainability certifications and traceability requirements affected export volumes to the EU, contributing to further price fluctuations.
Feedstock & Logistic Disruptions – (2023)
Prices were influenced by weather-related disruptions in Southeast Asia, port congestion, reduced vessel availability, and fluctuating crude palm kernel oil (CPKO) prices. High inflation and lower inventory levels in major importing countries also added pressure, while regulatory changes in exporting countries led to temporary supply shortages.
Russia-Ukraine War – (2022)
The war led to a sharp rise in global edible oil prices, particularly sunflower oil. As a substitute, demand for Palm Kernel Oil increased significantly, especially in Europe and South Asia. The geopolitical crisis also drove up fertilizer and energy prices, increasing production costs and fueling further price hikes in the palm oil sector.
Post-COVID Demand Recovery – (2021)
As economic activity resumed, demand for Palm Kernel Oil surged, particularly in food processing, soap manufacturing, and cosmetics. With increased consumer demand and export orders from China and India, prices rebounded sharply. Tight labor availability in Malaysia and Indonesia also slowed production recovery, contributing to rising prices.
The COVID-19 Pandemic – (2020)
Global lockdowns and labour shortages severely disrupted palm oil plantation operations and refining activities, including Palm Kernel Oil. The supply chain was further impacted by port closures and restricted transportation. As demand from the food and personal care sectors dropped temporarily, many processors operated at reduced capacities, causing a temporary oversupply and price volatility.
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Molecular Weight[g/mol]
CAS No
HS Code
Molecular Formula
Palm Kernel Oil is a vegetable oil derived from the kernel (seed) of the oil palm fruit. After mechanical extraction, the crude palm kernel oil undergoes refining processes—removal of impurities, bleaching, and deodorization—to produce a clean, odorless, and light-colored oil suitable for a wide range of industrial and consumer applications. It is extensively used in the production of soaps, detergents, oleochemicals (like fatty acids and glycerine), personal care products, and food formulations. Palm Kernel Oil has excellent oxidative stability, high lauric acid content, and desirable melting properties, making it valuable for both domestic processing and export markets.
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 | Value (RBD Palm Kernel Oil) |
| Physical state | Liquid (at warm temperatures); semi-solid at room temperature |
| Colour | Light yellow to white |
| Odour | Neutral to slightly nutty |
| Melting point/freezing point | 24–28 °C |
| Boiling point or initial boiling point and range | >300 °C (decomposes before boiling) |
| Flammability | Non-flammable under normal handling conditions |
| Lower and upper explosion limit | Not applicable |
| Flash point | >250 °C (open cup) |
| Auto-ignition temperature | ~350 °C |
| pH (value) | Not applicable (non-aqueous) |
| Kinematic viscosity | 33–42 mm²/s at 40 °C |
| Dynamic viscosity | 32–38 mPa·s at 40 °C |
| Water solubility | Insoluble in water |
| Partition coefficient n-octanol/water (log value) | ~6.5–7.0 |
| Vapour pressure | Negligible at 20 °C |
| Density | 0.89–0.91 g/cm³ at 20 °C |
Applications
Palm Kernel Oil is widely used in the manufacture of soaps, detergents, and personal care products due to its high lauric acid content and excellent foaming properties. It serves as a key ingredient in oleochemical production (fatty acids, esters, and glycerine) and is also used in the food industry for producing margarine, confectionery fats, and non-dairy creamers. Additionally, it finds applications in industrial lubricants, cosmetics, and pharmaceutical formulations, valued for its stability, mild odour, and semi-solid consistency at room temperature.
Palm Kernel Oil pricing is influenced by multiple interrelated factors. Chief among them are crude palm oil price trends, which directly affect derivative product values. Demand from industries such as oleochemicals, food processing, and cosmetics also drives price movements. On the supply side, harvest yields, weather conditions, and processing capacities significantly affect availability. Additionally, global trade policies, export tariffs, and currency fluctuations contribute to price volatility. Monitoring these elements provides insight into market dynamics and aids in forecasting. Engaging with analysts and staying updated on industry reports enhances procurement strategy and price risk management.
To negotiate favourable pricing for Palm Kernel Oil, procurement professionals should leverage comprehensive market knowledge and data-driven insights. Establishing long-term contracts can secure volume discounts and price stability. Considering alternative oils or suppliers enhances bargaining leverage. Building strong supplier relationships based on trust, transparency, and mutual benefit fosters more collaborative negotiations. Bulk purchases, flexible delivery schedules, and prompt payments can also yield better terms. Additionally, aligning procurement timelines with seasonal lows in market prices contributes to cost efficiency. Strategic negotiation, grounded in research and relationship management, ensures more favourable procurement outcomes over time.
Palm Kernel Oil procurement involves various risks including price volatility, supply disruptions, and inconsistent product quality. Prices may fluctuate due to crude palm oil market dynamics, geopolitical factors, or changing global demand. Supply risks arise from weather-related issues, transportation delays, or regional instability. Quality variations can affect end-product performance. To mitigate these, buyers should hedge using futures or forward contracts, diversify sourcing across multiple suppliers or geographies, and enforce strict quality control measures. Regular audits, third-party certifications, and laboratory testing ensure product integrity. A proactive, multi-layered risk management strategy ensures procurement resilience and business continuity.
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