Palm Kernel Stearin prices in Q2 2025 showed heightened volatility, declining by 3.2% quarter-on-quarter. The quarter opened strongly, building on Q1 momentum to reach USD 2,273 per metric ton by mid-May – the highest level since 2023 – supported by tight palm kernel oil feedstock supplies and robust demand from specialty chemical manufacturers. However, the rally reversed sharply in June as European buyers retreated from the market amid economic uncertainty and increased competition from coconut oil derivatives.
Prices plunged in mid-June before finding support from production cuts in Malaysia and Indonesia. The late-quarter recovery reflected re-stocking activity ahead of the festival season, though sentiment remained fragile. According to PriceWatch, RBD Palm Kernel Stearin closed the quarter at USD 1,968 per metric ton FOB Port Kelang, with market participants closely watching kernel oil production trends and biodiesel blending policies that could impact feedstock availability.
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