China
United States
India
United Arab Emirates
Japan
MalaysiaPalm Olein pricing in Q1 2025 extended its downtrend as prices declined by 13.4% high inventories in Malaysia and Indonesia combined with muted buying ahead of Ramadan. Despite this, the market showed relative stability within a narrow trading band, indicating weak but balanced conditions. The quarter reflected intense price competition with soft oils like soybean and sunflower oil, as abundant global vegetable oil supplies suppressed any meaningful recovery.
Buyer sentiment remained cautious, focusing on short-term needs rather than forward purchases. This period highlighted the broader structural weakness in demand despite manageable supply. RBD Palm Olein closed the quarter at USD 1,103 per metric ton FOB Kelang.
Palm Olein prices in Q2 2025 remained under pressure as weak demand and elevated stock levels weighed on the market. During the quarter Palm olein prices declined by 4.3%. The quarter saw prices bottom out in early June before a modest late-quarter recovery driven by seasonal restocking and renewed buying interest from key markets. Abundant soybean oil supplies and subdued import activity from India and China continued to cap upward momentum, while production discipline in Malaysia helped avoid steeper declines.
Mixed fundamentals left the market testing resistance levels toward the close of the quarter, balancing weak consumption against cautious supply management. According to PriceWatch, RBD Palm Olein ended the quarter at USD 1,024 per metric ton FOB Kelang.
Palm Olein began 2024 with moderate gains as prices increased by 5.1% despite traditionally slow post-holiday demand. Prices were supported by disciplined production in Malaysia and Indonesia, which helped offset weak biodiesel margins and ample vegetable oil stocks globally.
Early-year restocking by importing nations ahead of summer provided a temporary boost, though gains were tempered by ongoing competition from soybean and sunflower oils. The quarter laid the foundation for stronger pricing later in the year as sentiment shifted toward tightening supply. RBD Palm Olein closed Q1 2024 at USD 975 per metric ton FOB Kelang.
Palm Olein prices in Q2 2024 rebounded steadily, gaining by 9%, supported by improved export demand and production concerns across Southeast Asia. The market showed a clear transition from contango to backwardation, signalling tightening nearby supplies despite lingering uncertainty in global vegetable oil demand. Competitive pressure from soft oils capped the pace of gains, but sentiment remained cautiously optimistic as regional refiners and importers replenished inventories.
This quarter marked a turning point after the subdued spring market, restoring confidence in palm olein’s pricing resilience. RBD Palm Olein ended the quarter at USD 882 per metric ton FOB Kelang.
Palm Olein witnessed its strongest quarterly performance since 2022 in Q3 2024, with prices surging by 13.6% on production shortfalls in Malaysia and Indonesia. Robust demand from India ahead of festival seasons further fuelled the rally, pushing the market above key psychological thresholds. Tight stocks and firm crude palm oil futures amplified upward momentum, reinforcing palm olein’s pricing power relative to competing vegetable oils.
However, concerns emerged over demand sustainability as prices neared multi-year highs, highlighting the delicate balance between seasonal strength and affordability in key importing nations. RBD Palm Olein closed the quarter at USD 1,002 per metric ton FOB Kelang
Palm Olein prices in Q4 2024 experienced sharp volatility as prices rose sharply by more than 20%, initially supported by Malaysian production concerns and pre-winter stocking from major importers. However, the rally lost steam in December as anticipated demand failed to materialize and profit-taking dominated trading. Shifting inventory reports and evolving biodiesel policy expectations in importing markets further destabilized sentiment.
The quarter’s trajectory demonstrated how quickly sentiment can reverse when macro and seasonal factors diverge. What began as a bullish quarter ended on a weaker note, underscoring the market’s vulnerability to sentiment-driven corrections. RBD Palm Olein concluded the quarter at USD 1,181 per metric ton FOB Kelang.
Palm Olein prices in Q1 2025 saw a notable correction as India Palm olein prices reduced by 9.7% the tariff differential, making soft oils more competitive. Domestic oilseed output rose, swelling stocks and discouraging imports. Indian buyers adopted a cautious, wait-and-see approach, amplifying downward momentum.
Meanwhile, Malaysia’s coordinated production cuts aimed to stabilize prices, while Indonesia’s expanding biodiesel program redirected more palm oil away from food uses, tightening supply in certain segments. Volatility persisted, driven by complex trade flows and uncertain policy signals. RBD Palm Olein ended the quarter at USD 1,198 per metric ton CIF Nhava Sheva.
Palm Olein prices in Q2 2025 averaged lower as the prices declined by 12% on quarterly basis, particularly the monsoon-driven slowdown in India’s import demand, pressured the market. India’s swelling domestic oilseed stocks and competitive pricing from sunflower and soybean oils further dampened sentiment. However, late June brought mild support from Malaysian production constraints during Ramadan, alongside firmer crude palm oil (CPO) futures.
Despite some cautious optimism toward post-monsoon demand recovery, uncertainty lingered over India’s rising self-sufficiency in oilseeds and shifting import dynamics. According to PriceWatch, RBD Palm Olein closed the quarter at USD 1,051 per metric ton CIF Nhava Sheva.
Palm Olein began 2024 on a firmer note, with steady gains by 6.3% on quarterly basis despite modest demand. Southeast Asian production entered its seasonal low, while India’s pre-election economic activity provided a demand boost. The El Niño weather pattern’s delayed impact kept traders alert, as did evolving biodiesel policies in major producing countries.
Indian importers increasingly adopted hedging strategies and diversified sourcing, indicating a more sophisticated procurement approach. Market participants closely monitored weather and geopolitical developments ahead of the next production cycle. RBD Palm Olein closed the quarter at USD 902 per metric ton CIF Nhava Sheva.
Palm Olein prices in Q2 2024 moved steadily higher by 4.1% on quarterly basis, supported by improving crude oil prices that boosted biodiesel blending economics. Indonesia’s periodic export restrictions tightened availability, while India’s summer demand provided consistent import flows. However, the rally remained capped by India’s strategic buffer stock releases and large domestic oilseed inventories.
Russian sunflower oil’s growing competitiveness reshaped trade dynamics, while sustainability concerns started influencing procurement strategies, with rising inquiries for certified sustainable palm oil. RBD Palm Olein ended the quarter at USD 997 per metric ton CIF Nhava Sheva.
Palm Olein averaged higher by 8.3% in Q3 2024, supported by stronger crude palm oil futures, pre-Diwali stocking in India, and emerging production concerns in Malaysia. While early-quarter demand was soft, September brought renewed momentum as buyers replenished inventories. Competing pressures from India’s growing alternative oil stocks and competitive South American soybean oil offers limited the rally’s extent.
Energy market movements increasingly influenced biodiesel-linked palm demand, adding another layer of price sensitivity. Traders ended the quarter cautiously optimistic but wary of potential demand destruction if prices rose further. RBD Palm Olein closed the quarter at USD 1,078 per metric ton CIF Nhava Sheva.
Palm Olein prices in Q4 2024 surged by more than 20% on quarterly basis in the last quarter as supply constraints collided with robust seasonal demand. Malaysian stocks hit multi-month lows, Indonesia advanced its B35 biodiesel mandate, and production dipped seasonally. Indian festival buying further strained availability, driving intense competition among refiners.
Volatility was pronounced, with prices swinging sharply on changing export policies and currency fluctuations. Toward December, the market stabilized as post-festival demand eased and delayed shipments offered some supply relief. RBD Palm Olein finished the quarter at USD 1,327 per metric ton CIF Nhava Sheva.
Molecular Weight[g/mol]
CAS No
HS Code
Molecular Formula
Palm Olein (Refined, Bleached, and Deodorized Palm Olein) is the liquid fraction obtained from the fractionation of refined palm oil. Derived from the mesocarp of the oil palm fruit, RBD Palm Olein undergoes refining processes to remove impurities, colour, and odour, resulting in a clear, light yellow oil with excellent oxidative stability. It remains fluid at ambient temperatures in tropical climates, making it ideal for household and industrial frying applications.
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 (Palm Kernel Oil) |
| Physical state | Liquid (at warm temperatures); semi-solid at room temp |
| 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
RBD Palm Olein is widely used in edible oil blends, cooking oil, instant noodles, snacks, and processed foods. It is also utilized in non-food sectors such as biodiesel, soap manufacturing, and personal care products due to its favorable fatty acid composition and frying properties. Its high smoke point, extended shelf life, and neutral flavor make it especially valuable in the global food supply chain.
Climate and Regulatory Impact – (2024)
Heavy rains in Malaysia and drought conditions in Indonesia reduced fresh fruit bunch yields, affecting crude palm oil availability and refining throughput. Sustainability certification demands and stricter EU traceability regulations limited export volumes to Europe, tightening global supplies and contributing to further price increases.
Feedstock & Logistic Disruptions – (2023)
Extreme weather events in Southeast Asia, port congestion, and fluctuating crude palm oil (CPO) prices strained supply chains. Freight costs surged due to limited vessel availability. Meanwhile, high global inflation and tightening inventories in major importing nations like India and Bangladesh kept Palm Olein prices elevated.
Russia-Ukraine War – (2022)
The war disrupted sunflower oil exports, prompting many countries to substitute with palm-based oils. Palm Olein saw heightened demand, especially in Europe and the Middle East. Concurrent increases in energy, fertilizer, and transport costs further inflated production and distribution expenses, fuelling upward price pressure.
Post-COVID Demand Recovery – (2021)
As economies reopened, demand for Palm Olein surged, especially in foodservice, instant noodle manufacturing, and snack processing. Increased exports to India, China, and Africa tightened global supplies. Labor shortages in Malaysia and Indonesia hindered output recovery, pushing prices higher amid strong restocking by importers.
The COVID-19 Pandemic – (2020)
Global lockdowns and labour shortages disrupted oil palm harvesting and refining activities, including Palm Olein production. Restrictions on transportation and port operations led to delayed shipments. While retail cooking oil demand remained stable in some regions, bulk industrial usage dropped temporarily, causing price volatility due to uneven consumption patterns.
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Molecular Weight[g/mol]
CAS No
HS Code
Molecular Formula
Palm Olein (Refined, Bleached, and Deodorized Palm Olein) is the liquid fraction obtained from the fractionation of refined palm oil. Derived from the mesocarp of the oil palm fruit, RBD Palm Olein undergoes refining processes to remove impurities, colour, and odour, resulting in a clear, light yellow oil with excellent oxidative stability. It remains fluid at ambient temperatures in tropical climates, making it ideal for household and industrial frying applications.
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 (Palm Kernel Oil) |
| Physical state | Liquid (at warm temperatures); semi-solid at room temp |
| 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
RBD Palm Olein is widely used in edible oil blends, cooking oil, instant noodles, snacks, and processed foods. It is also utilized in non-food sectors such as biodiesel, soap manufacturing, and personal care products due to its favorable fatty acid composition and frying properties. Its high smoke point, extended shelf life, and neutral flavor make it especially valuable in the global food supply chain.
Palm Olein pricing is primarily influenced by the underlying crude palm oil (CPO) market, as it is refined directly from CPO. Key factors include palm fruit harvest yields, plantation productivity, and weather patterns in major producing regions like Malaysia and Indonesia. Demand from downstream industries—such as food manufacturing, bakery fats, instant noodles, oleochemicals, and soaps—also plays a crucial role. Global vegetable oil market trends, including soybean and sunflower oil prices, affect Palm Olein’s competitiveness. Additionally, logistics costs, currency fluctuations, export policies, and biodiesel mandates influence price movements. Monitoring these supply-demand dynamics and trade policies is essential for anticipating pricing trends.
Negotiating favourable Palm Olein pricing requires a strategic, informed approach. First, leverage market knowledge by staying updated on CPO trends, seasonal harvest forecasts, and downstream demand patterns, which strengthens your negotiation position. Exploring long-term contracts helps secure stable pricing, lock in volume-based discounts, and reduce exposure to short-term volatility. Considering alternative sources—such as soybean, sunflower, or kernel oils—can improve bargaining power when negotiating. Building long-term supplier relationships based on transparency and reliability ensures priority allocation during tight supply periods and opens doors for more flexible terms. Optimizing freight, delivery schedules, and incoterms further reduces total procurement costs.
Palm Olein procurement faces risks such as price volatility, supply disruptions, and quality inconsistencies. Prices fluctuate due to crude palm oil market shifts, global vegetable oil trends, weather impacts, and biodiesel policy changes. Supply disruptions can arise from seasonal harvest variations, extreme weather events, port congestion, or geopolitical issues affecting key exporting countries. Quality concerns, including free fatty acid (FFA) levels and storage-related deterioration, can disrupt downstream production. Mitigation strategies include using futures or forward contracts to manage price exposure, diversifying suppliers and sourcing regions to reduce dependency risks, and implementing strict quality control measures such as third-party inspections and regular lab testing to ensure consistency.
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