Climate and Farming Impact – (2024)
Abnormal rainfall patterns and drought conditions in major producing countries impacted palm fruit quality and yield. This reduced the volume of stearin available after fractionation. Simultaneously, robust demand from food processors and soap manufacturers drove competition for limited supply. Stricter environmental and traceability regulations in Europe also delayed shipments, further affecting global price dynamics.
Feedstock & Logistic Disruptions – (2023)
Unfavourable weather patterns in key producing regions reduced palm oil yields, limiting the availability of feedstock for Palm Stearin. Logistics constraints—including port congestion, reduced vessel availability, and high shipping rates—further complicated supply chains. Combined with rising crude palm oil prices, these factors introduced significant volatility in Palm Stearin markets.
Russia-Ukraine War – (2022)
The war disrupted global edible oil markets, especially sunflower oil exports. As Palm Stearin became a viable alternative for food processing and frying applications, demand increased sharply. Higher fertilizer and energy costs also drove up upstream production costs, which were passed down the value chain, contributing to elevated Palm Stearin prices globally.
Post-COVID Demand Recovery – (2021)
As industrial activity resumed, demand for Palm Stearin surged—especially in the production of margarine, shortening, and soap. Countries in Africa, South Asia, and the Middle East increased imports to restock. However, operational slowdowns due to lingering labour constraints in Malaysia and Indonesia prevented a swift recovery in output, tightening supply and pushing prices upward.
The COVID-19 Pandemic – (2020)
Global lockdowns and movement restrictions severely disrupted the palm oil industry, affecting both crude palm oil processing and Palm Stearin production. Labor shortages and transportation barriers led to delays in refining operations. As demand from industrial sectors like food manufacturing, bakery fats, and soap production weakened temporarily, inventories built up, resulting in sharp price fluctuations and uncertainty in global markets.
