China
United States
India
United Arab Emirates
Japan
MalaysiaThe first quarter of 2025 saw RBD Palm Oil prices decline sharply, extending the downtrend from late 2024 peaks. Seasonal production rebounds in Southeast Asia coincided with weaker import demand during Ramadan, accelerating the market correction. Although there was brief technical support in late February, improved crop forecasts in Indonesia and Malaysia triggered further downside pressure.
The quarter highlighted growing sensitivity to competing vegetable oil prices and evolving biodiesel mandates, with the market losing much of its earlier risk premium from 2024’s tightness. By quarter-end, RBD Palm oil prices settled lower at USD 1,093 per metric ton FOB Kelang.
In Q2 2025, RBD Palm Oil extended its correction from Q1 highs, falling 7.6% quarter-on-quarter amid improving production outlooks in Malaysia and Indonesia. RBD Palm Oil market activity was volatile, with prices briefly softening in mid-June before short covering triggered a mild rebound. Subdued buying from major importers, particularly China and India, weighed on sentiment, though biodiesel demand provided a partial buffer against deeper losses.
Seasonal production recovery moderated supply concerns, helping the market establish a temporary floor. According to PriceWatch, by the end of the quarter, RBD Palm oil prices stabilized, signalling the downturn may have eased, closing at USD 980 per metric ton FOB Kelang.
The RBD Palm oil market began 2024 with a tentative recovery, posting a mild 1.8% quarter-on-quarter gain amid balanced fundamentals. Early-year production concerns in Malaysia provided some support, though sluggish Chinese demand limited upside potential. Trading remained rangebound as buyers awaited clearer signals on El Niño’s potential impact on yields. The quarter helped lay the foundation for tighter market conditions later in the year, demonstrating a gradual shift in sentiment. By March-end, prices settled at USD 842 per metric ton.
RBD Palm Oil prices in Q2 2024 saw a measured recovery, rising 5.7% as improved export demand met with underwhelming production growth. While a brief correction in May reflected profit-taking, renewed concerns over monsoon impacts in Southeast Asia reignited buying interest. Technical support levels were breached, reinforcing market confidence after months of subdued activity. Trading volumes remained modest as participants adopted a cautious approach, but the quarter marked an important stabilization phase following 2023’s volatility. RBD Palm oil prices concluded the quarter at USD 896 per metric ton.
In Q3 2024, RBD Palm Oil strengthened 11.2% quarter-on-quarter, supported by El Niño-induced supply concerns and persistent biodiesel demand in Indonesia. Inventory rebuilding in India ahead of the festive season further buoyed prices, while sluggish production growth in Malaysia kept physical availability tight. The market maintained consistent weekly gains, reflecting a shift toward a higher trading band. Long-term supply constraints began overshadowing short-term demand fluctuations, signalling a structural change in market dynamics. The quarter ended with RBD Palm oil prices averaging USD 994 per metric ton FOB Kelang.
Q4 2024 delivered a strong rebound in RBD Palm Oil, driven by production shortfalls in Malaysia and aggressive pre-winter stocking from major importers. The rally, however, exhibited exceptional volatility, as year-end profit-taking prompted a sudden correction after reaching multi-month highs. Demand rationing also emerged as buyers reacted to elevated price levels. Despite a late-December dip, overall fundamentals remained tight, underscoring supply risks in the global vegetable oil market. The quarter ultimately maintained positive momentum, with RBD Palm oil prices closing at USD 1,176 per metric ton FOB Kelang.
The first quarter of 2025 saw RBD Palm Oil correct sharply from late-2024 highs as India’s elevated inventory levels and increased soybean oil imports reduced immediate buying needs. While Southeast Asia faced tightening supplies, Indian buyers leveraged stockpiles to resist higher offers. Prices dipped steadily through January and February before stabilizing in March amid Malaysian output concerns.
The quarter also reflected shifting trade flows, with buyers prioritizing alternative oils due to palm’s relative premium. Despite early weakness, technical support emerged late in the period, signalling the potential for stabilization. By the end of March, RBD Palm oil prices averaged USD 1,120 per metric ton CIF Nhava Sheva.
In Q2 2025, RBD Palm Oil prices softened as India’s monsoon-related demand slowdown outweighed lingering supply concerns in Southeast Asia. The market traded within a narrow band, reflecting cautious buying and stable fundamentals. Malaysia’s production shortfalls provided temporary support, while competitive pricing relative to soybean and sunflower oils limited deeper losses. Indonesia’s export policy adjustments also helped maintain supply discipline, preventing any sharp declines.
Despite typical seasonal weakness, June showed unexpected strength driven by short-term supply tightness. According to PriceWatch, the quarter demonstrated a delicate balance between subdued Indian import appetite and Southeast Asia’s constrained output, RBD Palm oil prices assessed at USD 1,072 per metric ton CIF Nhava Sheva.
The year opened with modest gains for RBD Palm Oil as supply chain restocking supported early-year buying. India’s tariff adjustments and Malaysia’s export recovery provided upward momentum, lifting prices steadily through February and March. Market sentiment remained cautious yet constructive, with buyers responding to relatively favourable pricing compared to other vegetable oils.
The quarter laid the foundation for 2024’s more volatile trajectory as seasonal and policy-related shifts began to shape future expectations. By the end of March, RBD Palm oil prices averaged USD 930 per metric ton CIF Nhava Sheva.
Q2 2024 saw RBD Palm Oil gradually recover as post-monsoon demand improved, and Indian refiners rebuilt inventories. Prices steadily advanced throughout the quarter, supported by competitive positioning against sunflower and soybean oils. Global stocks remained comfortable, keeping the rally contained and preventing excessive volatility.
The market benefited from stronger regional demand while maintaining alignment with broader vegetable oil trends. By quarter-end, prices found equilibrium, reinforcing palm oil’s resilience despite macroeconomic uncertainties. The quarter closed with RBD Palm oil prices averaging USD 1,013 per metric ton CIF Nhava Sheva.
In Q3 2024, RBD Palm Oil prices gained momentum amid Malaysia’s seasonal production decline and India’s pre-Diwali restocking. Logistics bottlenecks tightened near-term availability, driving prices higher through September. However, late-quarter weakness emerged after Indonesia unexpectedly expanded export quotas, easing some of the supply tightness. The quarter highlighted the growing influence of biofuel mandates and India’s import substitution strategy in shaping price direction.
While sentiment was initially bullish, improved shipment flows moderated the rally by quarter-end. Overall, the period reinforced palm oil’s sensitivity to policy-driven shifts in Southeast Asia. RBD Palm oil prices concluded the quarter at USD 1,112 per metric ton CIF Nhava Sheva.
Q4 2024 witnessed a sharp rally in RBD Palm Oil as Indonesia’s export restrictions, coupled with India’s festive season restocking, created unprecedented tightness. Prices peaked in November when delayed shipments and biodiesel-driven demand amplified supply concerns. However, the rally lost steam in December as buyers resisted record levels, triggering mild profit-taking.
Extreme volatility marked the quarter, with logistical challenges and biodiesel mandates reshaping traditional trade flows. Despite the late pullback, the quarter closed significantly higher than previous periods, underpinned by robust structural demand and constrained supply. By year-end, RBD Palm oil prices settled at USD 1,314 per metric ton CIF Nhava Sheva.
Molecular Weight[g/mol]
CAS No
HS Code
Molecular Formula
RBD Palm Oil (Refined, Bleached, and Deodorized Palm Oil) is a premium-grade vegetable oil obtained from the flesh (mesocarp) of the oil palm fruit (Elaeis guineensis). After crude palm oil (CPO) is mechanically extracted, it undergoes refining to remove free fatty acids, color pigments, and odors resulting in a clear, light yellow, neutral-smelling oil suitable for food, industrial, and cosmetic use.
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 Oil) |
| Physical state | Liquid at warm temperatures; semi-solid at room temperature |
| Colour | Golden yellow to reddish |
| Odour | Neutral to slightly buttery |
| Melting point/freezing point | 33–39 °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 | 39–53 mm²/s at 40 °C |
| Dynamic viscosity | 40–50 mPa·s at 40 °C |
| Water solubility | Insoluble in water |
| Partition coefficient n-octanol/water (log value) | ~6.5–7.5 |
| Vapour pressure | Negligible at 20 °C |
| Density | 0.89–0.92 g/cm³ at 20 °C |
Applications
RBD Palm Oil is extensively used in the manufacture of cooking oils, margarine, shortenings, instant noodles, bakery fats, and confectionery coatings. Industrially, it is a key feedstock for oleochemical production, including fatty acids, soap noodles, glycerine, and biodiesel. Its balanced saturated and unsaturated fatty acid profile, oxidative stability, and semi-solid consistency at room temperature make it ideal for tropical climates and shelf-stable formulations.
Climate and Farming Impact – (2024)
Unpredictable weather patterns—including excess rainfall in Malaysia and drought in parts of Indonesia—lowered fruit yields and disrupted harvesting. This coincided with strong global demand from the food and biofuel sectors, keeping prices elevated. Furthermore, the enforcement of sustainability certifications and EU deforestation-free regulations restricted export access to premium markets, influencing overall trade dynamics and price movement.
Feedstock & Logistic Disruptions – (2023)
Extreme weather events, heavy rainfall, and logistical bottlenecks in Southeast Asia disrupted crude palm oil (CPO) supplies—RBD Palm Oil’s key feedstock. Export restrictions, high inflation, port congestion, and elevated freight costs intensified supply chain challenges. Meanwhile, low stock levels in major importing countries and fluctuating CPO prices caused short-term price spikes.
Russia-Ukraine War – (2022)
The conflict created severe disruptions in the sunflower and rapeseed oil supply chains, making RBD Palm Oil a key substitute in global edible oil markets. Demand spiked across Europe, South Asia, and Africa, putting upward pressure on prices. Simultaneously, the war increased energy, fertilizer, and freight costs, significantly raising production expenses for palm oil producers and processors.
Post-COVID Demand Recovery – (2021)
With economies reopening, demand for RBD Palm Oil rebounded sharply, particularly for cooking oils, processed foods, margarine, and instant noodles. Surging import demand from India, China, and the Middle East drove prices higher. However, ongoing labour shortages in Malaysia and Indonesia limited supply growth, tightening the market and supporting elevated price levels.
The COVID-19 Pandemic – (2020)
Global lockdowns and labour shortages significantly disrupted palm plantation operations and refining activities, including RBD Palm Oil production. Restricted transportation, mill closures, and port shutdowns delayed shipments and reduced processing capacity. As demand from HORECA (hotels, restaurants, catering) and food processing sectors declined temporarily, inventories rose, causing oversupply and price volatility.
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Molecular Weight[g/mol]
CAS No
HS Code
Molecular Formula
RBD Palm Oil (Refined, Bleached, and Deodorized Palm Oil) is a premium-grade vegetable oil obtained from the flesh (mesocarp) of the oil palm fruit (Elaeis guineensis). After crude palm oil (CPO) is mechanically extracted, it undergoes refining to remove free fatty acids, color pigments, and odors resulting in a clear, light yellow, neutral-smelling oil suitable for food, industrial, and cosmetic use.
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 Oil) |
| Physical state | Liquid at warm temperatures; semi-solid at room temperature |
| Colour | Golden yellow to reddish |
| Odour | Neutral to slightly buttery |
| Melting point/freezing point | 33–39 °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 | 39–53 mm²/s at 40 °C |
| Dynamic viscosity | 40–50 mPa·s at 40 °C |
| Water solubility | Insoluble in water |
| Partition coefficient n-octanol/water (log value) | ~6.5–7.5 |
| Vapour pressure | Negligible at 20 °C |
| Density | 0.89–0.92 g/cm³ at 20 °C |
Applications
RBD Palm Oil is extensively used in the manufacture of cooking oils, margarine, shortenings, instant noodles, bakery fats, and confectionery coatings. Industrially, it is a key feedstock for oleochemical production, including fatty acids, soap noodles, glycerine, and biodiesel. Its balanced saturated and unsaturated fatty acid profile, oxidative stability, and semi-solid consistency at room temperature make it ideal for tropical climates and shelf-stable formulations.
RBD Palm Oil pricing is shaped by multiple interconnected factors. As it is refined from Crude Palm Oil (CPO), any fluctuation in CPO—caused by weather, plantation yields, or seasonal harvest cycles—directly impacts refined oil prices. Global demand trends from food manufacturing, bakery fats, oleochemicals, and biodiesel create pressure on supply and influence market sentiment. Seasonal production patterns, export restrictions, and logistical challenges such as port congestion and freight costs further drive short-term price movements. Additionally, trade policies, import/export duties, and sustainability certifications like RSPO and ISPO affect pricing competitiveness. Broader macroeconomic variables, including exchange rate volatility, inflation, and energy costs, also shape production expenses and international price trends.
Negotiating favourable RBD Palm Oil prices requires market awareness and strategic engagement. Buyers should closely monitor CPO price movements, production forecasts, and biofuel policies to strengthen their negotiation leverage. Long-term supply contracts or forward purchase agreements can secure pricing stability and priority allocation during tight markets. Exploring multiple sourcing options across Malaysia, Indonesia, and alternative producers helps benchmark quality, logistics, and pricing. Building strong supplier relationships based on transparency and trust often results in more flexible terms, preferential treatment, and cost advantages. Additionally, optimizing incoterms such as FOB versus CIF, aligning shipment schedules, and negotiating freight rates can significantly reduce the total landed cost of procurement.
RBD Palm Oil procurement faces risks from price volatility, supply disruptions, quality inconsistencies, and regulatory challenges. Prices fluctuate due to weather events, biofuel mandates, and competing edible oil trends, making futures or forward contracts essential for price stability. Supply disruptions may arise from monsoon floods, droughts, port congestion, or geopolitical unrest in key producing countries, which can be mitigated through supplier diversification, safety stock management, and close monitoring of regional production. Quality issues, including inconsistent refining or adulteration, can be addressed by setting strict specifications, requiring third-party lab tests, and conducting supplier audits. Finally, changing import duties, sustainability regulations, and currency fluctuations demand proactive compliance measures and currency hedging strategies.
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