Market Newsletter
Due to still receiving E-Mail addresses from recipients of our News Letter – our January issue will again be mailed. If you would like to receive future issues, please provide us with your E-Mail address, if you have not yet done so. Contact information should be sent to dianed@uhe.com.
In early February many of our Chinese industry friends will be on holiday, celebrating their New Year. We take this opportunity to wish them a happy, healthy and prosperous
Meanwhile, however, they are very concerned over the anticipated loss of part, if not all, of the
current "export tax rebate" and the accelerating increase in the value of their currency, the Yuan.
Thus, many offers are currently being made with price adjustment clauses attached, based on future
exchange rates. Additionally, while our industry's products have been traded mainly on US dollar
basis, until now, a number of suppliers have been pricing their products on Yuan and / or Euro basis, citing their fears of an ongoing decrease in the value of the US dollar.
Also, in addition to the current currency fluctuation, suppliers around the world cite ever-higher
production costs to justify respective price increases in general.
AMERICAN ESSENTIAL OILS
Pricing of all American oils remained firm during January. With Florida experiencing normal weather conditions, the United States Department of Agriculture's crop forecast for the 2007/2008 season continues to expect an Orange crop of 168 million boxes. The latest Grapefruit (white and colored varieties) forecast shows a crop of 25 million boxes.
AUSTRALIAN ESSENTIAL OILS
Major January floods in the growing areas, with the potential damage not yet assessed, have raised
questions as to what quantities of new crop TEA TREE OIL will be available in two to three months.
While forward pricing is uncertain, prime quality oil, in ton lots, continues to be offered at USD31.00 –
32.00 per kilo CFR world ports.
BRAZILIAN ESSENTIAL OILS AND AROMATIC CHEMICALS
No market changes were observed during January as far as ORANGE OIL and its derivatives are
concerned. It is rumored that the 2008 / 2009 season’s Orange crop will be smaller than the last one.
New crop LEMON OIL will become available next month and current quotations have been in the
market around USD23.00 per kilo FOB Santos. We are without price indications for TAHITI LIME
OIL C. P. – which will also be processed starting next month. New crop GREEN MANDARIN OIL
has been on offer around USD36.00 per kilo FOB Santos. Small quantities of ROSEWOOD OIL have
been quoted recently at USD96.00 – 98.00 per kilo CFR world ports.
CHINESE ESSENTIAL OILS AND AROMATIC CHEMICALS
While many of our traditional suppliers have been forewarning us of potentially higher future prices
based on currency fluctuations and tax changes, for the time being their pricing during January
mostly reflected variations in production, as well as supply and demand. ALDEHYDE C-14 pricing
advanced to USD6.30 per kilo and ALDEHYDE C-18 is offered at USD7.50 per kilo CIF, based on
current exchange rates. Substantial quantities of CASSIA OIL are reportedly being held in strong
hands and current quotations have been as high as USD16.50 per kilo CIF world ports. Its derivatives,
NATURAL BENZALDEHYDE and NATURAL CINNAMIC ALDEHYDE are priced at USD44.50 per
kilo and USD23.50 per kilo CIF respectively. With only limited quantities available CITRONELLA OIL
offers have ranged from USD10.50 – 10.90 per kilo CIF. DIPHENYL OXIDE is currently available at
USD2.80 per kilo CIF. Although this is the crop season, production of OIL EUCALYPTUS
GLOBULUS 80% has been less than expected and current price has firmed to USD6.30 per kilo CIF.
Its derivative, EUCALYPTOL 99% is presently priced around USD8.30 per kilo CIF. Substantial
quantities of NATURAL OIL GARLIC FCC have entered the market, priced around USD36.90 per
kilo FOB in ton quantities and DECOLORIZED OIL GARLIC FCC has been quoted at USD57.30 per
kilo FOB, for minimum ton lots. This being the off-season, with only limited quantities available, prime
quality GERANIUM OIL prices have advanced to around USD85.00 per kilo CIF. OIL GINGER has been on offer at USD40.00 – 45.00 per kilo CIF. LITSEA CUBEBA OIL prices being firm, at around
USD15.50 per kilo CIF, NATURAL CITRAL FCC (96%) has been on offer in recent days at USD23.80
per kilo CIF. MENTHOL BP / USP is currently priced, in FCL quantities, around USD16.00 per kilo
CIF. METHYL SALICYLATE has been on offer, in FCL quantities, at USD2.50 per kilo CIF. Several
ORGANIC oils have appeared on the market, without quantities being named, such as ORGANIC
ANISEED OIL, ORGANIC CASSIA OIL, ORGANIC CITRONELLA OIL, ORGANIC EUCALYPTUS
GLOBULUS OIL with pricing on demand. OIL PEPPERMINT 50% has been on offer at around
USD9.00 per kilo CIF. PHENYL ETHYL ALCOHOL prices advanced to USD5.50 per kilo CIF in recent
days, for March shipment. NATURAL PERILLA OIL has been on offer at USD195.00 per kilo CIF
world ports. STAR ANISEED OIL price has advanced to USDUSD7.40 – 8.00 per kilo and NATURAL
ANETHOL to USD9.10 – 9.40 per kilo CIF. New crop OIL TANGERINE, in FCL quantities, has been
offered at USD18.35 per kilo CIF world ports. VETIVER OIL is currently priced at USD72.00 per kilo
CIF world ports.
INDIAN ESSENTIAL OILS AND AROMATIC CHEMICALS
BLACK PEPPER OIL has been on offer as high as USD79.00 per kilo CFR world ports – with
traditional suppliers unwilling to commit to long terms contracts, due to uncertain future BLACK
PEPPER SPICE prices. Until new crop production in June, CELERY SEED OIL prices are foreseen to
advance. Current pricing is around USD80.00 per kilo CFR. CINNAMIC ALDEHYDE is currently on
offer, in multi ton quantities, at USD4.50 per kilo CFR world ports. COCHIN OIL GINGER FCC has
been offered at USD90.00 – 105.00 per kilo CFR, depending on supplier and quantity. While CUMIN
SEED OIL has always been priced lower ex MIDDLE EAST production, in view of the current
shortage of Egyptian and Turkish oil, Indian oil (testing 30% Cumin Aldehyde) is currently on offer at
around USD80.00 per kilo CFR. Traditional suppliers of DAVANA OIL advise that demand has been
weak, with old crop currently priced around USD850.00 per kilo CFR via air in anticipation of new crop
distillation starting shortly. In minimum ton lots, ALPHA IONONE has been on offer at USD11.50 per
kilo, BETA IONONE at USD9.15 per kilo, GAMMA METHYL IONONE at USD10.10 per kilo, all on
CIF world ports basis. Latest LEMONGRASS OIL prices have ranged from USD15.00 – 16.00 per kilo
CFR. Smaller producers have offered MENTHOL BP / USP in FCL quantities at slightly below
USD16.00 per kilo, shipped as “dry cargo” and around USD16.50 per kilo, shipped as “reefer cargo”,
both on CIF world port basis. OIL PALMAROSA is currently priced around USD26.00 per kilo CFR.
PAR ANISIC ALCOHOL 99% has been on offer, in FCL quantities, at USD9.50 per kilo CFR world
ports. SANDALWOOD OIL, subject to export license being granted, has been on offer at
USD1,890.00 per kilo CFR via air, for March shipment.
INDONESIAN ESSENTIAL OILS AND AROMATIC CHEMICALS
In general, all Indonesian products remain in short supply, priced in line with those quoted in our
December Market News Letter. A few drums of OIL CANANGA have been quoted at USD88.00 per
kilo CFR. CITRONELLA OIL is presently priced lower than Chinese oil, at USD10.00 per kilo CFR
world ports. Crude CLOVE LEAF OIL 75% has been offered at USD6.95 per kilo CFR. Depending on
quality, quantity and supplier, MASSOIA BARK OIL is presently freely available at USD275.00 –
300.00 per kilo CFR via air. Traditional exporters point out that the combination of recent years’
limited NUTMEG OIL demand, at relative low prices, and plant deceases resulting in the ongoing
decrease of the tree population, account for the current oil shortage and firm pricing. The latest
offers received by us have been at USD43.50 – 46.00 per kilo CFR world ports. The OIL
PATCHOULI market situation remains confusing. It remains to be seen what quantities new crop oil
production will yield, available late March / April. Should production be excessive some exporters
predict prices will collapse once again. SANDALWOOD OIL continues to be quoted around
USD1,250.00 per kilo CFR via air. VETIVER OIL remains in short supply. The very limited quantities
have been quoted at USD86.00 – 88.00 per kilo CFR world ports.
PARAGUAYAN ESSENTIAL OILS
Citing adverse weather conditions during last winter and spring, the low prices at which
PETITGRAIN OIL sold in recent years and the continuing drop in the value of the US dollar, has
resulted in severely reduced production. The most recent parcel available was priced around
USD20.00 per kilo CFR with no further offers obtainable at present.
SRI LANKAN ESSENTIAL OILS
Higher priced than available from other origins, CARDAMOM OIL has been on offer at USD335.00
per kilo CFR via air. CINNAMON BARK OIL pricing currently ranges from USD275.00 – 300.00 per
kilo CFR via air, depending on quality and supplier. CINNAMON LEAF OIL has been quoted at
USD14.25 per kilo CFR. We have been without any offers for ORDINARY CITRONELLA OIL during
January, however. GINGER OIL is available at USD155.00 per kilo CFR and VETIVER OIL at
USD165.00 – 175.00 per kilo CFR, both offered for air shipment. Latest SANDALWOOD OIL offers
were made at USD1,450.00 per kilo CFR via air. A multitude of ORGANIC ESSENTIAL OILS, with
NOP certification, has become available, such as OIL CARDAMOM, CINNAMON BARK and LEAF,
CITRONELLA, CLOVE BUD and STEM, GINGER, LEMONGRASS, MACE and NUTMEG, BLACK
PEPPER and VETIVER – with pricing depending on quantity and supplier.
