Market Newsletter
Adverse weather conditions, resulting in shorter crops in various producing areas, as well as the
continuing decline of the value of the U.S. dollar, led to higher prices for a number of Essential
Oils. In anticipation of a continuing strengthening of the Chinese currency, an increasing
number of Chinese suppliers are asking that contracts asking for delayed shipment contain a
price adjustment clause.
AMERICAN ESSENTIAL OILS
The latest CITRUS forecast, dated March 9, showed a decrease in the Florida 2006 / 2007
season ORANGE crop from previously indicated 140,000,000 to 132,000,000 boxes. This
season’s California ORANGE crop is anticipated to yield 378,000,000 instead of the previously
indicated 46,000,000 boxes. Pricing of ORANGE OIL and its derivatives has remained firm.
While the March forecast shows a reduced GRAPE FRUIT crop for California, White and
Colored Florida GRAPE FRUIT crop figures increased from a combined 26,000,000 to
28,000,000 boxes. Pricing of respective oils has remained quite competitive. The California
LEMON crop is now foreseen to yield 16,500,000 versus the originally anticipated 20,500,000
boxes. The combined, Florida, California, Arizona, TANGERINE crop forecast shows at present
a crop reduction from 8,800,000 to 7,700,000 boxes. Pricing emains firm. Pricing of
PEPPERMINT and SPEARMINT OIL continues to firm ever so slightly.
ARGENTINE ESSENTIAL OILS
No market changes were reported during the month of March.
AUSTRALIAN ESSENTIAL OILS
Availability of EUCALYPTUS OILS and TEA TREE OIL remained limited, eflected in firm
prices during March.
BRAZILIAN ESSENTIAL OILS
While BALSAM COPAIBA prices continue to advance, OIL BOIS DE ROSE (ROSEWOOD
OIL) prices receded to around USD91.00 per kilo CFR air, in recent weeks. NATURAL ALPHA
BISABOLOL has been in short supply during March, some suppliers blaming adverse weather
conditions in December and January for difficulties in obtaining sufficient feedstock (CANDEIA
wood). Pricing has advanced to USD63.00 per kilo CFR word ports – and higher, depending on
quantity, with demand currently exceeding supply. In general, pricing in March remained
unchanged from February’s - but for prompt shipment in multiple tonnage - OIL EUCALYPTUS
CITRIODORA has been available at USD7.50 per kilo CFR. While offers for new crop LEMON
OIL EUREKA (Sicilian type) remain elusive. LEMON TERPENES (ex EUREKA LEMON OIL)
are currently offered at USD8.75 per kilo FOB Santos. TAHITI LIME OIL C. P. has been on
offer at USD26.00 per kilo FOB Santos. Substantial quantities of TAHITI LIME JUICE NFC, as
well as CLOUDY and CLARIFIED CONCENTRATE, have come on the market, competitively
priced. DISTILLED LIME TERPENES (ex KEY LIME OIL) have been on offer, in limited
quantities, at USD10.25 per kilo FOB Santos. GREEN MANDARIN OIL has been offered in
recent days at USD32.00 per kilo FOB Santos. Limited quantities of OIL ORANGE FCC and
CITRUS TERPENES have been on offer at USD2.45 – 2.60 per kilo CFR, depending on supplier
and destination. BITTER ORANGE OIL has been offered in recent days at USD35.00 per kilo
FOB Santos, in minimum ton quantities.
CHINESE ESSENTIAL OILS AND AROMATIC CHEMICALS
Most AROMATIC CHEMICALS prices remained unchanged during March – but ANETHOL
NATURAL is currently priced at USD7.60 per kilo CIF and NATURAL CAMPHOR advanced to
USD3.55 – 3.70 per kilo CIF, in FCL quantities. NATURAL CITRAL FCC (96%) has been
quoted at USD21.50 per kilo CIF. NATURAL GUAIACOL is presently quoted at USD7.00 –
7.15 per kilo CIF, depending on quantity and destination. CITRONELLA OIL prices continue
to firm. Latest offers, in FCL quantities, have been made at USD7.00 to as high as USD7.70 per
kilo CIF by traditional shippers. Following a short price decline earlier this month, OIL
EUCALYPTUS GLOBULUS prices recovered, now quoted at USD5.80 – 5.95 per kilo CIF. In
tandem, EUCALYPTOL 99.5% is currently quoted at around USD 7.35 per kilo CIF.
GERANIUM OIL prices firmed in recent days. This oil is presently offered at USD79.50 – 82.50
per kilo CIF. GINGER OIL pricing remained around USD30.00 per kilo CIF. LAVENDER OIL
has been on offer, in ton lots, at USD32.00 per kilo CIF. Pricing of OIL LITSEA CUBEBA
firmed slightly in recent weeks. PATCHOULI OIL (25% PATCHOULOL) has been on offer at
USD34.50 per kilo CIF. OIL SPEARMINT prices remained unchanged during March.
STARANIS OIL offers, in FCL quantities, were made in recent days at USD6.80 per kilo CIF
world ports. Traditional suppliers advise that, with the exception of a few drums, currently
nominally priced at USD15.00 per kilo CIF, there was no TANGERINE OIL production ex this
year’s crop. Small quantities of NATURAL WINTERGREEN OIL continue to be available for
prompt shipment at USD33.00 per kilo CIF world ports. The “cooling agent” WS-3 is presently
quoted at USD99.00 per kilo CIF world ports, in FCL quantities of 9,000 kilos.
INDIAN ESSENTIAL OILS AND AROMATIC CHEMICALS
It is unclear whether current lack of demand – or an anticipated large MENTHA ARVENSIS
crop – is reflected in the price reductions of recent days of MENTHOL BP/USP now quoted
around USD18.00 per kilo CIF. Trade sources report that – for June / July shipment FCL
quantities have been quoted at USD17.00 per kilo CIF world ports. DEMENTHOLIZED OIL
MENTHA ARVENSIS is presently quoted in the USD8.00 per kilo CIF range, depending on
quality. Limited quantities of OIL MENTHA PIPERITA have been offered around USD24.00
per kilo CIF, with sources at origin indicating that new crop acreage will be about the same as
last year. This being the off-season for LEMONGRASS OIL, pricing has remained in the
USD12.50 – 12.75 per kilo CFR range. This also applies to PALMAROSA OIL, lately quoted
around USD21.00 per kilo CFR. COCHIN GINGER OIL has been on offer at USD90.00 per kilo
CFR, BLACK PEPPER OIL at USD35.00 per kilo CFR. Pricing of OIL SANDALWOOD
remained unchanged during March.
INDONESIAN ESSENTIAL OILS AND AROMATIC CHEMICALS
Some traditional suppliers have been voicing their concern over the current and anticipated
weather conditions – into the fall, caused by the El Nino effect. The rains reportedly have
stopped and, if the current hot and dry weather will continue for several months, harvests of
CANANGA, CITRONELLA, NUTMEGS and PATCHOULI are said to suffer. Meanwhile offers
for prompt shipment continue to differ from one supplier to the next, more or less unchanged
from February’s. Exceptions are OIL CANANGA, currently priced as high as USD36.00 – 39.00
per kilo CFR and, depending on Patchoulol content, OIL PATCHOULI at USD44.00 - 46.00 per
kilo CFR world ports – with one offers being made at even higher prices. CLOVELEAF OIL and
various derivatives, such as EUGENOL and ISO EUGENOL quotations remained unchanged
during March. CLOVESTEM and CLOVEBUD OIL continue to be on offer at very competitive
prices
MOROCCAN ESSENTIAL OILS
Current pricing for ATLAS CEDARWOOD OIL is at USD15.50 per kilo, for new crop (available
May onward) WILD CHAMOMILE OIL at USD430.00 per kilo, PENNYROYAL OIL at
USD26.50 per kilo, ROSEMARY OIL at USD25.50 per kilo – all CFR world ports.
SRI LANKAN ESSENTIAL OILS
Traditional suppliers advise that new crop CINNAMON LEAF OIL will be available in a few
weeks, stating that the previous problem with adulterated oil has been overcome. Meanwhile,
limited quantities of this, as well as ORDINARY CITRONELLA, NUTMEG and BLACK
PEPPER OIL, have been firmly priced. CINNAMON BARK OIL supplies continue to exceed
demand and remains on offer at competitive prices.
TUNISIAN ESSENTIAL OILS
New crop production of CONCRETE and ABSOLUTE ORANGER, as well as NEROLI
BIGARADE, will be available late April. To date new crop pricing has not yet been advised.
This also applies to new crop ROSEMARY OIL, the distillation of which will commence in the
next few weeks. Traditional suppliers advise that this coming season’s production will be shorter
than last year’s due to insufficient rainfall which will lower the distillation yield. Prices are
expected to be higher than last year.
