Market Newsletter
November, 1999
We are pleased to report that the 1999 Hong Kong IFEAT CONFERENCE that took place in early November was very successful. The local organizers and the IFEAT staff are to be complimented for their efforts resulting in an informative program.
Next year's IFEAT conference is scheduled to take place in Florida, USA, from October 29 to November 2, 2000.
ARGENTINE ESSENTIAL OILS
GRAPEFRUIT OIL stocks have been shrinking due to the competitive pricing of white and pink oil. LEMON OIL continues to be offered in large quantities at USD12.00 - 13.00 per Kilo FOB Buenos Aires, depending on quantity and supplier. Following the lead of Brazilian suppliers, Argentine processors substantially increased the price of OIL ORANGE VALENCIA (FCC Quality), now offered at the same level as Brazilian (non-FCC) oil. As a new oil, Argentine producers are now offering PARSLEY LEAF OIL, with samples available upon request.
BRAZILIAN ESSENTIAL OILS AND AROMATIC CHEMICALS
The market for ORANGE OIL/CITRUS TERPENES (D'Limonene) has strengthened some more in recent weeks - with some of the major suppliers nominally pricing these products now at USD 1.20 per kilo FOB Santos. Limited quantities of BITTER ORANGE and MURCOTT OIL are available at competitive prices, as well as GREEN MANDARIN OIL. Lot samples are available. ROSEWOOD OIL is offered at USD44.00 per kilo and substantial parcels of BALSAM COPAIBA as low as USD4.50 per kilo - both FOB Manaus. Traditional suppliers advise that, with the onset of the rainy season in the production area, distillation of OIL EUCALYPTUS CITRIODORA will be considerably reduced for several months. Interesting quantities of LAEVO and DEXTRO CARVONE continue to be offered at competitive prices.
CHINESE ESSENTIAL OILS AND AROMATIC CHEMICALS
Current CITRONELLA OIL prices are slightly lower than at the beginning of November as the market failed to react to the sharp price increases earlier in the month. At the beginning of the month GERANIUM OIL speculation resulted in prices of USD60.00 per kilo and above. Since then, however, lack of sustained demand has forced prices down once again to USD53.00 per kilo CIF. EUCALYPTUS OIL remains in short supply - but should become easier to obtain once feedstock availability improves. Prices should recede once again at such time, despite limited availability. LITSEA CUBEBA OIL prices seem to have stabilized as present world market demand is considerably weaker than in years past. Due to lack of sales - and reacting to India's lower prices in recent weeks - Chinese suppliers reduced their prices for DEMENTHOLIZED PEPPERMINT OIL 50% to around USD6.50 per kilo and MENTHOL USP/BP to around USD17.00 per kilo, both CIF world ports. Future price developments remain uncertain. The second cutting of SPEARMINT OIL has been completed, yielding about 100 tons of rather poor quality oil with carvone content averaging about 40% only. During the last week of the month, Chinese suppliers have found demand becoming quite active with prices for 60% and 80% oil firming once again.
INDIAN ESSENTIAL OILS AND AROMATIC CHEMICALS
Traditional Indian suppliers continue to suffer from lack of demand for many essential oils and aromatic chemicals, resulting in quite competitive offers. With new crop DAVANA OIL coming to market in a few months, existing stocks of oil testing min. 60% Davanone are currently priced at USD370.00 - 400.00 per kilo CFR air. Higher priced lots of OIL SANDALWOOD (AGMARK), offered last month, remained unsold and the market has dropped back to USD355.00 per kilo CFR air. DEMENTHOLIZED OIL MENTHA ARVENSIS 50% and MENTHOL USP/BP sales, having declined substantially in recent weeks, resulted in price declines of close to 10% since our most recent report. This also applies to various other MINT DERIVATIVES. Meanwhile, Indian supplies of AROMATIC CHEMICALS are offering an ever-greater number of respective products at competitive prices and we solicit your specific inquiries.
INDONESIAN ESSENTIAL OILS AND AROMATIC CHEMICALS
With supplies limited at present, CITRONELLA OIL prices advanced in recent weeks and are now in line with Chinese prices. OIL CANANGA prices have further declined to USD26.00 per kilo CFR, CLOVELEAF OIL and its derivatives remain firmly priced, as well as NUTMEG OIL. In our October report we advised the industry of the availability of GAHARA WOOD OIL (Aquilaria Bancana). Since then we were informed that Indonesian authorities have stopped the use of the wood for distillation.
MOROCCAN ESSENTIAL OILS
Interesting quantities of OIL ROSEMARY are presently quoted at USD19.50 per kilo, OIL PENNYROYAL 85% at USD14.50 per kilo, in minimum 10 drum lots, CFR world ports. ATLAS CEDARWOOD is currently priced at USD11.50 per kilo CFR. Limited quantities of MYRTLE OIL are available at USD52.30 per kilo CFR air.
PARAGUAYAN ESSENTIAL OILS
Availability of OIL PETITGRAIN has improved slightly and, depending on supplier and quantity current offers range from USD22.50 to USD24.00 per kilo FOB Asuncion. River water levels having risen in recent days making water transport of oil to Buenos Aires and Montevideo, for transshipment from there, possible once again. OIL PALMAROSA is offered at USD17.00 per kilo and small quantities of OIL EUCALYPTUS GLOBULUS 70/75% at USD4.50 per kilo, both FOB Asuncion, for prompt shipment.
