Market Newsletter
December, 1999
ARGENTINE ESSENTIAL OILS
New crop ORANGE OIL production is about to start and is estimated to be normal. Some quantities of RED MANDARIN OIL and PINK GRAPEFRUIT OIL are still available at regular market prices.
AUSTRALIAN ESSENTIAL OILS
Supplies continue to exceed demand for TEA TREE OIL. Depending on quantity, traditional suppliers are offering this oil in the USD19.00 per kilo CFR world ports range. They point out, however, that at this level profitability becomes questionable for many producers. PARSLEY LEAF OIL and PARSLEY HERB OIL remain competitively priced and are available in commercial qualities.
BRAZILIAN ESSENTIAL OILS AND AROMATIC CHEMICALS
ORANGE PEEL OIL and CITRUS TERPENES (D'Limonene) prices have remained firm in recent weeks and, with resellers' old crop stocks having been depleted to quite an extenT, demand for this season's products is increasing. Small quantities of BITTER ORANGE OIL and GREEN MANDARIN OIL remain available for prompt shipment. ALPHA BISABOLOL NATURAL prices have softened some more and this product is currently priced at USD75.00 per kilo CFR world ports in drum and multi drum quantities. LAEVO CARVONE continues to be priced competitively for the time being. TONKA BEANS are favorably priced at present, particularly in consideration of possible future supply problems with beans ex Venezuela, due to said origin's most recent natural disasters.
CHINESE ESSENTIAL OILS AND AROMATIC CHEMICALS
With increasing demand, prices for ANETHOL and STARANIS OIL firmed in recent weeks; while lacking demand for CASSIA OIL resulted in price decreases during December. With limited supplies available from other origins, as well as from China, CITRONELLA OIL pricing currently exceeds USD5.00 per kilo CIF, despite limited world market demand. During December the supply situation for OIL EUCALYPTUS GLOBULUS 80% improved somewhat and prices have stabilized. On the other hand, prices for EUCALYPTOL have been moving upward because of increasing prices for the main feedstock, OIL EUCALYPTUS EX CAMPHOR. Except for some high priced carried-over inventories of OIL GERANIUM, traditional suppliers' stocks are quite limited. Lacking demand has depressed current pricing. Latest HELIOTROPIN offers have been quite competitive. Our suppliers insist, however, that future prices will have to advance, based on higher feedstock prices. The previously reported limited production of OIL LITSEA CUBEBA led to defaults in recent weeks, with prices advancing. Despite suppliers now realizing that there are only a limited number of buyers remaining in the market, further price fluctuations may occur prior to new crop production. MENTHOL and PEPPERMINT OIL 50% prices declined during December, following Indian price declines. SPEARMINT OIL prices rose in the domestic market early in December but with support from the world market lacking, suppliers had to cut their export prices once again. Of continuing concern has been the contamination of a number of parcels offered.
INDIAN ESSENTIAL OILS AND AROMATIC CHEMICALS
As per New Delhi newspaper articles in recent days, the Indian government, at request of the All India Menthol Association, will investigate alleged MENTHOL market manipulation of recent months that reportedly threatens the economic survival of a multitude of smaller traders and exporters. In the meanwhile, however, pricing of MENTHOL, DEMENTHOLIZED OIL MENTHA ARVENSIS and other MENTHA DERIVATIVES has remained weak. Depending on quantity, MENTHOL USP/BP is offered at USD14.50 - 15.30 per kilo CFR/CIF world ports. DEMENTHOLIZED OIL MENTHA ARVENSIS 50% is available, depending on quality and quantity, in the USD5.00 per kilo CFR/CIF world ports range. Traditional shippers of OIL SANDALWOOD are still awaiting issuance of export licenses in order to fulfill existing contracts. OIL DAVANA prices have declined further, with some established exporters willing to sell below USD350.00 Kilo CFR air. LEMONGRASS OIL is available for prompt shipment around USD13.00 per kilo CFR world ports, although interest remains weak. ANETHOL 21/22, in minimum ton lots, is presently priced as low as USD9.20 - 9.50 per kilo CFR. Depending on quantity and supplier, THYMOL CRYSTALS are currently offered at USD8.10 - 8.95 per kilo CFR world ports.
INDONESIAN ESSENTIAL OILS AND AROMATIC CHEMICALS
Pricing and availability of all CLOVE products remained unchanged during the month of December. NUTMEG OIL prices have remained firm, with traditional suppliers holding the continuing political problems in Aceh province mainly responsible for current market conditions. High testing oil is now offered at USD57.00 per kilo CFR world ports.
MADAGASCAN ESSENTIAL OILS
Lack of support on the part of world market buyers has resulted in stockists of CLOVELEAF OIL - and holders of shipment contracts - reducing their prices substantially in recent weeks. In container quantities this oil is now priced below the Indonesian quality.
SRI LANKAN ESSENTIAL OILS
Limited quantities of OIL CINNAMONLEAF were traded during December below USD9.00 per kilo CFR. Very small quantities of ORDINARY CITRONELLA OIL (less than ton lots) failed to find interest at USD9.55 per kilo CFR world ports. We are without offers for BLACK PEPPER OIL and/or OLEORESIN BLACK PEPPER from our traditional suppliers, at this time.
TURKISH ESSENTIAL OILS
Several essential oil distillers, in the past working through trading houses, have become exporters themselves in recent months, offering interesting quantities of ANIS OIL, CUMIN OIL, LAUREL LEAF OIL, MYRTLE OIL, ORIGANUM OIL, etc. We will be pleased to provide specific offers/samples for the one or other oil, on request.
