Market Newsletter
Once more we wish all our industry friends a
HAPPY AND PROSPEROUS NEW YEAR
Please note, in early 2008 we will discontinue our Market News Letter in printed form. Many of
the suppliers and buyers we work with have been requesting to have it E-MAILED to them.
Should you wish to remain on our circulation list, please revert, either by fax on your letterhead
or by e-mail to diane@uhe.com, with instructions as to whom it should be addressed to along
with their e-mail address.
While it appears that, in the near term, China will not let the Yuan / Dollar exchange rate vary
substantially, many exporters have requested that January shipments be permitted to be made
in December, with the expectation that the existing export tax rebates will be phased out in the
beginning of 2008.
AMERICAN ESSENTIAL OILS
All markets remained firm during December. The supply of various American CITRUS OILS
should be watched closely. LEMON OIL has been in short supply, with prices climbing. With
Brazil having already committed most of the 2007/2008 season ORANGE crop, it is anticipated
that prices of FLORIDA ORANGE OIL, as well as those of its derivatives, will continue to
advance. This applies equally to PEPPERMINT and SPEARMINT OIL.
ARGENTINE ESSENTIAL OILS
Small parcels of old crop RED MANDARIN OIL continue to be on offer, as well as LEMON
OIL, currently priced around USD23.00 per kilo CFR world ports.
AUSTRALIAN ESSENTIAL OILS
While current stocks are sufficient to cover our industry’s normal needs, shortages may develop
well before new crop oil becomes available around April. Prices have advanced to above
USD30.00 per kilo CFR world ports.
BRAZILIAN ESSENTIAL OILS AND AROMATIC CHEMICALS
AMAZON BASIN oils remain firmly priced, with only limited quantities of OIL BOIS DE ROSE
(Rosewood Oil) on offer in recent weeks. ALPHA BISABOLOL NATURAL has been in short
supply and prices continue to advance. The CITRUS OIL situation has remained unchanged in
recent weeks. Although processing of the 2007/2008 crop is still going on, only small quantities
of ORANGE OIL, ORANGE TERPENES and CITRUS TERPENES (D’Limonene) have been
offered, mainly by general trading houses, and prices continue to advance. Limited quantities of
EUREKA (Sicilian Type) LEMON OIL have been quoted around USD23.00 per kilo CFR. To
date we are without offers for new crop TAHITI LIME OIL C. P.. Citing higher production
costs and the declining value of the US dollar, prime quality OIL EUCALYPTUS CITRIODORA
prices have advanced to as much as USD9.50 per kilo CFR world ports, in multi-ton quantities.
All stocks of PALMAROSA OIL are reported to having been disposed of.
CHINESE ESSENTIAL OILS AND AROMATIC CHEMICALS
With China unwilling to accede to the request of the USA for near term appreciation of the
YUAN, pricing of our industry’s products (except for the effect of the anticipated revocation of
the export tax rebate) should be determined on the basis of supply and demand. ALDEHYDE
C-16 and C-18 prices remained unchanged during December, with ALDEHYDE C14
advancing to USD6.30 per kilo CIF. While CASSIA OIL pricing remained unchanged during
December, some traditional suppliers anticipate the market to weaken somewhat during
January / February. Pricing of its derivatives, NATURAL BENZALDEHYDE and CINNAMIC
ALDEHYDE remained unchanged in recent days. Meanwhile, limited CITRONELLA OIL
supplies and active demand have led to pricing advancing to as high as USD11.00 – 11.50 per
kilo CIF. CEDARWOOD and CLARY SAGE OIL quotations remained unchanged during
December. OIL EUCALYPTUS CITRIODORA is currently quoted in the USD11.00 per kilo CIF
range. OIL EUCALYPTUS GLOBULUS 80% pricing continues to firm. Its derivative,
EUCALYPTOL 99.5% has been offered at USD8.20 per kilo CIF. While GARLIC OIL prices
remain weak, OIL GINGER prices advanced somewhat, to around USD44.00 per kilo CIF. OIL
LITSEA CUBEBA is available at USD16.00 per kilo CIF, its derivative, NATURAL CITRAL FCC
(96%) at USD23.00 – 23.50 per kilo CIF. OIL PEPPERMINT 50% has been on offer in the
USD10.00 per kilo CIF range. ROSEMARY OIL pricing advanced to USD28.00 – 30.00 per kilo
CIF, depending on quantity. SPEARMINT OIL 60% is quoted at USD23.85 – 24.00, the 80%
quality at USD30.00 – 31.50 per kilo CIF. TEA TREE OIL continues to be offered around
USD21.00 - 22.00 per kilo CIF, depending on quantity. Limited quantities of new crop OIL
VETIVER has been on offer at USD72.00 per kilo CIF. NATURAL OIL WINTERGREEN, in
minimum ton lots, receded to slightly below USD14.00 per kilo CIF.
INDIAN ESSENTIAL OILS AND AROMATIC CHEMICALS
OIL CARDAMOM prices advanced to USD240.00 per kilo CFR via air. CELERY SEED OIL
pricing has weakened to around USD70.00 per kilo CFR. OIL CUMIN SEED pricing, based on a
short crop, has advanced to USD105.00 per kilo CFR. In anticipation of new crop production
starting in a couple of months, larger quantities of OIL DAVANA have been on offer. Oil
testing minimum 50% Davanone is currently priced around USD850.00 per kilo CFR via air. OIL
GINGER is currently priced around USD100.00 per kilo CFR. LEMONGRASS OIL has been on
offer at USD14.00 – 14.50 per kilo CFR, depending on quantity and supplier.
DEMENTHOLIZED OIL MENTHA ARVENSIS (WITHOUT TERPENES) was last offered at
USD9.60 per kilo CIF world ports. MENTHOL BP / USP prices continue to fluctuate from day
to day, currently quoted in the USD15.00 per kilo CFR range. OIL MENTHA PIPERITA is
offered around USD28.00 per kilo CIF world ports. OIL NUTMEG (low Myristicin) is quoted at
USD41.00 per kilo CFR, OIL PALMAROSA at USD25.50 – 26.50 per kilo CFR. OIL BLACK
PEPPER is priced at USD65.00 per kilo CFR. The latest SPEARMINT OIL 60% offers were
made at USD25.00 per kilo CIF.
INDONESIAN ESSENTIAL OILS AND AROMATIC CHEMICALS
By and large the Indonesian market remained unsettled during December.
Small quantities of OIL CANANGA have re-appeared in the market, priced in the USD80.00 per
kilo CFR range. CITRONELLA OIL quotes have reached USD11.00 per kilo CFR. CLOVE LEAF
OIL and its various derivatives remain in short supply and firmly priced. MASSOIA BARK OIL,
depending on quality, quantity and supplier, has been quoted at USD275.00 – 325.00 per kilo
CFR via air. NUTMEG OIL supplies continue to be limited with prices ranging from USD41.00 –
44.00 per kilo CFR, depending on quality and supplier. PATCHOULI OIL continues to be
quoted around USD150.00 per kilo CFR – with buyers placing their order on a hand to mouth
basis, hoping that prices will decline if demand remains weak. SANDALWOOD OIL availability
and pricing remained unchanged during the month. VETIVER OIL offers re-appeared in the
market, for small quantities only, around USD80.00 per kilo CFR world ports.
PARAGUAYAN ESSENTIAL OILS
The market situation remained unchanged during December. While OIL CABREUVA is freely
available, traditional suppliers advise that they are still unable to offer PETITIGRAIN OIL.
New crop OIL PALMAROSA will be available again in February.
SRI LANKAN ESSENTIAL OILS
While CINNAMON BARK OIL prices vary substantially from one supplier to the next –
CINNAMON LEAF OIL 75% prices have generally been quoted around USD14.00 per kilo CFR
world ports during December. Limited quantities of SANDALWOOD OIL are currently offered
at USD1,350.00 per kilo CIF via air.
VIETNAMESE ESSENTIAL OILS
No market changes were observed during December.
