Market Newsletter
February, 2000
In general, market conditions did not improve during the month of February. On balance, more essential oils and aromatic chemicals declined than increased in price.
ARGENTINE ESSENTIAL OILS
CITRONELLA OIL 85/35 production has resumed. Limited quantities are available at USD5.35 per kilo FOB Buenos Aires.
BRAZILIAN ESSENTIAL OILS AND AROMATIC CHEMICALS
Low priced stocks of ORANGE PEEL OIL and D'LIMONENE (CITRUS TERPENES) in resellers hands appear to have dwindled. While several of the major producers are sold out, as reported last month, we notice increased interest in the limited quantities still available ex the 1999/2000 season's crop - at current prices. BALSAM COPAIBA prices have weakened further and this product is currently available below USD2.50 per lb. FOB and lower for FCL quantities. OIL ROSEWOOD continues to be offered as low as USD17.50 per lb., both FOB Manaus.
CHINESE ESSENTIAL OILS AND AROMATIC CHEMICALS
It is unclear to what extent the recent earthquake and unusual snowfall in Yunnan province has/will result in crop damage pertaining to CITRONELLA, EUCALYPTUS and GERANIUM OIL. Meanwhile, however, allowing for firm prices due to currently limited stocks, additional speculative price increases have been noticed. CITRONELLA OIL new crop distillation will commence during May/June. OIL EUCALYPTUS distillation has been hampered by distillation facilities' shutdowns during the new year holiday and the weather conditions, making harvesting and transporting distilling material difficult. The short supply situation will continue for some time before the crude oil becomes more plentiful again. The coming GERANIUM crop was damaged even before the snowfall and, traditional suppliers, anticipating a short new crop, raised prices for the limited quantities available, despite weak demand. In spite of a USD0.50 per kilo domestic price increase for OIL SASSAFRAS during February - the HELIOTROPIN market remains weak. ETHYL MALTOL and MALTOL prices have not recovered from historical lows - despite major producers reportedly having met during February to discuss ways of stopping/reversing respective price declines during the month. MENTHOL and PEPPERMINT 50% prices declined during February, following ever lower Indian prices. Substantial price differences are showing - depending on each supplier's stock position. Demand has been lacking. The SPEARMINT OIL market has been stable during February. Carbon Tetrachloride contaminated parcels continue to be offered and lot samples should be closely examined. The major VANILLIN producers have increased their prices due to higher petroleum based feedstock prices.
INDIAN ESSENTIAL OILS AND AROMATIC CHEMICALS
With the exception of SANDALWOOD OIL, for which export licenses are still unavailable and remaining high priced - many oils and aromatics declined in price over the last few weeks. This pertains in particular to mint products. CRUDE and DEMENTHOLIZED MENTHA ARVENSIS OIL, MENTHOL USP/BP, as well as MELTED MENTHOL (MENTHOL FLAKES) and derivatives, such as MENTHYL ACETATE, etc. continue to decline in price. MENTHOL prices have declined to USD12.00 per kilo CIF world port. DEMENTHOLIZED MENTHA ARVENSIS is offered in the low USD4.00 per kilo CIF range. Indian suppliers are requesting bids for MENTHA PIPERITA and SPEARMINT OIL, with interest lacking. OIL DAVANA prices continue to fall. Depending on quality, prices have receded to USD300.00 - 350.00 per kilo CFR air, with buyers postponing purchases in anticipation of still lower prices once the current distillation period ends. BLACK PEPPER OIL has dropped to USD100.00 per kilo CFR world port.
INDONESIAN ESSENTIAL OILS AND AROMATIC CHEMICALS
With only limited quantities available, CITRONELLA OIL is offered at USD5.35 - 6.00 per kilo CFR, CLOVELEAF OIL at USD4.50 per kilo CFR. OIL CANANGA remains at USD26.00 - 29.00 per kilo CFR world ports. The supply situation for NUTMEG OIL continues unchanged - with prices ranging from USD55.00 - 57.00 per kilo CFR, depending on supplier and myristicin content. Low testing SANDALWOOD OIL has been on offer by third country sellers at USD210.00 per kilo CFR. Depending on suppliers, quantity and quality, OIL PATCHOULI continues to be offered at USD18.00 - 21.00 per kilo CFR. Indonesian shippers continue to offer VETIVERT OIL at USD29.00 - 30.00 per kilo CFR, with interest lacking. CRUDE EUGENOL is offered at USD5.75 per kilo CFR, EUGENOL USP at USD7.15 per kilo CFR, ISO EUGENOL at USD9.65 per kilo CFR.
PARAGUAYAN ESSENTIAL OILS
OIL CABREUVA is presently priced at USD20.00 per kilo FOB Asuncion, with production sufficient to cover world demand. On the other hand, the hope for increase in production of OIL PETITGRAIN has not materialized to date. While the price, to date, remains slightly below USD25.00 per kilo FOB Asuncion, demand substantially exceeds supply.
SALVADORIAN NATURAL PRODUCTS
Demand for BALSAM PERU has been lacking. At the same time traditional shippers are indicating prices as high as USD6.00 per lb. FOB.
SOUTH AFRICAN ESSENTIAL OILS
Previous widespread wild fire damage will have a great impact on the coming season's production of BUCHU LEAF OIL. Traditional suppliers have been unable to predict what quantities will be distilled nor the price for the oil. New crop OIL TAGETES distillation will commence shortly, with pricing still to be determined.
SRI LANKAN ESSENTIAL OILS
ORDINARY CITRONELLA OIL offers in the upper USD9.00 per kilo CFR range have not been of interest to the market. CINNAMONLEAF OIL offers in the USD9.00 - 9.25 per kilo CFR range have not been attractive to traditional buyers. BLACK PEPPER OIL at USD140.00 per kilo CFR has found no takers.
VIETNAMESE ESSENTIAL OILS
Production of OIL CITRONELLA has resumed and oil testing 82/32 is offered in limited quantities at USD3.65 per kilo CIF world ports.
VENEZUELAN NATURAL PRODUCTS
TONKA BEANS NATURAL are presently offered at USD6.50 per kilo FOB LaGuaira for May through July shipment.
