Market Newsletter
March, 1999
The Proceedings of the November 1998, IFEAT INTERNATIONAL CONFERENCE, held in London, are now available. Presentations as to the state of our industry ñ present and possibly in the future ñ were very informative. We recommend to all our friends to order this publication, which is available through the IFEAT office in London.
AUSTRAILIAN ESSENTIAL OILS
Favorable climatic conditions have resulted in excellent yields of high quality oil. Prices have receded during the last few weeks and have become quite competitive. Interesting quantities of BORONIA ABSOLUTE are currently offered at competitive prices.
BRAZILIAN ESSENTIAL OILS AND AROMATIC CHEMICALS
Recent ORANGE OIL/ORANGE TERPENE/D'LIMONENE shipping price increases have been accepted in many markets. It remains to be seen whether the Brazilian industry's goal of still higher prices can be realized prior to new crop production. Meanwhile, Brazilian suppliers have advised us that steamship lines have begun to quote higher freight rates, asking for freight rate increases of as much as 30% for shipments to European ports. While ORANGE WATER PHASE stocks have been exhausted, limited tonnage of ORANGE OIL PHASE ex the 1997/98 crop is available for prompt shipment. EUREKA LEMON OIL (Sicilian type) is presently available in tonnage, at competitive prices. GREEN MANDARIN OIL production is taking place at this time with only limited quantities offered. Based on current exchange rates, our suppliers have dropped their price for NATURAL ALPHA BISABOLOL by about 20%. Pricing for L-CARVONE has become more competitive for the same reason. TONKA BEANS are presently being harvested and substantial quantities of natural beans are currently offered (also by our Venezuelan shippers) at USD6.00-6.50 per kilo FOB Brazil or Venezuela respectively. The crop will end Mid-April.
CHINESE ESSENTIAL OILS AND AROMATIC CHEMICALS
Spring crop CASSIA OIL production is estimated to be around 150 tons, plus carry-over stocks, which should satisfy existing demand. CAMPHOR POWDER NATURAL prices have dropped to extremely low levels, with many buyers having shifted to CAMPHOR POWDER SYNTHETIC. The latter product's price, despite the GUM TERPENINE supply problems, has been dropping in recent weeks due to weak demand. CITRONELLA and GERANIUM OIL prices have firmed somewhat in recent weeks due to limited stocks. Despite the feedstock supply problems outlined by us in the past, (i.e. restrictions in the cutting of sassafras trees in Vietnam, with less oil moving into China, and restrictions on the cutting of trees in China), HELIOTROPIN prices have moved up only slightly, to date. Most of our traditional suppliers do foresee, however, substantial price increases should demand revive. Only limited demand is keeping LITSEA CUBEBA OIL prices at current low levels. Should demand increase prior to new crop distillation, our suppliers anticipate the market to move up quickly. Domestic CRUDE MENTHA ARVENSIS OIL prices are advancing, in anticipation of a smaller crop this year. MENTHOL and PEPPERMINT 50% prices are rising in tandem. Genuine CHINESE PEPPERMINT OIL 50% is difficult to find and most suppliers are unwilling to accept orders for future shipment. SPEARMINT OIL prices remain firm with existing stocks limited, and further prices increases are possible. The price of STARANISEED OIL has advanced somewhat in recent weeks because of increased domestic use for the production of ANETHOL.
EGYPTIAN ESSENTIAL OILS
Lack of demand is reflected in the current price of GERANIUM OIL, presently offered around USD50.00 per kilo CFR world ports. This applies also to CHAMOMILE OIL, offered at USD500.00 per kilo CFR and below, depending on quantity.
INDIAN ESSENTIAL OILS AND AROMATIC CHEMICALS
Traditional suppliers advise that the price of CRUDE OIL MENTHA ARVENSIS has been rising, resulting in price increases for all derivatives. This was preceded by active buying, primarily on the part of European houses and China. While there is still uncertainty as to the percentage decrease in the MENTHA ARVENSIS acreage under cultivation this year, unfavorable weather conditions have delayed plantings, in turn delaying at least part of the mint harvesting ñ which may influence the mint oil production should it extend into the monsoon season. SANDALWOOD OIL prices continue to advance. ëAGMARK' oil is now offered around USD350.00-360.00 kilo CFR by air. In order to recapture market share, several shippers have upgraded their PALMAROSA OIL quality and are actively soliciting orders. Please request lot samples from us if this oil is of interest to you. OIL DAVANA prices, after dropping to around USD600.00 per kilo CFR by air, are gradually improving again amidst rumors that this year's production will be less than originally anticipated. It remains to be seen to what extent substitute products have reduced the market demand and imposed a price ceiling on the oil.
INDONESIAN ESSENTIAL OILS AND AROMATIC CHEMICALS
Current low prices for most Indonesian products appear to reflect a combination of the weakness of the currency and lack of demand. OIL CANANGA, OIL CITRONELLA, OIL CLOVELEAF and its derivatives, OIL PATCHOULI, OIL SANDALWOOD are priced very competitively at this time. The only exception has been OIL NUTMEG, now priced close to USD50.00 per kilo CFR world ports.
PERUVIAN ESSENTIAL OILS
While the January/February production was normal, March production has declined, due to the after effects of "El Nino". Total Peruvian LIME OIL production is estimated to be 20-30% below normal distillation figures. Adequate stocks are presently available at competitive prices.
