NOVEMBER CLOSING COMMENTARY


Slow demand, desire to maintain market share, competition, falling Petroleum prices, and a strong dollar have all kept pricing on Aromatic Chemicals soft.  Exceptions, of course, do exist where there are production or feedstock issues but with Indian manufacturers continuing to produce more products we expect this softening to continue.

Nov 2015
Nov 2015

ORANGE OIL & TERPENES

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The fact that several major Brazilian suppliers did not participate in this year’s IFEAT conference is a sign of the state of this market.  Offers are limited and reports indicate that offered Oil tests at 0.8% aldehyde content.  Pricing for Oil and Terpenes continues to firm.

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Nov 2015
Nov 2015

ANISE OIL & NATURAL ANETHOLE

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Current pricing for Oil is unappealing for farmers, who will be holding on to stocks from the Spring Crop and reducing their production for the fall.  Reports indicate that demand is off which may suggest slackened demand from the pharmaceutical industry.  Despite the difficulties with the Anise market, pricing for Natural Anethole remains stable for now.

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Nov 2015
Nov 2015

Recent offers from China have featured softer prices than usual.  Reports of depleted stocks suggest that this Oil might be stock that has gone unaccepted.  Prices out of Egypt have also softened, likely as a result of competition and oversupply.  

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Nov 2015
Nov 2015

CORNMINT OIL & MENTHOL

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Lower pricing for Synthetic Menthol has doubtless caused some reformulation, keeping the pricing of Natural Menthol soft.   We have also seen Cornmint prices softening in addition to some quality issues from both Chinese and Indian vendors.  Going forward, one major Indian producer expects prices to increase due to stable demand from Europe and China.  This market will require close attention.

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Nov 2015
Nov 2015

EUCALYPTUS & EUCALYPTOL

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Quality issues with Eucalyptus samples are becoming more common, possibly due to the issues caused by heavy rains during the summer months.  With reportedly strong demand and little carryover, it’s possible that producers rushed production to get product to market more quickly. With new Oil expected to enter the market in December, we expect that pressures currently pushing up prices will dissipate.

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Nov 2015
Nov 2015

Clove Leaf Oil & Derivatives

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Pricing for both ingredients continues to be attractive as suppliers seem to be having no trouble covering demand.

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Nov 2015
Nov 2015

PATCHOULI OIL

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Currently there are broad differences in pricing and quality in the Patchouli market, with a 175% difference in pricing between the highest and lowest offers.  Prices depend on a combination of Patchouli Alcohol levels, acid values, and the island of origin.  To gauge this market properly one must know the quality needed versus the quality being offered by the competition.  We expect this situation to persist for the time being.

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Nov 2015
Nov 2015

Nutmeg Oil

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News from a well-known broker states that his suppliers claim that adulterated Oil is still being offered.  He further states that this adulteration is only detectable by a sophisticated lab.  

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Nov 2015
Nov 2015

GARLIC OIL CHINESE

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Prices continue to climb week by week.  A report from China claims that some Oil is nearing $300/kg and that this climb will likely continue through the Lunar New Year.

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Nov 2015
Nov 2015

CARDAMOM OIL

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Indian sources report an increase in prices as their “season” nears completion.  Prices on Oil coming out of Guatemala remain stable.

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Nov 2015
Nov 2015

ROSEMARY OIL MAROC & TUNISIAN

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It appears that stocks at both origins that are not covered by contracts have been exhausted.  Prices are expected to continue to firm.  

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Nov 2015
Nov 2015

LITSEA CUBEBA & NATURAL CITRAL

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Prices remain stable.

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Nov 2015
Nov 2015

Turpentine & Derivatives

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A report from October 10-17 indicates an increase in Gum Resin prices due to strong internal demand and decreasing supply.  Derivatives have dropped in price, and if demand stays flat this will likely remain the same.

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NOVEMBER OPENING COMMENTARY


According to the financial markets, the recent drop in stock values has been linked to China’s economic slowdown. Reports claim that industrial growth in September 2015 was at its second lowest since the 2008 Financial Crisis. Adding to this, our Chinese suppliers have stated that foreign demand is slow.  It is possible that China’s slowdown might be a consequence of a downturn in the West.

Nov 2015
Nov 2015

Price increases of $0.02 – 0.05/kilo have been reported at the farm level.  Reports also indicate a 100 ton carryover from the spring crop and a lower yield on the Autumn Crop that means higher costs.  Pricing will be adjusted by the end of November and any changes are expected to be minimal.

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