Citral Price Trend and Forecast

Regional Price Overview

Get the latest insights on price movement and trend analysis of Citral in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

For the First Half of 2022

Asia

Natural citral is extracted from lemongrass. The prices of lemongrass averaged 2.2-2.4 USD/kg globally. India and China emerged as the biggest exporters of the commodity in the current year. Due to the increased demand for essential oils, the prices of citral are also rising globally.

Synthetic citral can be manufactured using isobutene and methanol. Due to the soaring prices of primary feedstocks, the price trends of the commodity tipped towards the higher side of the scale. In the said quarter, the isobutene averaged 12800 RMB/ton in Shandong.

For the Fourth Quarter of 2021

Asia

China's production for the liquid will expand at a pace of 7% per year due to continued investment and technical improvements in the project. The production is expected to hit 17,600 MT by 2022. The need for citral in the downstream sector is increasing as its downstream industry continues to grow. The demand in China is expected to reach 23,200 MT by 2022.

For First, Second and Third Quarters of 2021

Asia

Wanhua Chemical declared their intention to develop citral, a crucial feedstock for Vitamin A, on January 27, 2021. This new source followed Xinfa's declaration earlier in the year that it would begin producing and supplying vitamin A in the second half of 2019. Despite their small capacity, both projects demonstrated a consistent pattern of market tension being relieved.

As a result, the price of vitamin A was expected to decrease. In May, the industry faced a supply deficit of the liquid as Malaysian enterprises remain closed to prevent the spread of COVID. The Malaysian BASF PETRONAS factory produces citral and citronellol at its integrated chemical complex in Kuantan.

North America

Manufacturers in the citral industry are expanding their production capacities in cosmetics, pharmaceutical items, and perfumes, in addition to detergents and cleaners, to diversify their revenue sources. To acquire a competitive advantage over other producers, they are learning alternative manufacturing technologies such as steam refining, solvent extraction, ultrasonication, and supercritical fluid extraction, among others.

For the Year 2020

Asia

High demand of beta pinene and low availability in the Indian market in H1-20 resulted in increased prices. The high prices were also supported by the supply chain disruptions caused by COVID-19. The deteriorating India-China relations further strained the prices, and the imports went down towards the end of 2020.

The prices for turpentine (feedstock for Beta Pinene) remained stable after increasing in August-September 2019 due to excess supply in the global market. The prices in India increased in H1-20 due to increased freight costs within the country and restricted imports. Citral prices were stable as the demand had been slow-stable for H1-20. There were no sudden fluctuations expected in H2-20. The market price of the liquid in India averaged at 6346 USD/MT.

North America

Citral prices in the first quarter of the year started at a low of 7512 USD/MT in January, which then rose to 8609 USD/MT in February. By March 2020, the price had risen to 9003 USD/MT and remained stable for the rest of the year. It is a key ingredient in making Vitamin A supplements. Citral-containing essential oils are used to treat infections of the skin and mucosa. Its antibacterial action in the treatment of various drugs had been thoroughly proven in the literature.

Its natural components, on the other hand, are volatile and unstable. As a result, citral's therapeutic effects tend to outweigh its drawbacks. Nanocarrier technologies are being researched by companies in this sector to induce natural citral molecules in essential oils. Manufacturers are unlocking growth prospects in medicine delivery systems with the help of nanocarriers.

Procurement Resource provides latest prices of Citral. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.