Asia
In the first half of 2025, the Asia-Pacific market for Fatty Acid C-12 showed moderate volatility. Prices started the year on a firmer note due to tight supplies of key feedstocks like coconut and palm kernel oil. Weather disruptions linked to El Niño and pest-related crop issues in major producing countries like Indonesia and the Philippines reduced the availability of raw materials, pushing up early Q1 costs.
However, February saw some easing as domestic inventories remained high and downstream demand from oleochemicals and food industries softened. By March, prices rebounded again as global demand strengthened and supply issues persisted. Throughout H1, trading remained cautious, with buyers largely adopting a wait-and-watch approach amid uneven consumption trends and price uncertainty.
Europe
The European market for Fatty Acid C-12 faced a complex set of pressures in H1’25. Prices were generally steady in Q1, supported by tight feedstock availability and subdued output of animal fats due to lower slaughter activity. The EU’s delay of deforestation regulations provided temporary relief in palm oil sourcing, but sustainability concerns kept supply tight. Biofuel blending mandates and SAF production obligations sustained demand, especially in the oleochemical and energy sectors. In Q2, despite improving logistics, a weak euro increased import costs, maintaining firm price sentiment. Market participants were cautious, avoiding bulk purchases and instead securing supplies through short-term contracts to manage volatility.
North America
In North America, Fatty Acid C-12 prices in H1’25 reflected a mixed pattern. Early in Q1, prices were elevated due to limited coconut oil supply and firm demand from food, personal care, and industrial users. Logistical constraints and delayed shipments from Asia added to cost pressures. As Q2 began, improved port operations and stable freight rates helped ease some of the supply bottlenecks. However, inconsistent demand from non-essential manufacturing kept prices from rising sharply. By late H1, the market stabilized, supported by steady end-user requirements and more balanced supply chains, though raw material costs remained a concern.