Fatty Acid - C16 Price Trend Analysis 2026: Historical Prices, Price Drivers, Market Insights, Latest News & Supply Demand Analysis

Asia

In spite of the fact that Indonesia and Malaysia produce relatively little palm oil, the Asian fatty acid market showed signs of strength as a result of strong palm oil feedstock performance on the world market. Logistical challenges, combined with rising fatty acid prices, kept trading offers in India stable.

The government's Dual Control Policy, combined with a lack of feedstock and output limits, pushed industrial units such as Jiangsu Shengtai (with an 80 KTPA capacity) and Deyuan Gaoke (with a 100 KTPA capacity) to temporarily close their doors.

Several production facilities were short on mid-cut fatty alcohols for a significant amount of the quarter, which increased the country's demand to import the product. Even though downstream buyers placed sufficient orders for the product in response to market optimism, demand from the detergent and personal care industries posed difficulties. Indian fatty acid prices were hovering around 3130 USD/MT in the last year. In December, prices in India were 3440 USD/MT on a FOB basis, while prices in China were 3440 USD/MT on a FOB basis.

Europe

Amid rising input costs that were unexpectedly high, the European fatty acid industry remained bullish in the fourth quarter of 2021. Because of a global shortage of palm oil feedstock and supply delays, as well as extraordinarily high energy prices, input costs continued to rise. In addition to port container constraints and movement limitations imposed as a result of the increasing number of Omicron cases in the region, spot trading activity was further impeded.

As a result of the recurrence of Covid instances, Germany had a considerable increase in soap and detergent consumption, which resulted in an increase in downstream industry inquiries for Fatty Acid and strengthened manufacturers' confidence in their ability to supply steady contract prices.

Prices rose to their highest levels of the year in December, when they closed at 4080 USD/MT FOB, as a result of heightened market limitations in the downstream sectors towards the conclusion of the third quarter. The demand for personal care products played a role in the rise in pricing patterns, as well as other factors.

North America

Increasing palm oil feedstock prices on the international market and constrained supply as a result of vessel delays from Asian countries helped to drive up the price of fatty acids in October to their highest level since 2007.

Additionally, the scarcity of trucks for delivering consignments to downstream businesses contributed to the manufacturers' disillusionment during the first few weeks of the quarter, on top of the high input costs. Demand fundamentals in the downstream personal care and detergent categories, on the other hand, were predicted to outpace supply.

Although palm oil prices experienced a minor decline in the last months of the year as a result of improved port movements and lower freight charges, the region's fatty acid prices were restrained in the North American region.

A decline in demand for fatty acid as a result of low downstream activity over the Christmas and New Year holidays boosted bearishness in December's last days, as seen by the collapse in fatty acid prices to 1760 USD/MT DEL in the last few days of December.