Fatty Acid - C16 Price Trend

Fatty Acid C16 Prices (Q4 2021)

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.

Procurement Resource Database

Please Login or
Subscribe to explore
our dashboard.

Procurement Resource provides latest prices of Fatty Acid- C16. 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.

Chart Description: 

Procurement Resource provides prices of Fatty Acid- C16 for several regions around the globe, which are as follows:

  • North America
  • South America
  • Europe
  • Asia Pacific
  • Middle East
  • Africa

About Fatty Acid - C16:

Fatty Acid- C16 or palmitic acid is a saturated long-chain fatty acid with a 16-carbon backbone. Fatty Acid-C16 is found naturally in products like the palm oil and palm kernel oil. It is also found in food products like butter, cheese, milk, and meat.

Chemical Formula of Fatty Acid - C16:

  • C16H32O2

Synonyms:

  • Hexadecanoic acid
  • Palmitic acid
  • Cetylic acid

Molecular Weight:

  • 256.42 g/mol

Industrial Uses:

  • Commercial and industrial products.
  • Curing activator and polymer
  • Finishing agents
  • Fuels and fuel additives
  • Intermediates
  • Lubricants and lubricant additives
  • rubber component
  • Surface active agents
  • agricultural products (non-pesticidal)
  • arts, crafts, and hobby materials
  • Cleaning and furnishing care products
  • Industrial organic chemicals used in commercial and consumer products.
  • Laundry and dishwashing products
  • personal care products
  • Plastic and rubber products 
  • Rubber tires

Production Processes:

  • Production of Fatty Acid– C16 from Oil or Fat via Hydrolytic or Lipolytic Splitting.

In general, the production process of Fatty Acid involves hydrolytic or lipolytic splitting (reaction with water using high pressure and temperature or enzymes) of any oil or fat to finally obtain Fatty Acid as the product.  

Supplier Database: 

  • Eastman Chemical Company 
  • BASF SE
  • Oleon NV
  • Pacific Oleochemicals Sdn Bhd
  • Colgate-Palmolive Company
  • Longyan Zhuoyue New Energy Co. Ltd.

Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.

Methodology:

The displayed pricing data is derived through weighted average purchase price, including contract and spot transactions at the specified locations unless otherwise stated. The information provided comes from the compilation and processing of commercial data officially reported for each nation (i.e. government agencies, external trade bodies, and industry publications).

NEWSLETTER

Get latest News About Procurement Resource
Subscribe for news