- PFAD prices followed a firm trend in Q1’26, mainly supported by tighter palm-based feedstock availability, steady oleochemical demand, and higher shipping costs after Middle East route disruptions.
- Feedstock pressure came from crude palm kernel oil, where Malaysia’s production rose to 162,127 tonnes in March, but stocks declined to 339,687 tonnes, showing strong downstream absorption.
- Demand remained steady from oleochemicals, soaps, detergents, surfactants, personal care products, and biodiesel-related applications, especially across China and India.
PFAD prices in Asia remained firm during Q1’26, tracking strength in crude palm kernel oil and wider palm-based feedstock markets. Higher crude palm kernel oil production in Malaysia did not ease the market, as declining stocks showed that downstream offtake and export movement absorbed available supply. China and India continued sourcing palm-based derivatives for oleochemicals, detergents, soaps, personal care ingredients, surfactants, and confectionery fats, keeping procurement active. PFAD supply also remained linked to palm oil refining rates, while firm palm-kernel-linked inputs supported seller offers. The Strait of Hormuz disruption added pressure through higher freight, insurance, and fuel costs, raising landed costs for buyers dependent on imported material.