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.
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According to Procurement Resource, PFAD prices may remain firm if palm-based feedstock stocks stay tight and downstream buying remains steady. Any improvement in regional supply availability could limit further gains.
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| Product | Category | Region | Price | Last Updated Month |
| Palm Fatty Acid Distillate (PFAD) | Agriculture, Farming and Commodity | USA | USD 2191 | September 2025 |
Stay updated with the latest Palm Fatty Acid Distillate (PFAD) prices, historical data, and tailored regional analysis
Throughout 2025, PFAD prices moved within a shifting landscape shaped by changes in supply levels, refined output, and policy decisions in major producing and buying regions. At the beginning of the year, prices stayed fairly steady as producers worked with manageable inventories and buyers maintained routine purchasing. Market activity was calm, and most participants avoided aggressive moves, which helped keep early-year values stable.
As the year progressed, conditions gradually turned softer. Large stockpiles started to build up, especially in key hubs where production increased faster than consumption. This created steady downward pressure on PFAD, as available volumes were more than enough to meet regular demand. Trade sentiment also weakened when buyers adopted a wait-and-see approach, hoping for better opportunities as overall palm-related markets eased.
Mid-year, some temporary support appeared when certain regions saw stronger import interest for palm-based materials, but this did not last long. Buyers often already held comfortable stocks, and downstream sectors were slow to expand their requirements. As a result, PFAD values continued to drift lower. Later in the year, rising inventories and stable but unexciting export activity kept the market subdued. Even though some seasonal restocking took place, it was not strong enough to reverse the overall soft tone. By the end of 2025, PFAD prices reflected a year shaped by plentiful supply, cautious trading behaviour, and muted consumption growth.
PFAD or better known as palm fatty acid distillate is a by-product formed in the refining of palm oil for the food industry. PFAD appears as a light brown semi-solid substance at room temperature, which further melts into a brown liquid upon heating. PFAD primarily contains free fatty acids (FFA) (>80%) which include oleic, stearic, and palmitic components.
Production of food-grade oil from palm oil utilises distilling of palm oil as it improves the oil's taste, colour, odour, and shelf life. Thus, PFAD consists of degraded fats that are undesired and need to be removed to meet the food industry’s quality standards.
Soaps, Fatty Acids and Fatty Alcohols, Animal Feed, Hardened Oils, Candles, Fragrance Ingredients, Intermediates
Palm Fatty Acid Distillate
Wilmar International, PT TUNAS BARU LAMPUNG Tbk., Sarawak Oil Palms Berhad Group, Nuansa Kimia Sejati, PT, Future Prelude Sdn Bhd
CurrencyUS$ (Data can also be provided in local currency)
Supplier Database AvailabilityYes
Customization ScopeThe report can be customized as per the requirements of the customer
Post-Sale Analyst Support360-degree analyst support after report delivery
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.
In this process, PFAD is produced as the by-product in the refining of palm oil. Palm oil is refined into food-grade oil by the removal of degraded fats and free fatty acids. The distillation of palm oil to refine the oil and separate these unwanted and degraded fats produces food-grade palm oil, which gives PFAD as the residue.
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