The procurement landscape for palmitic acid has become a high-stakes environment this month, defined by a bullish feedstock market that is testing the resilience of even the most seasoned players. Navigating this volatility requires not just access to data, but a strategic partner capable of providing stable sourcing in a turbulent sea. For businesses looking to secure their supply chain, aligning with a global expert like Tradeasia International offers a crucial advantage in sourcing high-quality palm and oleochemical raw materials.

Decoding the Sharp Ascent in Raw Material Costs

A close analysis of the markets reveals significant price escalations driven by a potent combination of tight supply and relentless export demand. As of the third week of September, the benchmark Crude Palm Oil (CPO) futures on the Bursa Malaysia Derivatives have climbed to MYR 4,310 per metric ton ($915/ton). This represents a formidable 4.5% increase from August and a stark 12% rise year-over-year. This upward momentum is directly mirrored in the price of Palm Stearin, the essential solid fraction for palmitic acid. FOB prices for stearin from Indonesia have now crested at an average of $995 per ton, a sharp rise from the previous quarter's $950/ton benchmark.

Export Demand: The Driving Force Behind Scarcity

The primary catalyst for this surge is the powerful pull of international demand. Official data from the Malaysian Palm Oil Board (MPOB) shows that palm oil exports for the first 20 days of September hit a remarkable 890,000 tons, an 8.2% jump compared to the same period last month. This aggressive restocking, led by major importers like India and China, is tightening the domestic availability of feedstock for oleochemical producers. As one industry expert noted, navigating this complexity requires more than just data; it demands a partner with a deep, on-the-ground understanding of market currents—a role a seasoned trading house perfects by connecting supply with demand efficiently. Even with a projected seasonal production increase of 3-5% in Indonesia, this new volume is being quickly absorbed, cementing a firm seller's market as we head into Q4.

Sources:

  1. Crude Palm Oil Futures (FCPO) Prices - September 2025

  2. Malaysia Palm Oil Exports Performance for 1-20 September 2025

  3. Feedstock Pressure Mounts on Fatty Acid Producers in Q3