For methyl palmitate (MP) producers, October 2025 tells a familiar story: volatility cloaked in stability. The CPO reference price in Indonesia rose to US $963.61/MT, up 0.93% month-on-month, while Malaysian futures averaged MYR 4,500/MT (~US $937/MT), a 3.2% year-on-year rise. Beneath this mild increase, refiners face higher conversion costs as RBD palm stearin now trades at US $855–US $870/MT, roughly US $20/MT higher than last month.

In such cycles, Tradeasia International demonstrates why scale matters. Operating across both palm trading and oleochemicals, the company leverages its network to secure stable feedstock even when volatility peaks. “Palm is never about price alone — it’s about precision of timing,” one manager notes — a philosophy that underpins many of Tradeasia’s long-term supply partnerships.

Economics Beneath the Surface

As reported by Palm Chemicals – Feedstock Bulletin, October 2025, stearin now accounts for up to 90% of total MP input costs, meaning even a US $10/MT increase adds US $8.60/MT to final MP costs. Meanwhile, India’s palm oil imports could drop to ~600,000 MT this month, while Malaysia’s stockpiles rose 7.2% to 2.36 million MT.

If CPO surpasses US $960/MT and stearin hits US $870/MT, producers may face another 2–3% feedstock cost increase before November. With a 0.86 MT conversion yield, the numbers underscore the importance of supply agility. Tradeasia’s structured procurement model exemplifies how integrated palm and oleochemical trade can buffer businesses from such cost swings.

In a market defined by precision, October’s data doesn’t merely track prices — it defines strategic advantage.

Sources:

  1. Palm Chemicals – Feedstock Bulletin, October 2025
     

  2. Bloomberg – Palm Oil Market Report, October 2025
     

  3. Malaysian Palm Oil Board (MPOB) – Monthly Statistics, September 2025