De Montage: Most natural spices are stronger, only one is weak

The global fragrance company De Monchy Aromatics released a market report in May, making an exclusive analysis of the market conditions of more than ten kinds of natural and synthetic fragrances around the world.

 COVID-19 epidemic impacts supply in India and China

 Demonge pointed out in the report that under the influence of the new crown, companies from all countries have to adjust their operations to abide by the rules for maintaining social distance. The overall price of raw materials has risen, and global cargo transportation services are under great pressure.

After the closure of India, all international air and express services were suspended. Although maritime transportation continues, the delay is very serious due to the high demand for port transportation. The factory produces at a significantly reduced capacity, so it is predicted that even if the freight service is restored, the shortage of raw materials will continue.

The Chinese factory resumed production, but air transportation was severely restricted because of the priority to be given to personal protective equipment. Freight rates have risen sharply, and exports of goods have been delayed for a long time.

The report is divided into two parts: essential oils, extracts, and aromatic chemicals. Let us first look at the situation of nearly 10 kinds of essential oils.

China's star anise oil: reduced supply, without hindering prices

In the spice market, the price of star anise fruit is still very high, and the number of raw materials available for processing is limited. China's blockade measures continued until mid-March, and many processors failed to process star anise leaves during the peak season, resulting in very few leaf oils on the market and unable to make up for the lack of fruit oils. At present, the reduction in supply has not affected prices, as demand remains weak.

South Africa Bupleurum oil: Air transportation is restricted, and it is difficult for producers to export

Bupleurum oil is extremely tight because supply cannot meet current global demand. South Africa’s outbound cargo transportation is severely restricted, and air transportation should be given priority to food and medical supplies. Until the restrictions are lifted, many in-stock producers cannot export products.

Artemisia oil: prices are expected to continue to rise

This year's harvest has fallen sharply, and high-quality Artemisia fragrans oil is scarce. Coupled with India's new crown blockade measures, the price of Artemisia fragrans oil has risen sharply from last year's low level. Prices are expected to continue to rise.

Eucalyptus oil: Crazy panic buying leads to market turmoil

The market is very unstable; during the prolonged blockade period, China's eucalyptus oil was wildly snapped up, and demand increased further, pushing up prices in February and March. By the end of March, global demand was declining, and prices fell accordingly, and bottomed out in April. Currently, prices are starting to rise, and if demand increases, it is expected to rise further.

Lemongrass oil in India: no one harvests it, very little supply

At present, because of the epidemic, no one in India has begun to harvest lemongrass, resulting in a small supply of lemongrass oil on the market. Coupled with high demand, prices suddenly rose. The increased pressure on supply is likely to continue even after harvesting begins, because lemongrass oil is in great demand as a source of natural citral.

Lime oil: prices may rise again this year

The market remains strong and prices are expected to continue to rise during the year.

Litsea cubeba oil/EU natural citral: prices may rise again before August

Recently, the market demand for Citral EU Natural has soared, believed to be due to increased demand from beverage manufacturers. Prices have risen significantly and China's Litsea Cubeba oil stocks are very low.

Orange oil: rises with d-limonene

The market for orange oil turned around at the end of 2019 and is still strong. Oranges and d-limonene are rising at the same rate, and market demand for both is strong.

Australian tea tree essential oil: demand for cleaning products is high, prices jump

Not surprisingly, the market demand for tea tree essential oils has risen significantly because hand sanitizers and other cleaning products require this ingredient. Supply is very scarce and prices have jumped. Before the August harvest season, there was almost no production. In the coming months, as supply decreases, prices are predicted to continue to rise.