The global fragrance company De Monchy Aromatics released its July market report, which made an exclusive analysis of the market conditions of more than ten kinds of natural and synthetic fragrances around the world. Today, look at the situation of more than ten kinds of natural essential oils and extracts.
Chinese star ANISE OIL: high demand and firm prices
Due to the high price of star anise in the spice market and the limited quantity available for processing, the tight supply of star anise oil in China has continued for several months. The amount of star anise leaf oil entering the market has decreased and cannot compensate for the insufficient supply of fruit oil. These factors, together with the surge in demand, have caused the price of star anise oil to be firm.
Bupleurum oil: very little production activity and extremely tight supply
The Bupleurum oil market is still extremely out of stock, and currently there is very little production activity.
Coriander oil in Russia: inventory is low, prices may rise again
Affected by the new crown epidemic, the market is concerned that the long-term supply of coriander oil in Russia is not guaranteed, resulting in higher demand and higher prices for the product in the past few months. The price of coriander seeds is currently very high, further inhibiting the production of coriander oil.
The harvest season will begin at the end of August, so the new coriander oil will not be available until September. Up to now, inventory is still at a low level, which may cause prices to rise further.
Roman chamomile oil: production may decline
This spring, the British climate is extremely dry, which has a detrimental effect on the growth of chamomile. Chamomile has completely dried up in some areas, and the flower buds in other areas have now stopped developing because of the lack of large-scale rainfall in recent times that cannot penetrate the land.
The yield of chamomile will depend on the rainfall this month. Its planting area has increased over the past few years, and a certain amount of stubble crops will be left in 2019, which should ease the potential decline in output this year.
Artemisia oleifera oil: very little supply at origin, prices will continue to rise
The supply of high-quality Artemisia selengensis oil from the origin is scarce, and the market remains tight. Prices have risen steadily and are expected to continue in the coming months.
Eucalyptus Oil: shortage of raw materials, weak prices
In April and May of this year, the price of primary eucalyptus oil reached a multi-year low, thus inhibiting production. In addition, the government has adopted relevant restrictive measures to prevent forest fires, which means that farmers cannot go to the mountains to collect raw materials for distillation, resulting in an increasingly scarce supply of raw materials. Recently, with the turmoil in global demand, the eucalyptus oil market is very unstable. The current price is weak, but it is not expected to decline further from the current level. If demand rebounds, it is expected to rebound.
Lemongrass oil in India: India has no exports, prices will hit a high point again
In the past three or four months, India has not exported any lemongrass oil, so demand has accumulated, causing prices to jump.
The epidemic blockade means that harvesting activities cannot be carried out, and as the rainy season approaches, the industry faces greater challenges. The price is expected to hit the highs that appeared in early 2019 soon.
Argentine lemon oil: lemon production is expected to decline 11%, prices have bottomed out
The lemon harvest season lasts from May to June, and production is expected to decline by 11% due to less rain at the beginning of the year. Lemon oil prices have recovered from the extremely low level a few months ago and are expected to rise further.
Mexican Lime Oil: Prices soared at the beginning of the year and are now stable
Last winter's crop harvest was short, and the production of lime fruit decreased, leading to a surge in the price of Mexican lime oil at the beginning of the year. In the following months, its price remained stable. The peak season has already begun and ends in September and October. It is not clear how the new crown epidemic will affect the Mexican lime oil market in the coming months.
Litsea cubeba oil/EU natural citral: prices will continue to increase until August
Starting in April, the market demand for Citral EU Natural has soared, believed to be due to increased demand from beverage manufacturers. This resulted in a significant price increase and reduced inventory. There will not be any new raw materials on the market until the August harvest season begins. Therefore, it is expected that the EU natural citral will further increase prices.
Orange oil: orange production declines, orange oil market is firm
Brazil's 2020/21 orange harvest season starts this month. Due to adverse weather conditions and single tree fruit volume, this year's output is expected to decline by more than 20%. During the epidemic, the consumption of vitamin C products increased, making the price of orange juice increasingly firm.
Brazilian processors have raised the prices of orange oil and d-limonene, and the market is still strong.
Indian peppermint oil: wild mint production expected to increase, spicy mint production reduced
The harvest of wild mint crops in India is in progress, and due to a good stubble crop left in 2019, this year's output is expected to increase by 10%-15%. The harvest of spicy mint is over. It is reported that the yield is lower than normal due to the limited crops. The price of peppermint oil in India is currently stable.
Bulgarian rose oil: the oil content of the rose is reduced, the oil rate is cut
Bulgaria's rose harvesting activities in 2020 began in mid-May and ended in June. The yield was initially expected to be good, but because of the cold climate, (many) rose bushes did not bloom. Due to the withering of petals at the end of harvest and the reduction in oil content, the oil yield this year has dropped by 40%-50%.
Australian tea tree essential oil: reduced demand and lower prices in later stages of the outbreak
In April, the market demand for tea tree essential oils skyrocketed, and producers increased their production substantially to meet the manufacturing needs of hand sanitizers and other cleaning products during the outbreak. After April, demand gradually decreased and prices fell slightly.
