Markets firming up as demand picks up.
Markets firming up as demand picks up.
Price softening has stopped as demand picked up in recent weeks. Extra supply of eucalyptus oil ex-camphor and camphor oil. These crude oils are not only used to produce eucalyptol, the products of eucalyptus oil 80 are also accepted by European Customers. Most traders are cutting their stock and only buy what needed to cover current demands.
Prices are beginning to firm. Some reports indicate there was extended rains in the growing regions while most all report lack of demand kept farmers from harvesting and producing oil.
We have reports that prices trended up in mid-May. The growing region of Yunnan is entering the rainy season, so collection and production will be hampered. We expect prices at the farm level to increase.
We have a report that advises due to decreased demand, prices dropped last month. This has discouraged farmers from collecting, so prices are now trending up.
Weaker than expected demand has caused prices to soften.
Normally the major supply region of Yunnan has limited rainfall from February until April. Due to this, famers are prohibited from starting fires, as government concerned over forest fires, so they cannot distill any leaves. Reports indicate demand has recently increased, market prices have firmed. It is expected that there is room for prices to go higher.
With Chinese New Year celebrations now over, prices are continuing to firm. Lack of supply cited.
The easing of prices that occurred in early December has reversed. Stocks from December have been consumed. With the approach of Chinese New Year prices have firmed.
Early December brought some small relief on prices, but a substantial inquiry has caused prices to firm.
With new oil having entered the market prices have eased slightly. Reports indicate that demand is still off, and if demand spikes so will prices.
Prices are firm, with relief hoped for at the end of this year.
Heavy rains in the growing areas have kept volumes of oil down. One report we have states that there will be no new oil before November and that sellers have suspended offers. With demand traditionally heavy the end of autumn, it is expected that prices will continue to be firm.
Reports continue to advise Eucalyptus Oil is short. Prices for both items still firm.
The main producing areas in China are now in their rainy season. However the government has not yet lifted their ban on distilling crude in the forests (no fires allowed). Reports indicate there will not be any new oil until Nov/Dec 2018. Reports also indicate demand has been low, but any upswing will cause prices to jump.
Reports indicate that demand has eased and there has been a small short term easing of prices. With limited amount of oil due to arrive in August it is believed prices will be firm. One report states that the amount of new trees being planted is not sufficient to replace those that have been damaged. In the future products will continue to be tight. This report indicates prices will not return any time soon to “customary” levels.
Prices continue to climb as demand is outstripping availability. With a smaller harvest traditionally occurring in May through July, we do not foresee any price relief soon.
Prices continue to firm as available stocks dwindle.
Traditionally, prices firm after Chinese New Year and this year will not be an exception. Stocks are extremely limited.
Prices continue to rise as supply cannot cover current demand. The prolonged rains that occurred in November hampered collection as well as reducing oil content in leaves. Many suppliers are unable to offer while others who can, offer with prices good for that day only. This situation is not expected to ease until August or September.
New crude oil output is very slightly improved, however, oil distillers and brokers are speculating in the market. The price of crude oil is increasing every day and even with the higher prices, difficult to secure.
Traditionally new crude oil reaches the market in December, though by this time of the year crude oil is only trickling in and not at the volumes that would satisfy demand. Prices continue to be firm on the all-time high level and many users who are in need are buying.
Continued lack of supply, along with strong demand, has kept prices firming on a weekly basis. Bad weather in the growing regions will have an impact on what will be harvested for the traditional end of year supply.
Reports continue to state that there are limited quantities of oil available. Prices for both items continue to rise.
Offers are continuing to be made, although at high levels. Traditionally, there is a feeling that when new oil enters the market in July/August prices will soften. However, inventories of both crude and refined oil are low so buyers are waiting to see what will happen in this market.
One dealer has reported Eucalyptus production in 2015 was 8,500 tons, in 2016 only 7,000 tons. This dealer is also advising that in certain growing areas, access to the mountains has been banned by the government as a fire prevention method. Combining this with the bad weather earlier this year, production has been far less than usual. Prices are climbing on a weekly basis.
Prices continue to firm as supplies are being exhausted. With spring collection still two months away we do not see any easing of prices.
Crude Eucalyptus stocks are limited as snow and cold weather have hampered the collection of leaves during the normal period at the end of 2016. Prices continue to climb and we are aware of orders being defaulted. With continued reports of damaged trees, even though the next collections begin in May, we do not foresee any relief soon.
Continued reports of shortages in the growing region have led to higher prices for every subsequent inquiry.
Reports continue to state that farmers were unable to collect and process leaves to make oil. With a revised tax policy in place, prices have firmed and there doesn’t appear to be any relief until June/July 2017.
Reports that inclement weather has impeded production are again being circulated. Heavy rains and cold weather in the growing regions have caused prices to firm after a short interval of softening. Currency fluctuations may ease some of these price increases.
Indications are that by late November / early December a significant (?) quantity of oil will enter the market. The impact of this anticipated expansion of supply has been felt through a slight easing of prices. Reports state that farmers are selling stocks of crude oil now in anticipation of further reductions. Any spurt in demand before the end of the year will likely cut into these price reductions.
Reports continue to state that the supply is tight but new oil is expected to enter the market late November and early December.
No real relief here. Reports continue to state that oil is limited due to conditions in the main growing region of Yunnan.
New oil is beginning to enter the market as there are unsolicited offers. These new offers are still high as reports continue to say that oil is limited. We are being advised that prices will not ease until October.
We have received a report that a major Chinese trading company has secured the majority of oil produced during December and January. This company has been releasing limited amounts of Eucalyptus every month, keeping prices high. Both frost damage and agricultural labor currently being devoted to food crops add to the expectation that the market will be firm for the foreseeable future.
Prices continue to be firm as suppliers claim there is low carryover and limited availability. New Oil normally reaches the market in July but this year has been anything but normal. Prices are expected to remain firm through July/August at least.
Pricing on both products remains firm as it is still the dry season in Southern China. The diminished harvest caused by this year’s frost is worsening the limited availability that is common to April. May rains may help but prices will still likely stay firm until new oil is available in July.
First hand accounts of the eucalyptus trees in southern Yunnan describe severe damage caused by cold. Pictures show Eucalyptus trees either barren or covered only in dead, dried leaves. The exact extent of the damage and potential for recovery is unknown but we foresee an increase in price at least for the short term. If new Oil hits the market at its traditional time in July prices might begin to soften.
December reports of increasing demand and firming prices from one of our suppliers have turned out to be correct. Prices for Eucalyptus Oil and Eucalyptol have increased and availability is limited. It is believed that these firmer prices should drive up availability after the Chinese Lunar New Year.
Pricing for Eucalyptus oil has softened slightly as new Oil has entered the market. Reports from one supplier, however, claim that demand is increasing and pricing is firm. Eucalyptol pricing has also softened.
With new Oil entering the market, we hope to see quality issues on Eucalyptus Oil begin to diminish. With this influx we have seen a slight softening in pricing from origin. Historically, this softening continues through February but the last two years have deviated from that trend with rising prices. Eucalyptol continues to follow the price for Eucalyptus Oil.
Quality issues with Eucalyptus samples are becoming more common, possibly due to the issues caused by heavy rains during the summer months. With reportedly strong demand and little carryover, it’s possible that producers rushed production to get product to market more quickly. With new Oil expected to enter the market in December, we expect that pressures currently pushing up prices will dissipate.