September
Market
Report

Opening Commentary


September 2017

With the Chinese government hosting a meeting of BRICS officials in Xiamen early this September, we have received more and more reports of factories suspending production.
Petitgrain

Benzyl
Alcohol

Benzyl Alcohol


September 2017

The major producer in China was forced to stop production due to tightening regulations. While now currently producing on a limited basis, available quantities are staying in the East, leaving the West short. This has caused stress on the western producers who run on campaigns and find it extremely difficult to alter production plans. Prices should be firm for some time.






Posted In
Synthetics

Lavender
Oils

Lavender Oils


September 2017

In Bulgaria, a late cold snap and then bad thunderstorms with hail have impacted the crop. Additionally, reports indicate the Russian crop was limited and sold out against advanced orders. Total production is down. Strong demand in the wake of these reports has also contributed pressure on the supply.  Prices have jumped substantially over last year’s.






Posted In
Florals

Orange
Oil
&
Terpenes

Orange Oil & Terpenes


September 2017

Reports continue to advise that the Brazilian crop will be quite large. Good weather conditions have led to a large amount of fruit becoming available. With reports of unfulfilled contracts that need to be satisfied, prices may not soften as much as some might hope. It appears that the major processors have not yet made any offers. Prices have eased slightly.






Posted In
Citrus

Garlic
Oil

Garlic Oil


September 2017

Production still limited due to environmental constraints. Spice market indicates that crop was good, but exceptionally strong demand has caused prices per kilo for bulbs to increase, rather than soften. Prices continue to firm and correct quality is still difficult to locate.






Posted In
Spices

Litsea
Cubeba
&
Natural
Citral

Litsea Cubeba & Natural Citral


September 2017

Rain in the growing regions has slowed harvesting but more importantly has had an impact on the quality of oil being produced. Citral content is reported at 60-62%, below the normal levels of 67-68%. This has forced producers to process more mass in order to meet specs. This in turn has resulted in prices increasing instead of softening. While still early in processing, reports indicate situation will not change.






Posted In
Herbs

Cassia
Oil

Cassia Oil


September 2017

With too much rain in Southern China, there are potential reports that much of the fall crop has rotted. With limited raw material available and higher labor costs, prices have increased. We would expect this to last until the spring crop.






Posted In
Spices

Maltol
and
Ethyl
Maltol

Maltol and Ethyl Maltol


September 2017

Production at one of the three producing factories in China is in the process of being expanded. This expansion is supposed to be completed by late Autumn. While there are quantities available, prices are still high, and probably won’t soften until this producer is ready with his expanded capacity. Circumstances and actual demand will determine what will happen to prices.






Posted In
Synthetics

Coriander
Seed
Oil

Coriander Seed Oil


September 2017

Prices for oil have dropped to a very low level. Reports indicate other crops were more profitable for farmers, so area planted for Coriander reduced by at least 50%, quite possibly by 67%. Prices for new crop seed continue to firm as it appears carryover positions on seeds were not properly stored and are unusable. We expect prices to rise as demand increases.






Posted In
Herbs

Nutmeg
Oil

Nutmeg Oil


September 2017

Also affected by rain, there appears to be a shortage of good quality oil at this time. There is a report that when prices dropped precipitously, several processors closed, unable to cover overheads. As a result prices continue to firm.






Posted In
Spices

Ginger
Oil

Ginger Oil


September 2017

When the government forced processors to switch to gas fired burners from coal, production reportedly switched to a different province. This caused prices to soften, albeit for a very short time. It did not take long before the government forced the change to take effect in that province also. With lack of dried roots available prices are firm.






Posted In
Spices

Cornmint
Oil
&
Menthol

Cornmint Oil & Menthol


September 2017

In a few short weeks prices for Mentha Arvensis and subsequently Menthol have increased 15-20%. Some of this may be blamed on the new Service Tax enacted; some may be blamed on the weakness of the US dollar against most currencies, some may be blamed on rains in the North impacting production and transportation. There are also reports that there has been very active speculation, due to concerns about BASF’s synthetic Menthol delays in Malaysia.

With this always being a complex and difficult market, there seems to be no confusion as to crop size; much less than expected. Many processors are advising situation will be volatile for some time and DMO prices can reach new highs.






Posted In
Mints