Reports continue to advise that there is very little stock left. With new season oil not available before July/August, we do not foresee any chance prices will ease any time soon.
Reports continue to state that current crop will be small, hampered by rain. They also advise that factories are not willing to negotiate, believing prices will continue to firm.
With the crop season over, and prices continuing to firm, reports indicate factories not willing to speculate. It is expected that prices will eventually stabilize in the next few months.
With heavy rains during the growing season it is no surprise that this year’s total production was less than last years. Prices have stayed firm but any change in demand will cause prices to rise.
With the Chinese Crop seriously impacted by heavy rainfall prices continue to firm. As a reference, 2015 China’s production was 2,300 tons, 2016, 1,500 tons and 2017 1,200 tons. The estimate for 2018, is lower than 2017. Indonesia, suffering heavy rains also, has had limited availability. Prices are firm.
Poor crop in China, strong demand = high prices.
Here too, rains have lessened Chinese crop. Prices are firm and reports indicate that they will continue to rise.
With offers from China non-existent, pressure on Indonesian has seen prices climb. Availability is still an issue.
Rain here in the growing regions keeping production down. Processers in China have imported oil from Indonesia in order to meet demand both at home and overseas. This has kept pricing firm and availability is an issue.
Demand for Citronella is high with new oil to be available from July onwards. Pricing should be firm until then.
As mentioned above, prolonged heavy rains kept output down. One report indicates total produced in 2017 was only 40% of 2016’s total and only 25% of 2015’s. Besides the rains, low prices have discouraged farmers. With the extraordinary demand arising this year, one would expect that there will be an overabundance in 2019, starting the... Read more »
Pricing from both China and Indonesia is firm as farmer disinterest and rains have kept production down. With crops in China due now, reports indicate that current rains in growing regions could add more pressure on prices.
Prices from both Indonesia and China are still firm as rain has kept harvesting and therefore production down. Prices for Citronellal ex-Citronella and Geraniol ex-Citronella have subsequently firmed.
Hydroxycitronellal is an intensely floral ingredient that has experienced growing popularity in recent years. As a number of lily-like ingredients are being phased out for regulatory reasons, Hydroxycitronellal has been substituted as an impactful mid range white floral in fragrances. Hydroxycitronellal also finds some use in floral flavors and in some berry profiles.
Pricing for both Indonesian and Chinese oils continues to firm. With the long rainy season in Indonesia and bad weather in China, the February/March crops were off. Next crop time in China begins in July and the dry season in Indonesia should start in May.
There have been heavy rains in Indonesia and continued rain in the growing regions in Southern China at the end of 2016. The Chinese crop is reportedly off by 15-20% and internal demand in Indonesia is strong. This has translated into higher prices as availability is becoming limited.
With reports that there is no carryover in the hands of factories prices continue to firm. There is a limited arrival of oil in the market in April so prices are expected to continue to firm.
Chinese production in 2016 was approximately two thirds of that of 2015. This was due to a combination of low prices discouraging farmers from distilling, environmental protection policies, and bad weather. With Indonesia acting as an alternative to China in 2016, supply was stable. Now with steady rains, their supply has become limited. As a... Read more »
Production was reduced in November. Prices have firmed and are expected to increase further.
While the 2016 crop in China was small, Indonesia kept prices stable. With strong demand reported, prices for Citronella Oil have started to firm.
A previous report indicated that farmers had focused on rubber cultivation, devoting less time to Citronella. Prices have remained stable due to large amounts of oil being available from Indonesia.
Rain in the growing region of Yunnan has curtailed production. Crop season begins in July, so we do not foresee any disruption as Indonesian Oil is readily available.
This winter’s cold weather in Southern China killed the grasses there, greatly diminishing the Spring crop. With the new crop not available until August/September prices are expected to firm.
Last year’s surge in internal usage and heavy rains have pushed prices up above historic highs. No relief is expected in the near future.
Due to several years of relatively low prices, farmers were reluctant to distill this year. With the current shortage of synthetic Hydroxycitronellal and Citronellal, and heavy rains keeping production of Citronella oil extremely low, Citriodora demand has far outstripped current supply. Reports indicate prices will continue to climb until new crop oil becomes available late... Read more »
With an unexpected shutdown of a major producer and increased quantities allocated to synthetic Menthol production, Hydroxycitronellal, Citronellyl Acetate, Citronellol, and other derivatives have been affected. As major users try to cover their needs we would expect prices to firm.