Prices continue to rise as supply cannot cover demand. One major supplier has no stock to offer at present. Reports still indicate no relief until May – July 2018.
Reports continue to advise of a major shortage of Eucalyptus Oil. Besides the two months of continuous rain in the growing regions, a major tax reform policy has hampered payment to the farmers. This has resulted in higher prices. No relief is immediately expected as demand stays firm but we continue to monitor the situation.
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.
We have reports that state demand for both has increased. With limited availability prices continue to be firm. We have also received a report that advised that rains in certain growing regions in Yunnan are currently hampering collection, adding more pressure on prices. Sentiment is that pricing will not ease this summer.
Reports continue to state that there are limited quantities of oil available. Prices for both items continue to rise.
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.
Reports before the Lunar New Year indicated that speculators were taking positions and demand was increasing. These factors, combined with bad weather in China’s Yunnan province lead us to believe that prices will stay firm until the new crop becomes available in July.
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.