The availability and good quality of leaves from the myrtaceous trees, which are distilled to produce cajeput oil, continue to ensure the stability of supply of this product. Demand tends to be steady without disturbances. As a result, there are no fluctuations or variations in price of this product.
Cananga oil supply is showing a downward trend due to poor weather conditions and lower yields. But market demand continues to remain stable and firm. During December 2017 and January 2018, the crop has been exposed to heavy rains and strong winds in the cultivation region. As a result, this has acted as a negative factor discouraging farmers from collecting the flowers to produce the oil.
Indonesian citronella holds a dominant position in the market. Due to the lack of new sources, prices have tended to move in an upward direction, rising 15% in the past 5 months. There is a high demand, while supplies are constrained due to multiple factors, such as a large local demand for insecticide formulations, cleaning solutions, as well as citronella derivatives for export. Due to the wide availability of several qualities, buyers evaluate a lot of samples and don’t make decisions solely based on quoted prices. If this product is a crucial one for you, then we strongly suggest that you keep close tabs on Van Aroma, as an interesting project we are working on may drive the future of citronella.
Clove oil supply is under pressure in the current scenario. Poor weather conditions, i.e. unanticipated rains in Central and East Java continue to hinder production, creating crop scarcity, and of course, affecting market supply. Hoarding of the product has led to a seller’s market price. Speculation found in all clove products has resulted in price hikes. If supplies improve, we anticipate that prices will stabilise and move slightly downward by mid-February.
The pricing strategy for massoia bark oil will be competitive in future. It is anticipated that new producers will be entering the market with new and efficient technologies, resulting in a drastic quality improvement in product standards. Market dynamics are ripe for change for massoia bark oil.
No major changes in nutmeg oil, ensuring that regular supply in the market meets customer needs. Demand is also stable and no fluctuations are found in prices of the oil. However, as is true for all oils, vigilance is required on the customer front regarding the monitoring of inferior quality material flowing into the market.
Sulawesi: Current Sulawesi patchouli oil prices have gone up by 30% and are predicted to continue to show an upward trend in coming weeks. This proves that we have been very exhaustive with our product analysis, as stated in our March 2017 market report. Shifting of the predominant patchouli source from East Sulawesi to Central Sulawesi has slowed down supplies significantly. Anticipation of the new harvest will help improve the supply situation.
Sumatra: Current Sumatra patchouli oil prices are stable, as is the supply. Material from Sumatra remains a relatively superior product compared to patchouli oil from Sulawesi. The demand for the Sumatra product flourishes in the market for certain quality requirements, namely a higher patchouli alcohol content, more mature / better olfactory properties.
However, the increase in the Sulawesi patchouli price has brought it almost on a par with the Sumatra price. If the upward trend remains steady, it may generate new customers for Sumatra material.
Vetiver supplies show a downtrend trend due to complexities in cultivation and the lack of communication between growers and consumers. Prices are rising but at a diminishing rate. It is a difficult crop to cultivate making it unpopular among the farmers.
Garut continue to occupy a dominant position as the major region of cultivation. It comes under a product category where exporters create price variations. It is advisable that buyers evaluate samples and do not depend purely on cost considerations.
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