Indonesian Essential Oil Market Updates September 2018

Indonesia

Cajeput Oil

Cajeput Oil Melaleuca cajuputi Harvest: All Year

Demand, especially in the local markets, is unusually high for cajeput. Production is stable and prices are improving at a healthy rate. The reason behind this seems to be the limited supplies of eucalyptus oil. Cajeput typically consists of 45 to 60% of 1.8 cineol/eucalyptol. This is the main component being sought after in cajeput. A similar effect can be seen in the sudden rise of demand for sweet basil leaf oil, bay leaf oil, tea tree oil, etc.

Market prices USD 30.00 /kilo
Cananga Oil

Cananga Oil Cananga odorata Harvest: June - August

Production is limited, and so is demand. There is not much news from the field or market fronts.

Market prices USD 145.00 /kilo
Citronella Oil

Citronella Oil Cymbopogon winterianus Harvest: October - February

Prices continue to rise on the back of excessive demand. Oil from the new production areas should start feeding into the market at the beginning of August. Prices are expected to stabilise at that point with even a possible decrease. Hopes are pinned on significant growth in Sulawesi’s share of the pie in the coming months.

Market prices USD 29.00 /kilo
Clove Oil

Clove Oil Eugenia caryophyllata Harvest: May - September

Raw material supply continues to be a challenge with intermittent rains. The focus of plantations has shifted to harvesting of clove buds. This should last from July till the end of September. With Van Aroma’s own production in Sulawesi, we now offer a stable supply of clove oils and derivatives.

Market prices USD 23.00-32.00 /kilo
Ginger Oil Fresh

Ginger Oil Fresh Zingiber officinale Harvest: January - May

Prices are flaring upwards because of an increase in prices of fresh ginger. This product, like clove buds, is driven extensively by the local herbal drink industry. Preparations are underway at Van Aroma to launch ginger CO2 shortly.

Market prices USD 126.00 /kilo
Mace Oil

Mace Oil Myristica fragrans Harvest: March - April, October - November

The market for mace oil is considerably smaller than nutmeg; and as such can withstand short-term interruptions in supply. Van Aroma maintains a steady supply and available stocks. Most distillers process nutmeg and mace together instead of separating them, since not too many buyers look for just mace oil.

Market prices USD 86.00 /kilo
Massoia Bark Oil

Massoia Bark Oil Cryptocaria massoia Harvest: September - May

The market is robust with strong and steady demand and competitive prices. Some new players have entered the fray and are backed by sophisticated technologies. This has resulted in better product. It has definitely affected market dynamics, and 2018 promises to throw up interesting developments for massoia bark oil.

Market prices USD 620.00 /kilo
Nutmeg Oil

Nutmeg Oil Myristica fragrans Houtt. Harvest: All Year

Demand as well as supply is stable at this time. No major upheavals are anticipated in the short term.

Market prices USD 65.00-75.00 /kilo
Patchouli Oil

Patchouli Oil Pogostemon cablin Harvest: All Year

Sulawesi: Patchouli production at source has been substantially lower due to a failed crop in many areas. Frequent attacks of the Budog disease have distressed plantations across Sulawesi. Affected plants are distilled but the yield is very low. There is uncertainty regarding the coming months. However, supplies are not expected to recover for the next two to three months, so a price escalation may be on the cards.

Market prices USD 38.00-43.00 /kilo

Sumatra: Supplies are minimal so prices persist in their upward trend. This is primarily because several farmers who were previously cultivating patchouli have shifted to other crops. Demand remains firm. There are not too many clients who are actively looking for sumatra Patchouli. Sulawesi continues to be the foremost producing area for patchouli.

 

Market prices USD 44.00-52.00 /kilo
Vetiver Oil

Vetiver Oil Vetiveria zizanioides Harvest: January - July

There is almost zero production at this time owing to it being the off-season. The next harvest will be around August. Vetiver production is largely dependent on a variety of factors like the Indonesian and Haitian productions and varying harvest seasons in the two main producing countries. This makes it difficult to predict prices. Van Aroma is gearing up to introduce vetiver CO2 extract very soon.

Market prices USD 440.00 /kilo