Castor Oil Price Trend and Forecast

Castor Oil Regional Price Overview

Get the latest insights on price movement and trend analysis of Castor Oil in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Castor Oil Price Trend for the Q3 of 2024

In the third quarter of 2024, the global castor oil market experienced dynamic price trends influenced by reduced production in India, the world’s largest producer, and exporter of castor oil, particularly in key growing regions. Despite an initial stability in prices due to strategic stock adjustments, the market began to feel the effects of decreased output as the quarter progressed.
 

Castor Oil Price Chart

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The North American and European markets, heavily reliant on Indian imports for various industries such as cosmetics, pharmaceuticals, and lubricants, faced challenges as the supply squeeze led to increased competition for available stocks. In Europe, the tightening of supplies forced many buyers to consider diversifying their sourcing strategies, looking to alternative suppliers or even substitutes for castor oil. Additionally, potential delays in shipments and longer lead times became more common, complicating inventory management and production planning for manufacturers. Meanwhile, the market saw downward pressure on prices, driven by favorable weather conditions in some regions and technological advancements that improved production yields and reduced costs.

However, this was countered by concerns about supply chain disruptions from India, which kept some upward pressure on prices in global markets. As castor oil demand remained high across industrial applications, particularly in cosmetics and lubricants, stakeholders began to take proactive measures, including securing long-term contracts and exploring product reformulations to mitigate risks.

The market participants also warned that while the immediate price effects were tempered, the ongoing production shortfall in India could lead to more pronounced fluctuations, making it essential for market participants to stay adaptable in the face of evolving conditions. Overall, the third quarter demonstrated a complex interplay of supply constraints and market demand, leaving the long-term price trajectory of castor oil uncertain but closely monitored by stakeholders.

Analyst Insight

According to procurement resources, the price of Castor Oil is thus the market's direction will likely depend on the production volumes of the commodity and the ease of trade of the same.
 

Castor Oil Price Trend for the Q2 of 2024

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Castor oil prices observed a varying trajectory during the second quarter of the year 2024 in the Indian market. During the first half of the quarter, the supply and demand outlooks exhibited more parity. Therefore, the prices were balanced, and the trend was relatively more stagnated.

In the second half of the quarter, however, the market sentiments started looking upward, driven by various factors. India accounts for major castor oil exports globally. The country saw an increased acreage for castor seeds this season as the monetary incentives and favorable soil and weather conditions prompted farmers to shift to castor seeds, especially for the oil crops.

However, as time progressed, the farmers started constricting the supplies on the market to push the prices up since the downstream demand for castor oil remained intact, especially from the international markets. Hence, the price graph exhibited both upward and downward movements. Initially, the prices slumped down a little when the supplies superseded demands. However, in the latter phase, the prices started inching up as the supply constraints started gripping the markets. In the Indian market, the average monthly prices went from about 1475 USD/MT in April’24 to around 1415 USD/MT in June’24.

Analyst Insight

According to Procurement Resource, as per the current market dynamics, the Castor Oil market projections are largely optimistic going forward for the coming months.
 

Castor Oil Price Trend for the Q1 of 2024

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Castor oil prices witnessed a vacillating price trend throughout the given period. Various geopolitical disturbances influenced the global markets differently. Some nations imported fewer stocks because of freight issues, while some export countries had excess stocks.

According to the Solvent Extractors Association of India (SEA), India is estimated to see an approximate 9% growth in castor seed production this year. This, amidst low international queries, pushed the prices down slightly in the domestic markets. In the Indian domestic markets, the monthly average prices went from about 1465 USD/MT (FOB) In Jan’24 to around 1460 USD/MT (FOB) in March’24. Overall, a lukewarm market performance was witnessed during the said span in the international castor oil markets.

Analyst Insight

According to Procurement Resource, the Castor Oil prices are likely to rise in the coming month. An incline in demands, especially from the beauty and healthcare industries, is expected.
 

Castor Oil Price Trend for the October - December of 2023

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Castor oil prices experienced a swift dip in the terminal quarter of the year 2023. Since castor oil is derived from castor seeds, the price trend are closely aligned for both. Castor crop requires less water to grow, so semi-arid regions like Gujrat and Rajasthan are apt for castor cultivation. At the global level, India and the Philippines are the major suppliers. China, Brazil, and Russia are also among the leading producers.

However, during the discussed span of Q4’23, the castor oil industry witnessed some fall in market demands as the inventories were being regularly supplied, resulting in overflow. In the Indian castor oil market, the monthly average prices went from around 1496 USD/MT (FOB, India) in October to about 1455 USD/MT in December’23, exhibiting a marginal decline of around 2%. Overall, borderline stagnancy was witnessed in the castor oil market during the said time period.

Analyst insight

According to Procurement Resource, the market analysis suggests positive projections for the Castor Oil market in the coming months. The demands from the skincare, healthcare, and food industries are expected to see a rise.
 

Castor Oil Price Trend for the July - September of 2023

Castor Oil, as the name suggests, is extracted by cold-pressing castor seeds. Because of its various health benefits, castor oil is widely used in various food, pharma, skincare, cosmetics, etc. industries. Since India is the biggest exporter of castor oil, the market behavior here is reflected in the global castor oil price graphs.

During the said period of the third quarter of the year 2023, the Indian market dynamics for castor oil were observed to be fairly stable and positive. Some occasional demand-driven fluctuations were seen but were limited to a very narrow range. The price of castor oil averaged around 1526 USD/MT (FOB, India) in September’23. Both domestic and offshore demands were flourishing. A healthy supply and demand equation was observed for castor oil throughout the said quarter.

Analyst Insight

According to Procurement Resource, the price trend for Castor Oil are likely to fluctuate in the coming months since the inventory stocks will start dominating the market outlook, given the current demand variations.

Procurement Resource provides latest prices of Castor Oil. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.