Asia
During Q1’26, crude palm kernel oil prices in Asia followed a firm trend, supported by tighter regional availability and steady downstream demand from China and India. Malaysia’s crude palm kernel oil production rose to 162,127 tonnes in March, but stocks declined to 339,687 tonnes, showing that downstream offtake and export movement absorbed higher output. China and India continued sourcing material for oleochemicals, surfactants, soaps, detergents, personal care products, and confectionery fats. Stronger palm-kernel-linked supply pressure and higher shipping costs after the Strait of Hormuz disruption supported market firmness.
Europe
During Q1’26, crude palm kernel oil prices in Europe remained firm as the region relied on imported lauric oils for oleochemical and personal care manufacturing. Demand from detergents, cosmetics, fatty acids, fatty alcohols, and specialty fats remained steady. Higher freight and insurance costs after the Iran war increased delivered costs, while limited supplier flexibility from Southeast Asia supported firm conditions.
North America
During Q1’26, crude palm kernel oil prices in North America showed a stable to firm trend, supported by import reliance and steady downstream consumption. Demand from surfactants, soaps, detergents, cosmetics, confectionery coatings, and specialty food fats remained consistent. Supply was exposed to Asian export flows, and higher shipping risk increased landed cost pressure for buyers.
Analyst Insight
According to Procurement Resource, crude palm kernel oil prices are expected to remain firm, supported by steady oleochemical demand and tight inventories, while improved palm kernel output may limit sharper gains.
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Asia
Asian crude palm kernel oil prices experienced notable volatility during the fourth quarter, with pricing movements closely tracking broader palm oil complex dynamics. Malaysian production maintained strong momentum throughout the period, with processing facilities operating at elevated capacity levels as palm oil output reached exceptional levels.
Indonesian supply similarly remained abundant as crude palm oil production grew substantially during the year, providing ample feedstock for palm kernel oil extraction. However, prices faced downward pressure as the quarter progressed, particularly during the final weeks when seasonal supply increases from Southeast Asian origins created oversupply conditions. Indian import demand for palm-derived products adjusted as refiners shifted purchasing strategies in response to changing price spreads between tropical oils and competing vegetable oils.
The weakening reflected broader market fundamentals as production increases outpaced immediate consumption requirements, with inventory levels rising across major producing regions. Supply-demand dynamics shifted as expectations for continued production growth in the upcoming period weighed on market sentiment through year-end.
Europe
European crude palm kernel oil markets mirrored Asian pricing trends while incorporating additional considerations related to sustainability compliance requirements. The postponement of the EU Deforestation Regulation created market segmentation, with EUDR-compliant material commanding substantial premiums over non-compliant supplies.
Prices followed the downward trajectory observed in Asian origins as abundant supply from Malaysia and Indonesia reached European destinations. Demand from oleochemical applications remained steady, though typical seasonal slowdown during winter months reduced industrial consumption. Compliance cost considerations influenced procurement decisions as buyers prepared for eventual regulation implementation while managing immediate supply requirements.
North America
North American markets reflected global pricing weakness as import values declined through the latter portion of the quarter. Refiners and industrial consumers adjusted purchasing strategies in response to expectations of ample global supply availability from Southeast Asian sources. The easing followed an earlier period of strength driven by seasonal pre-holiday procurement, with December bringing respite from previous upward momentum.
Food manufacturing, industrial processing, and biodiesel feedstock sectors maintained baseline consumption levels, though buyers demonstrated increased price sensitivity as global benchmarks softened. Trade flows adjusted as surplus supplies from Malaysia and Indonesia created favourable conditions for importers seeking competitive pricing.
Crude Palm Kernel Oil is known as an edible plant oil that is extracted from the kernel of the oil palm Elaeis guineensis. It should not be confused with the other two edible oils derived from palm fruits: palm oil, that is derived from the pulp of the oil palm fruit, and the coconut oil, that is derived from the kernel of the coconut.
Ghee, Butter, Ice-Cream, Chocolate, Dairy Products, Soap, Cream, Body Lotions, Detergents
Cargill, Incorporated, United Palm Oil Industry Public Company Limited, Wilmar International Ltd, Sime Darby Plantation Berhad, IOI Corporation Berhad, Musim Mas Holdings Pt. Ltd
CurrencyUS$ (Data can also be provided in local currency)
Supplier Database AvailabilityYes
Customization ScopeThe report can be customized as per the requirements of the customer
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Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.
In the mechanical extraction process, production of Crude Palm Kernel Oil involves three basic steps, which starts with kernel pre-treatment, then screw-pressing, and finally oil clarification. This method can be used and is suitable for both small- and large- capacity operations.
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