Palm Fatty Acid Distillate (PFAD) Price Trend and Forecast

PFAD Regional Price Overview

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

Palm Fatty Acid Distillate (PFAD) Price Trend for the First Half of 2024

In the first half of 2024, Palm Fatty Acid Distillate (PFAD), a by-product of refining crude palm oil, saw prices closely mirroring trends in the RBD Palm Oil market. The PFAD market experienced mixed price movements, heavily influenced by the dynamics in the palm oil sector, particularly in Asia, where countries like Indonesia play a dominant role in global exports. In Q1 2024, PFAD prices remained relatively stable with slight fluctuations, reflecting the broader palm oil market's reaction to eased export tariffs and normalized freight costs from the previous year.
 

Palm Fatty Acid Distillate (PFAD) Price Chart

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However, as Indonesia adjusted its export strategies to stabilize the domestic market, there was a minor upward push in PFAD prices during Q2. Despite these changes, the overall price movements remained within a narrow range, leading to subdued market sentiment for the majority of said period.

Analyst Insight

According to Procurement Resource, given the supply overturns in recent times, the market is likely to remain sufficiently supplied in the upcoming months; demand trajectory also appears steady; therefore, the prices are likely to remain consolidated going forward too.
 

Palm Fatty Acid Distillate (PFAD) Price Trend for the Second Half of 2023

Palm Fatty Acid Distillate, or PFAD, is obtained via the refining and distillation of crude palm oil, so their prices are often in close alliance with each other. During the second half of the year 2023, the Palm Fatty Acid Distillate prices were observed to be oscillating for the entire period.

The PFAD market began on moderate levels at the beginning of the third quarter in July of 2023. The supply and demand dynamics were largely equal. In the Asian region, the Chinese and Indian markets saw a normal influx of Palm Fatty Acid Distillate, while the demands also stayed stable. It was during the latter months of Q4 that the prices started to tumble a little, along with downstream demands. A slump in general international trade was primarily responsible for these fluctuations in the price trend.

Analyst Insight

According to Procurement Resource, looking at the macroeconomic factors Palm Fatty Acid Distillate price trends are expected to continue behaving in a similar manner in the coming months as well.
 

Palm Fatty Acid Distillate (PFAD) Price Trend for the First Half of 2023

The process of refining palm oil yields a byproduct known as Palm Fatty Acid Distillate (PFAD). PFAD is often a yellow to brown liquid or semi-solid that contains a combination of fatty acids, including palmitic and oleic acids. It is made by distilling crude palm oil to get rid of contaminants and free fatty acids, making the final product more stable and marketable, and thus, the market trend of palm oil dictates the trajectory of the Palm Fatty Acid Distillate (PFAD) price trend.

In the first half of 2023, the palm oil price trend struggled with the challenges for palm oil production in Malaysia. May witnessed a positive upturn in palm oil production, which increased inventories and raised the stockpiles of palm oil in the Asia-Pacific region.

However, the looming El Nino posed a threat to the production rates of palm oil. Despite May's production increase, the transition to El Nino disrupted the upward trend and resulted in a reduction in production and inventories. In addition to this, the Asia Pacific countries are also facing labor challenges since the pandemic, which further aided the existing problems of palm oil production and thus has, in turn, negatively impacted the price trend of PFAD.

Analyst Insight

According to Procurement Resource, the price of Palm Fatty Acid Distillate (PFAD) is expected to oscillate in the upcoming months as its growth trajectory is dependent on the performance of the palm oil market.

Procurement Resource provides latest prices of Palm Fatty Acid Distillate (PFAD). 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.