In Q1 2025, RBD Palm Kernel Olein prices exhibited an overall upward trend, driven by multiple interrelated market dynamics. The price movement was influenced by persistently high palm kernel oil costs, which remained elevated due to constrained raw material availability and ongoing supply chain disruptions in key producing regions like Indonesia and Malaysia. Additionally, strong demand from the food, personal care, and oleochemical industries supported price stability despite global economic uncertainties.
The broader palm oil market faced downward pressure due to increased production and declining import volumes in key consumer markets such as India, where buyers shifted toward more cost-effective alternatives like soybean and sunflower oils. However, Indonesia’s expansion of its B40 biodiesel program absorbed a significant portion of palm oil output, limiting the surplus available for exports and preventing sharper price declines. Logistical challenges, including rising freight costs and port congestion, further contributed to price volatility. While RBD Palm Kernel Olein prices closely followed fluctuations in crude palm kernel oil, sustained industrial demand helped maintain a relatively firm price level throughout the quarter.