Refined Sunflower Oil Price Trend and Forecast

Regional Price Overview

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

Refined Sunflower Oil Price Trend for the Second Half of 2023

In the last quarters of 2023, India witnessed a significant decline in the import of edible oils, including palm, soybean, and sunflower, amounting to 3.64 million tonnes, marking a 23% drop compared to the previous year. This decline was attributed to various factors, such as lower output prospects, global economic challenges, and supply constraints.

The Solvent Extractors’ Association of India highlighted concerns regarding the potential price increase of edible oils, particularly refined sunflower oil, due to reduced availability, with major producers like Malaysia and Indonesia diverting edible oil for biodiesel production.

Despite lower import tariffs in the previous oil year, India remains heavily reliant on imports, with refined sunflower oil sourced primarily from Russia and Ukraine. The extension of lower import duty structures until March 2025 raised concerns within the industry, potentially impacting processing, and domestic oilseed prices adversely. Despite declining global prices, retail inflation in the cooking oil category, including refined sunflower oil, remained in the negative zone, highlighting the oscillating dynamics influencing India's edible oil market.

Analyst Insight

According to Procurement Resource, the price of Refined Sunflower Oil is estimated to nosedive in the forthcoming quarters as the reduction in import duty in India and rising reliance on imports will restrict the upward movement of refined sunflower oil prices.

Refined Sunflower Oil Price Trend for the First Half of 2023

Refined Sunflower Oil is a more processed form of sunflower oil with some extra filtration steps in the upstream processing. It is primarily used as an edible oil. The prices still closely follow the Sunflower oil prices.

For H1 2023, the sunflower-producing regions enjoyed good production yields, but this also meant an excess in supplies for refineries. The ample availability of sunflower crops eventually decreased the upstream cost support.

The other determining factors for Refined Sunflower Oil prices are the operational costs for refineries, transportation costs, energy prices, etc. Undoubtedly global economic inflation impacted these parameters in a detrimental manner, but situations still improved compared to the previous year’s disruptions. The energy and crude oil prices started normalizing as the supply chains were restored, freight prices also subsided, and more refineries were operational since the Chinese industrial lockdown got lifted.

All these factors decreased the upstream costs for Refined Sunflower Oil, impacting the market prices negatively. Even though the demand from the consuming sector maintained its momentum, prices fluctuated on the lower end of the price curve because of low upstream costs and ample availability.

Analyst insight

According to Procurement Resource, the price trend for Refined Sunflower Oil are expected to continue fluctuating on the lower end of the price curve since the inventories are still oversupplied and can easily cater to the current demands.

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