Refined Sunflower Oil Price Trend and Forecast

Refined Sunflower Oil 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 First Half of 2024

During the first half of 2024, the refined sunflower oil market exhibited varied regional dynamics driven by shifting supply and demand factors. In Asia, particularly in India, sunflower oil imports surged due to lower prices and increased purchases by refiners, positioning sunflower oil as a more favorable option compared to other vegetable oils like palm oil. The market saw improved consumer spending, which supported a positive pricing trend despite challenges like freight rate hikes from geopolitical crises affecting imports from Ukraine and Russia.
 

Refined Sunflower Oil Price Chart

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Conversely, in Europe, sunflower oil prices hit their lowest levels early in the year due to ample supplies and minimal demand, exacerbated by the war in Ukraine and logistical challenges. Although prices were reduced, the expected demand surge did not materialize, leading to an overflow of inventories. However, volatility emerged in the second quarter as prices increased due to fluctuating demand, reduced inventory levels, and higher import costs from Ukraine.

In North America, the market experienced price fluctuations as abundant sunflower oil supplies, coupled with competitive pricing against palm oil, influenced consumer preferences. The region faced challenges such as limited inventories and stagnant import volumes, with domestic consumption leaning towards more affordable alternatives. Overall, the refined sunflower oil market in H1 2024 was characterized by regional disparities, with price trends reflecting a complex interplay of supply constraints, geopolitical tensions, and shifting consumer behaviors.

Analyst Insight

According to Procurement Resource, the price of Refined Sunflower Oil is estimated to more slightly towards the lower end of the pricing spectrum in the forthcoming quarters as the current avalanches on the market are expected to bore down in the upcoming months.
 

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.

Procurement Resource provides latest prices of Refined Sunflower 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.