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The following report contains updates on the current trends in production and availability of the most in-demand Essential Oils and Raw Materials sourced from around the globe.

Lemongrass Oil (India)

In India, Lemongrass is harvested from July to November. The adverse climatic conditions that major producing centers experienced last year caused the previous production to be below the normal amount, yielding only 170 MT all over India. This year's harvest yield is projected to be higher than last year at around 200-300 MT. The demand is stable and the market is apparently balanced with no alarming shortage in supply; however, there has been no surplus in stock to help ease the prices.

Palmarosa Oil (India)

In India, Palmarosa is harvested once every 4 months, much like Lemongrass Oil. For the past 2 years, growing conditions have been poor, due to the poor prices in 2013 and 2014. This caused many farmers to switch from Palmarosa to other crops; hence, there has been a shortage of Palmarosa in the last 2 years, which as led to an increase in prices. The demand is stable and the cultivation has improved slightly, though not significantly, thus there may be a gradual decrease in prices; however, due to the growing climate being critical, the lack of rain in the growing regions may slow the pace of this decreasing trend.

Coriander Seed Oil

In India, Coriander Seed is harvested from December until June. The production is estimated to be close to half a million tons of seeds, the majority of which is used in seed form and a few hundred tons of which are distilled to produce essential oils. The quantity varies each year. The seeds are mainly used for culinary purposes to contribute flavour to food after being ground into a fine powder. At present, the prices are low and may stay in the current range for several more months, although this causes a disadvantage for farmers. Whether this will have a negative impact on next year's crop is yet to be determined.

Peppermint Japanese and Peppermint Supreme Oil

In India, Peppermint Japanese is harvested between the months of June and July. The current growing conditions are favorable; however, this year the plantation was less, leading to a shortage of the crop. In turn, this shortage has caused an increase in prices, but market conditions are good and there has been demand for 35000 to 40000 tons per year. The de-Mentholized Mint Oil / Mentha Arvensis would be 30% of the Mentha Oil production. This year's harvest yield is projected to be 28000 tons.

In India, Peppermint Supreme is harvested from May to June. The current growing conditions are not favorable, due to crop damage caused by insects and inadequate rainfall. This year's projected harvest yield is poor, estimated to be about 45% of last year's yield. There is good demand around the world for Peppermint Oil and market conditions are strong but volatile.

Eucalyptus Globulus Oil

In India, heavy rainfall has caused the harvest season for Eucalyptus Globulus to be postponed to the middle or end of November. Purchasing prices have increased due to high demand, insufficient supply, and the tax regulation imposed by the Tax Bureau in Yunnan, which is Eucalyptus Globulus' country of origin. This tax issue has also caused many factories to halt production for months. With the tight supply, the crude oil prices subsequently firmed up each week in the last month. Although it is currently crop season, the supply remains tight and the prices may rise further.

Macadamia Vegetable Oil

In Australia, the harvest season for Macadamia is between March and September. At the start of 2017, the Australian Macadamia crop was forecast to be 52000 Mt. During the season, however, this number was reduced several times, as the nut sizes were smaller than expected, resulting in reduced overall yield. The final harvest yield for 2017 is 46000 Mt, which was the same amount produced in 2015. The yield in 2016 was 45000Mt of nuts. The two main markets in which Macadamia Nuts are sold are the Kernel Market and the Chinese In-shell Market.

When Australian processors purchase nuts for the Kernel Market, the nuts are deshelled to produce the Kernels. The Kernels then become available to companies that press them to produce oils. When Chinese processors purchase nuts for the In-shell Market, they are shipped directly to China without prior deshelling. The consequence of this is that the kernels are prevented from entering the Kernel Market, thus reducing the number of kernels that are available to the oil pressing companies.

In the last 3 years, the percentage of Macadamia nuts being shipped to China from Australian has increased 41% from 12000Mt in 2015, 13000Mt in 2016 and 17000Mt in 2017. This means that the number of nuts available for processing in Australia has decreased 15% from 34000Mt in 2015, 32000Mt in 2016 and 29000Mt in 2017. Hence, despite the Australian crop remaining at similar levels for the last 3 years, the quantity of nuts available for processing has been reduced by 15%.

There is new demand for both unrefined Food Grade Macadamia Oil and Refined Cosmetic Grade Macadamia Oil. The increasing demand for high quality food oil in bulk supply is largely from Asia, as many Macadamia Oil users are dissatisfied with the low-quality food oil being supplied out of Africa, due to the fact that it often contains high levels of free fatty acids and has high peroxide values. Consequently, Asia is seeing an increased number of new Food Grade Macadamia Oil products.

Despite a decrease in the supply of Refined Cosmetic Grade Macadamia Oil, there is new demand for it; skin care and hair care companies around the world are starting to recognize the curative properties of Macadamia Oil and are launching several products with Macadamia Oil as a key base ingredient.

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