# Fatty acids: Trading

Prices are set FOB South-East Asia, and here is why

Source page: https://www.materialinsights.org/chemicals/fatty_acids/trading/

What this tab covers How it is bought and sold: buyers and sellers, price benchmarks and who publishes them, exchanges, contract types, traders, how Indian buyers price it, recent price points, and good sources to follow.

#### Who buys, and where

- China (largest importer)
- Netherlands and Europe
- India
- US

#### Who sells, and from where

- Indonesia (Dumai, Belawan, Batam)
- Malaysia (Port Klang, Pasir Gudang)
- Netherlands re-exports

#### Price benchmarks

| Benchmark | Publisher | Basis |
|---|---|---|
| **Stearic acid, lauric acid and distilled palm fatty acid assessments FOB South-East Asia** | ICIS / Argus / OPIS (indicative) | weekly |
| **Crude palm oil and palm kernel oil** | Bursa Malaysia; MPOB | daily |

#### Exchanges

| Venue | Contract | Notes |
|---|---|---|
| **Bursa Malaysia** | crude palm oil futures (FCPO) | used as a proxy hedge; no fatty acid futures |

#### Contract types

- Monthly or quarterly contracts with price formulas linked to palm or palm kernel oil
- Spot cargoes in bags, flexibags and bulk

#### Traders and distributors

- Producers sell direct; distributors Brenntag, IMCD (indicative)

#### How Indian buyers price it

- Import parity from Indonesia and Malaysia plus basic customs duty (indicative)
- Domestic producers price against imported palm and palm kernel oil

#### Recent price points

| Date | Price | Basis | Source |
|---|---|---|---|
| 2024 | **about $1,330/t** | world average export unit value, HS 382319 ($6.86 billion / 5.16 Mt) | UN Comtrade 2024 (derived) |
| 2024 | **about $1,625/t** | world average export unit value, HS 382311 stearic acid ($1.43 billion / 0.88 Mt) | UN Comtrade 2024 (derived) |
| 2024 | **about $984/t** | India's average import unit value, HS 382319 ($558 million / 567 kt) | UN Comtrade 2024 (derived) |

#### Good sources to follow
[MPOB Palm News](https://prestasisawit.mpob.gov.my/en/palmnews/news/9399)free newsletter · Malaysian Palm Oil Board

palm and oleochemical industry news
[Fedepalma International Conference papers](https://fedepalma.org/conferenciainternacional/wp-content/uploads/2025/08/M4_1_6-FNL-PPT-CONFERENCIA-INTERNACIONAL-2025_GlobalData_compressed.pdf)free research site · Fedepalma

palm and oleochemical market presentations
[Godrej Industries investor releases](https://godrejindustries.com/public/uploads/listing_compliance/BSENSEPRESSRELEASEJULY32025.pdf)free research site · Godrej Industries

Indian oleochemical capacity and strategy

## Other sections

- [Summary](https://www.materialinsights.org/chemicals/fatty_acids/index.md)
- [Overview](https://www.materialinsights.org/chemicals/fatty_acids/overview/index.md)
- [Correlation](https://www.materialinsights.org/chemicals/fatty_acids/correlation/index.md)
- [Production route](https://www.materialinsights.org/chemicals/fatty_acids/routes/index.md)
- [Production](https://www.materialinsights.org/chemicals/fatty_acids/production/index.md)
- [Feedstocks](https://www.materialinsights.org/chemicals/fatty_acids/feedstocks/index.md)
- [Cycles](https://www.materialinsights.org/chemicals/fatty_acids/cycles/index.md)
- [Movement](https://www.materialinsights.org/chemicals/fatty_acids/movement/index.md)
- [Regulation](https://www.materialinsights.org/chemicals/fatty_acids/regulation/index.md)
- [Characteristics](https://www.materialinsights.org/chemicals/fatty_acids/characteristics/index.md)
- [Emissions](https://www.materialinsights.org/chemicals/fatty_acids/emissions/index.md)
- [Relationships](https://www.materialinsights.org/chemicals/fatty_acids/links/index.md)