Palm Fatty Acid Distillate, commonly known as PFAD, is a widely used by-product of palm oil refining. Even though it may not be a household name, PFAD plays an important role in everyday industries. It is used in biodiesel production, animal feed, soaps, oleochemicals, and other industrial applications. Because of this wide usage, changes in PFAD prices can affect many supply chains at once. Understanding the PFAD Price Trend helps buyers, traders, and producers make better decisions and manage costs more effectively.
In the third quarter of 2025, the global PFAD market showed a mix of stability and gradual recovery. Prices moved within a moderate range rather than showing extreme ups and downs. While some regions experienced price rebounds, others faced mild pressure due to local demand issues and logistics costs. Overall, the quarter highlighted PFAD’s growing importance as a renewable and sustainable feedstock.
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During Q3 2025, the PFAD market remained relatively balanced. The PFAD Price Trend showed moderate fluctuations, generally staying within a range of about 3 to 6 percent. This kind of movement suggests a market that is adjusting rather than struggling.
One of the biggest influences on PFAD pricing during this period was the recovery of biodiesel production. After earlier slowdowns and maintenance shutdowns, biodiesel plants in several regions resumed operations. Since PFAD is a key raw material for biodiesel, this increase in production directly supported demand.
At the same time, oleochemical industries also showed improved activity. Products like soaps, detergents, and industrial chemicals rely on PFAD as a cost-effective input. As these industries picked up pace, PFAD demand improved steadily.
Although the global PFAD market showed a generally positive tone, regional differences were clearly visible. In regions such as Europe, Southeast Asia, China, and India, PFAD prices rebounded during the quarter. These markets benefited from stronger biodiesel demand and supportive renewable energy policies.
In contrast, South Korea experienced softer PFAD prices. Demand there remained weak, and high freight costs added extra pressure. This showed that while global trends matter, local conditions still play a big role in shaping the PFAD Price Trend.
Such regional variation is common in commodity markets. Differences in policy, energy demand, shipping costs, and industrial activity can all cause prices to move differently from one country to another.
Malaysia remained a central player in the PFAD market during Q3 2025. The PFAD Price Trend in Malaysia showed a clear rebound, with prices rising by around 3.79 percent over the quarter. Prices ranged roughly between USD 884 and USD 1,040 per metric ton.
September was especially strong. PFAD prices jumped sharply during that month due to the restart of biodiesel plants after maintenance shutdowns. Once these facilities resumed operations, PFAD demand increased quickly, pushing prices higher.
Malaysian producers also worked carefully to manage supply. They balanced production targets with sustainability requirements, which are becoming more important in global trade. This careful planning helped avoid oversupply while still meeting growing demand.
Indonesia, another major palm oil producer, followed a similar path. Producers focused on optimizing supply while responding to rising interest in renewable energy. Export markets in Europe and Southeast Asia became more active again, supported by government policies encouraging biofuel usage.
China and India also contributed to improved market sentiment. These countries increased imports to support their industrial and energy needs. As demand strengthened in these regions, the global PFAD Price Trend gained support.
However, exporters remained cautious. While demand improved, they were aware that sudden changes in policy or energy prices could affect future consumption.