Palm Kernel Oil is an important vegetable oil used in many everyday products. It is commonly found in food items, personal care products like soaps and cosmetics, and in industrial applications such as oleochemicals. Because of its wide usage, even small changes in price can influence manufacturers, traders, and consumers. Understanding the Palm Kernel Oil Price Trend helps businesses plan purchases better and manage their costs more smoothly.
In the third quarter of 2025, the global Palm Kernel Oil market showed mixed behavior. Prices generally moved lower in many importing countries, while India stood out as the only major market where prices increased. Several factors influenced these movements, including freight costs, demand levels, substitute oils, and supply discipline from key producing countries.
During Q3 2025, the Palm Kernel Oil Price Trend was mostly downward across global markets. Many importing countries experienced modest price declines even though logistics costs increased. Freight rates rose sharply in regions like China, Japan, the UAE, and the USA, adding pressure to import costs.
Normally, higher freight costs would push prices upward. However, in this case, weak demand played a bigger role. Buyers were cautious and avoided building large inventories. Many companies focused on using existing stocks and managing purchases carefully. As a result, even after including higher shipping costs, the final prices of Palm Kernel Oil declined in most markets.
Another important factor was the availability of substitute oils. Buyers compared Palm Kernel Oil prices with other vegetable oils and often chose more competitive options. This limited demand growth and kept prices under pressure.
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India was the only major market where the Palm Kernel Oil Price Trend moved upward during Q3 2025. Strong demand from the food industry and personal care sector supported this increase. Manufacturers in these sectors continued buying actively, which kept demand firm.
In addition to solid consumption, sharply rising freight costs added to the price increase in India. Unlike other markets, buyers in India could not fully offset higher logistics costs due to steady demand. This resulted in higher landed prices and a positive price trend.
India’s example showed how strong end-use demand can outweigh other factors like global oversupply or weak international sentiment.
In contrast to India, markets such as China, Japan, the UAE, and the USA experienced declining Palm Kernel Oil prices. Even though freight rates increased significantly in these regions, demand remained weak.
Buyers in these countries adopted careful purchasing strategies. They managed inventories closely and avoided over-buying. Some importers delayed purchases, expecting prices to fall further. Others negotiated more aggressively to manage rising freight costs.
Because of these strategies, the Palm Kernel Oil Price Trend remained soft despite logistical challenges. The ability of buyers to adapt and control costs played a key role in shaping price movements.
Malaysia continued to act as a stabilizing force in the global Palm Kernel Oil market. As one of the leading producers, Malaysia’s pricing often sets the benchmark for international trade.
In Q3 2025, RBD Palm Kernel Oil prices in Malaysia fell slightly by about 1.10 percent compared to the previous quarter. Prices moved within a range of USD 1,700 to USD 1,895 per metric ton. This mild decline reflected weaker export demand and a competitive global market.
Despite the decline, Malaysian producers maintained controlled production and efficient refining operations. Domestic demand for oleochemicals and food processing remained firm, which helped prevent sharper price drops. This balanced approach shaped the local Palm Kernel Oil Price Trend.