Oleic acid

Oleic Acid: Recent Commodity Market Intelligence Report

I. Price Dynamics
1. Benchmark Price: As of July 6, 2026, the Business Society’s benchmark price for oleic acid stood at RMB 8,000.00 per ton—unchanged from the beginning of the month and positioned at a mid-to-lower level within the annual historical range.
2. Regional Quotations:
- On July 1, 2026, Shandong Hongyang Chemical Co., Ltd. quoted RMB 9,000/ton for domestic premium-grade oleic acid;
- Shandong Beilu Hengsheng Chemical Co., Ltd. quoted RMB 10,200/ton;
- Guangzhou Zhanen Chemical Co., Ltd. quoted RMB 11,400/ton for domestic oleic acid (99% purity); its Xipu brand was priced at RMB 11,500/ton;
- Shanghai Shijian Industrial Co., Ltd. quoted RMB 12,500/ton;
- Shandong Fushengyong Trading Co., Ltd. quoted RMB 7,650/ton for domestic oleic acid (≥95% purity).

II. Supply and Demand
1. Supply Side:
- Global industrial oleic acid production continues to expand, with China, Southeast Asia, and India emerging as the fastest-growing production regions due to their raw material advantages and cost competitiveness. In 2024, China accounted for 22% of global output; this share is projected to rise to 28% by 2031.
- Domestic high-purity oleic acid producers maintain stable plant utilization rates; however, certain regions still rely on imports—particularly for high-end products.
2. Demand Side:
- Industrial oleic acid is widely applied in plastics, detergents, mineral processing, paints, and other sectors, with demand growing steadily. The plastics industry remains the largest application segment, commanding a 32% market share in 2024; its compound annual growth rate (CAGR) is forecast at 4.1% from 2025 to 2031.
- Demand for high-purity oleic acid in pharmaceuticals, cosmetics, and other premium end-use sectors is continuously rising, driving market evolution toward higher performance, greener production, and customized solutions.

III. Cost and Profitability
1. Raw Material Costs: Primary feedstocks—including vegetable oils and tall oil—account for up to 93.59% of total production costs. The Codex Alimentarius Commission’s proposed revision of edible oil standards will likely spur upstream raw material quality upgrades, potentially impacting oleic acid production costs.
2. Industry Profitability: The global industrial oleic acid sector maintains an overall gross margin of 6.69%, reflecting the inherent stability and resilience characteristic of basic chemical raw material industries. Gross margins for premium products exceed the industry average.

IV. Competitive Landscape
1. Global Competition:
- Tier 1: International leaders (e.g., Musim Mas, KLK OLEO, Eastman) collectively hold ~45% of global market share, leveraging strengths in premium product portfolios and extensive global distribution networks.
- Tier 2: Regional leaders (e.g., Ecogreen Oleochemicals, Emery Oleochemicals, Zanyu Technology) focus on specific regional markets or niche applications, representing ~35% of total global market share.
- Tier 3: Small- and medium-sized regional chemical plants serve the mid-to-lower-tier segments, resulting in a relatively fragmented competitive landscape.
2. Domestic Market:
- China’s oleic acid market exhibits pronounced supply-demand imbalance, with domestic demand significantly exceeding output—leading to substantial reliance on imports, especially for high-end grades.
- Domestic enterprises (e.g., Hangzhou Yayu Oleic Acid Technology Co., Ltd.; Zibo Huitong Chemical Co., Ltd.) are actively expanding into high-purity oleic acid production; nevertheless, import dependency for premium applications is expected to persist over the near term.

Analysis & Assessment
1. Price Outlook:
- Short Term: Oleic acid prices are expected to remain relatively stable, with limited volatility, influenced by raw material costs, supply-demand dynamics, and international market fluctuations.
- Long Term: With global manufacturing recovery, chemical industry upgrading, and emerging market demand expansion, oleic acid prices—especially for premium products—are anticipated to trend upward gradually.
2. Supply-Demand Outlook:
- Supply Side: Domestic production capacity is incrementally ramping up; however, supply structure optimization remains incomplete, particularly for high-end products requiring continued imports.
- Demand Side: Downstream demand is sustainably growing across key sectors—including plastics, pharmaceuticals, and cosmetics—supporting overall market expansion.
3. Competitive Outlook:
- Global incumbents retain dominance in premium segments through technological leadership, brand equity, and channel coverage. Domestic firms must intensify R&D investment and brand development to enhance competitiveness.
- Regional chemical plants can leverage cost efficiency and localized service delivery to secure competitive advantage in mid-to-lower-tier segments.

Forecast
1. Price Forecast:
- In the second half of 2026, oleic acid prices are projected to fluctuate within the RMB 8,000–8,500/ton range; premium-grade products may exceed RMB 12,000/ton.
- In 2027, improved supply structure and robust demand growth are expected to drive gradual price appreciation, with an estimated annual increase of 3%–5%.
2. Market Trends:
- Green production, high-end differentiation, and customization will define the industry’s future trajectory. Enterprises must prioritize R&D in eco-friendly manufacturing processes and expand customized service offerings.
- Emerging markets—including India and Southeast Asia—will become new engines of global consumption growth, necessitating enhanced regional market penetration strategies.
3. Industry Opportunities:
- Global manufacturing recovery and chemical industry upgrading present broad demand opportunities; companies should capitalize by scaling production capacity and elevating product quality.
- Policy support—including China’s “High-Quality Development Plan for the Petrochemical and Chemical Industry”—will accelerate green and high-end transformation. Enterprises are urged to proactively align with these policy directions.