HS Code:
Mixtures of methyl esters of C16-C18 and C18 unsaturated fatty acids (CAS No. 67762-38-3) and methyl hexadecanoate (Methyl Palmitate) (CAS No. 112-39-0), classified under HS subheading 3824.99.41, are chemical compounds derived from coconut, palm-kernel, or palm oil. These esters are primarily used in industrial applications such as surfactants, lubricants, cosmetics, and as intermediates in chemical synthesis, rather than as fuels. They are key raw materials in the production of environmentally friendly products due to their biodegradable nature and renewable source. Global trade in these products is driven by demand in the personal care, industrial, and chemical manufacturing sectors, particularly in regions with strong palm oil production.
Total Trade Volume
Approximately $1.2 billion USD
Data from 2022
Source
UN Comtrade Database, ITC Trade Map
$450 million USD
37.5% of total trade of total trade
Increasing
$380 million USD
31.7% of total trade of total trade
Increasing
$120 million USD
10.0% of total trade of total trade
Stable
$80 million USD
6.7% of total trade of total trade
Stable
$60 million USD
5.0% of total trade of total trade
Decreasing
Average Rate
5.2% ad valorem
Highest Rate
10% (applied by certain developing countries)
Lowest Rate
0% (under free trade agreements like EU-ASEAN or USMCA)
Growing demand for bio-based chemicals
Increased demand for methyl esters as sustainable alternatives to petroleum-based chemicals in cosmetics and industrial applications, driving trade growth by 8% annually.
2021-2023
Shift towards sustainable palm oil sourcing
Stricter regulations and consumer preference for certified sustainable palm oil products have influenced supply chains, impacting exporters without certifications.
2020-2022
Volatility in palm oil prices
Fluctuations in raw material costs have led to unstable pricing for methyl esters, affecting profit margins for producers and exporters.
2022-2023
The European Union implemented the Deforestation Regulation, requiring proof that palm oil derivatives, including methyl esters, are not linked to deforestation. This has led to increased compliance costs for exporters.
June 2023
Potential reduction in exports to the EU for non-compliant producers; increased market share for certified suppliers.
Indonesia adjusted its export levy on palm oil derivatives to encourage domestic processing, impacting the cost structure for methyl ester exports.
March 2023
Slight increase in export prices, potentially affecting competitiveness against Malaysian exporters.
Research and development have identified new uses for methyl esters in green chemistry, particularly as solvents and plasticizers, boosting demand in niche markets.
January 2023
Expected growth in trade volume by 5-7% in specialized industrial sectors over the next two years.