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๐Ÿ“ฆ Oleic acid

Oleic acid

HS Code:

๐Ÿ“ฆ

Overview

Oleic acid (HS Code: 2916.15) is a fatty acid that occurs naturally in various animal and vegetable fats and oils. It is an odorless, colorless oil, although commercial samples may be yellowish. Oleic acid is widely used in the production of soaps, cosmetics, pharmaceuticals, and as a chemical intermediate in various industrial processes. It is a key component in the manufacture of surfactants, emulsifiers, and plasticizers. The global trade of oleic acid is driven by demand in industries such as personal care, food processing, and industrial applications.

Total Trade Volume

USD 1.2 billion

Data from 2022

Source

UN Comtrade Database, International Trade Centre (ITC)

Tariff Analysis

Average Rate

5.2%

Highest Rate

12% (applied by certain developing countries)

Lowest Rate

0% (under free trade agreements like EU Single Market or USMCA)

Common Restrictions

  • Import quotas in specific markets to protect domestic industries
  • Quality and purity standards for industrial and food-grade oleic acid
  • Environmental regulations on sourcing raw materials (e.g., sustainable palm oil)
  • Licensing requirements for chemical imports in some regions

Market Trends

Rising demand for bio-based chemicals

Increased use of oleic acid in sustainable products drives market growth, especially in cosmetics and biodegradable plastics.

2021-2023

Fluctuations in palm oil prices

As a primary raw material, palm oil price volatility directly affects oleic acid production costs and trade margins.

2020-2022

Shift towards green certifications

Exporters with certifications like RSPO (Roundtable on Sustainable Palm Oil) gain competitive advantage in eco-conscious markets like the EU.

2019-2023

Recent Developments

EU Imposes Stricter Palm Oil Regulations

The European Union introduced new regulations targeting deforestation-free supply chains, impacting oleic acid derived from palm oil.

June 2023

Exporters from Indonesia and Malaysia may face higher compliance costs, potentially reducing their market share in the EU.

US Increases Investment in Domestic Oleic Acid Production

Government incentives for bio-based chemical production have led to new oleic acid manufacturing facilities in the United States.

March 2023

This could reduce US reliance on imports and shift trade dynamics in North America.

China Expands Industrial Use of Oleic Acid

Rapid growth in Chinaโ€™s surfactant and lubricant industries has boosted demand for imported oleic acid.

September 2022

Increased imports from Southeast Asia, strengthening trade ties with Indonesia and Malaysia.