The Palm Kernel Oil Price Chart for Q2 2025 reveals a pronounced downward trend across major global markets, including North America, APAC (China), and Europe (Germany). Driven by ample global supply, sluggish demand from end-use industries, and easing feedstock costs, the price of palm kernel oil (PKO) declined notably in most regions during the second quarter. This period marked a correction phase following the early 2025 price spikes that resulted from supply chain tightness in Southeast Asia and volatility in palm oil markets.

Palm Kernel Oil Price Chart: North America Market Analysis

Q2 2025 Performance Overview

In North America, Palm Kernel Oil spot prices witnessed a steady decline throughout Q2 2025. The regional Palm Kernel Oil Price Chart showed a 7.8% quarter-over-quarter drop, with prices closing June 2025 at approximately USD 1695 per metric ton (MT). This downward trajectory reflected a bearish market mood that emerged as supply availability improved while downstream consumption remained subdued.

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Key Drivers Behind the Downtrend

1. Improved Global Supply Flows:
   The resumption of consistent shipments from Southeast Asian producers, particularly Malaysia and Indonesia, alleviated earlier supply bottlenecks. North American importers benefited from competitive offers as freight costs normalized after Q1 disruptions.
2. Cautious Industrial Demand:
   Demand from major end-use sectors such as oleochemicals, personal care, and food processing weakened as buyers opted for smaller procurement cycles amid expectations of further price corrections.
   The cosmetic and detergent manufacturing sectors, traditionally significant PKO consumers, reported moderate utilization rates and high inventory levels during the quarter.
3. Feedstock and Substitute Oil Movements:
   The concurrent softness in crude palm oil (CPO) and coconut oil prices exerted additional pressure on PKO values. The spread between palm kernel oil and coconut oil narrowed, prompting some substitution among manufacturers.

Market Sentiment and Import Activity

The market sentiment across the U.S. and Canada remained largely bearish. Importers maintained cautious procurement strategies, balancing short-term coverage with the need to mitigate storage costs. Ports such as Los Angeles, New Orleans, and Houston recorded stable import volumes but reduced transactional prices as suppliers competed aggressively to secure contracts.

Trade data indicated that North American PKO imports increased modestly during Q2 2025, yet the average landed cost per ton decreased, highlighting the oversupplied market conditions. This trend contributed to consistent downward movement in the Palm Kernel Oil Price Chart across June.

End-of-Quarter Summary

By late June, PKO prices had stabilized near USD 1695/MT, marking one of the lowest quarterly averages in the past twelve months. The softening trend aligned with broader global vegetable oil markets and pointed toward potential stabilization entering Q3, depending on biodiesel demand and Southeast Asian export policies.

Palm Kernel Oil Price Chart: APAC (China) Market Analysis

Overall Market Movement in Q2 2025

In China, the Palm Kernel Oil Price Chart mirrored a more pronounced downward trend compared to North America. Spot prices declined by approximately 13% quarter-over-quarter, ending June 2025 near USD 1551/MT. This was largely attributed to oversupply in the domestic market and weak industrial consumption across the oleochemical and surfactant manufacturing sectors.

Supply Conditions and Oversupply Pressure

China’s palm kernel oil market was heavily influenced by robust import arrivals from Malaysia and Indonesia. The two leading exporting nations maintained strong production levels, while domestic refiners in China faced slower offtake from downstream buyers.
As a result, inventory accumulation at major ports such as Shanghai and Tianjin led to sustained downward pressure on prices.

The ample supply scenario was further supported by stable refining margins and favorable exchange rates, allowing traders to pass on lower prices to end-users.

Demand-Side Factors

1. Weak Oleochemical Sector Demand:
   Chinese manufacturers producing fatty acids, glycerine, and surfactants adopted a conservative approach due to reduced export orders from Western markets. The soft export demand restrained overall PKO consumption levels.
2. Substitution with Cheaper Alternatives:
   A notable trend was the increasing preference for palm oil derivatives over palm kernel oil in certain applications. This substitution behavior was influenced by relative cost efficiency as the PKO-CPO price gap narrowed.
3. Economic and Industrial Sentiment:
   The broader Chinese industrial slowdown and lower consumer spending also weighed on the palm kernel oil market. Industries tied to cosmetics and processed food reported weaker-than-expected seasonal sales, further suppressing PKO demand.

Quarter-End Situation and Outlook

By the end of Q2 2025, the Chinese palm kernel oil market was clearly in a state of oversupply, with bulk buyers refraining from restocking ahead of anticipated Q3 demand improvement. The Palm Kernel Oil Price Chart illustrated consistent month-on-month price erosion, stabilizing slightly toward late June.

Looking ahead, traders expect mild recovery potential if demand from personal care and detergent manufacturing rebounds in Q3. However, persistent global inventory pressure may cap any significant upward movement in the short term.

Palm Kernel Oil Price Chart: Europe (Germany) Market Analysis

Alignment with Global Downtrend

In Europe, particularly Germany, the Palm Kernel Oil Price Chart closely followed the trajectory observed in China. During Q2 2025, average prices in the German market experienced a quarterly decline of nearly 12–13%, reflecting the influence of international price corrections and lower procurement activity from key consumer industries.

Spot prices in Germany finished June 2025 at softer levels, mirroring the USD 1550–1570/MT range seen in Asian markets. The market maintained a cautious tone as traders awaited stronger downstream signals from the cosmetics and industrial chemical sectors.

Supply and Market Fundamentals

1. Abundant Imports from Southeast Asia:
   Germany and other Western European countries benefited from competitively priced shipments from Malaysia and Indonesia. Freight rates remained manageable, and domestic refiners leveraged bulk imports to sustain production margins.
2. Weak Demand from Personal Care and Industrial Segments:
   Major German and EU-based producers of soaps, detergents, and surfactants continued to experience flat to declining demand. High energy and operational costs during the spring months discouraged aggressive restocking activity.
3. Sustainability and Certification Dynamics:
   The European market continued to place emphasis on RSPO-certified palm kernel oil (Roundtable on Sustainable Palm Oil). While certification costs slightly offset some of the price decline, the overall trend remained downward due to weak consumption and inventory overhangs.

Currency and Economic Context

The Euro’s relative strength against the U.S. dollar during Q2 2025 slightly eased import costs, further reinforcing price softness in local currency terms. Inflationary pressures across the EU also affected consumer spending patterns, contributing to reduced demand for PKO-derived products such as soaps, shampoos, and processed foods.

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Quarter-End Assessment

By the end of June 2025, Germany’s PKO prices aligned closely with the global bearish trend, with the market reflecting a state of balance between sufficient supply and tepid demand. Buyers exhibited preference for short-term contracts amid expectations that Q3 could see stable-to-soft prices depending on tropical oil movements and biodiesel blending mandates.

Comparative Regional Insights: Global Palm Kernel Oil Price Chart Trends

Across all major regions, the Palm Kernel Oil Price Chart for Q2 2025 revealed consistent downward momentum, largely driven by synchronized global oversupply and restrained industrial activity. However, regional variations in logistics, import tariffs, and sustainability requirements slightly differentiated price realizations.

Key Market Drivers Affecting Palm Kernel Oil Prices

1. Production and Weather Conditions

The robust production outlook in Malaysia and Indonesia, coupled with favorable weather conditions, ensured uninterrupted supply throughout Q2 2025. This helped maintain comfortable stock levels globally, thereby limiting price escalation.

2. Energy and Freight Costs

Although global crude oil prices remained moderately volatile, freight rates for bulk edible oils normalized after early-year surges. Lower logistics costs further supported the downtrend observed in the Palm Kernel Oil Price Chart.

3. Substitution Trends

In multiple markets, palm kernel oil faced substitution pressure from both coconut oil and palm stearin, particularly in detergent and surfactant formulations. This competitive pricing dynamic exerted continuous pressure on PKO valuations.

4. Global Economic Conditions

The sluggish macroeconomic recovery and muted industrial production across China, Europe, and parts of North America constrained downstream consumption, reinforcing the bearish tone across PKO markets.

Palm Kernel Oil Price Forecast: Q3 2025 Outlook

Looking ahead, the Palm Kernel Oil Price Chart suggests a potential stabilization phase in Q3 2025, contingent upon demand recovery and supply discipline. Key influencing factors include:

• Seasonal restocking by personal care and detergent manufacturers may lend mild price support.
• Biodiesel blending mandates in Southeast Asia could indirectly tighten feedstock availability.
• Currency fluctuations and energy costs may affect import parity and refining margins.
• However, if the current oversupply persists, prices are expected to hover near current levels, with limited upside potential through early Q3.

Conclusion

The Palm Kernel Oil Price Chart for Q2 2025 clearly illustrates a global downward trajectory across North America, APAC (China), and Europe (Germany). The combination of ample global supply, sluggish industrial demand, and easing freight rates contributed to a synchronized price correction.

• In North America, prices fell by about 7.8% amid improved import flows and soft consumption.
• In China, the decline was steeper at 13%, driven by pronounced oversupply and weak oleochemical activity.
• In Germany, market performance mirrored Asia, reflecting global bearish sentiment.

As markets transition into Q3 2025, stability rather than recovery appears to be the near-term outlook. Unless demand from oleochemical and personal care industries strengthens or supply contracts unexpectedly tighten, Palm Kernel Oil prices are likely to remain under modest pressure, maintaining the cautious tone that dominated Q2.

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