Aroma Trading Limited

Market Report January 2005

Tsunami
December ended with the loss of up to 200,000 lives and many more missing as a result of the devastation from tidal waves caused by the undersea earthquake near Indonesia. Although it is still too early to say how much this may hinder production and shipment of essential oils from these areas, it is bound to have some effect.

Cinnamon Leaf Oil
Our suppliers in Sri Lanka say the plantations were not affected by the Tsunami, and any increase in price is down to exchange rate differences only.

Eucalyptus Oil
Market very quiet, and prices have not moved for some months now.

Nutmeg Oil
While supplies from Grenada are still affected by the Hurricanes of last year, the market has not reacted to reports of Tsunami damage in Indonesia, mainly because production in Aceh province is minimal. For the time being, supplies and prices are steady.

Patchouli Oil
Spot prices jumped US$15/kilo as panic buying took hold in the first days of January. Our suppliers in Indonesia have advised that there may be some interruption in supplies as most of the trucks available are focusing on the relief effort.

Sandalwood Indian Oil
Some parcels are being offered in excess of US $1250/kilo, which is US$300/kilo higher than November's price. We have no idea where the market will go next. There are no supplies of Indonesian Sandalwood Oil available presently.