Aroma Trading Limited

Market Report May 2002

Eucalyptus
Still no sign of prices easing. Occasional bouts of panic buying are maintaining prices.

Guar Gum
We have noticed spot prices increasing over the last few weeks, allegedly forced higher by large orders from China. London traders say the forthcoming monsoon will determine if pricing will stabilise or move further forward.

Orange
Expect prices to gradually lower on news that the Brazilian crop will be over 10 per cent higher than last year. Some sellers still concerned that Florida production will be lower due to exceptionally dry and hot weather conditions.

Rose
Production starts in earnest this month, with Turkish crop at least on a par with last year, maybe slightly higher. No firm news from Bulgaria or Morocco at this time but there was some carry-over of Bulgarian Otto Oil from last year. Will hopefully have more accurate figures in next report.

Rosemary
Consumers are waking up to the idea that the crop is indeed as bad as we originally reported. Reports from Tunisia continue to confirm a significantly lower crop compared to previous years. A number of distillers are refusing to offer prices for the time being.

Sandalwood
The supply situation is still tight and very little stock is in the hands of resellers. The Kashmir stand-off is only fuelling higher pricing for the limited Sandalwood oil that is available. While both Pakistan and India continue to take pot shots at each other, the chances of a full-scale ground offensive taking place are somewhat slim. Temperatures in the region are currently in the mid-40s Centigrade and the monsoon season is almost upon us.

Vetivert
Chinese Oil has risen in price on news of limited availability of Indonesian material.

Web Watch
International events and disasters are reported with lightening speed thanks to the advances in modern technology and telecommunications. Sadly, there are many catastrophies, many in third world and remote countries. The Red Cross has been in existence for over 140 years and is the world's largest humanitarian network. With over 115 Million volunteers around the globe, we nearly always hear this organisation mentioned in reports or TV footage of tragic global events. But what do we really know about the Red Cross? Please visit www.redcross.int.