Aroma Trading Limited

Market Report May 2004

Crude Oil
As prices pass the US$ 40-00/barrel mark, we have incurred an increase in freight charges mainly from the Far East of 6.5%. The exchange rate between the strong US Dollar and Sterling is not helping either. If this moves to US$ 50/barrel as the market says, then we will expect further increase in prices.

Cedarwood Atlas
Some of our customers are literally being harrased by self-appointed, do-goody, jackassed, desk-jockey 'personalities' in the Aromatherapy Trade, saying the use of Atlas Cedarwood should be banned as it is an endangered species. I gather the main female spokesperson hasn't even visited Morocco and is basing her opinion on some reports she has read. We know this information has not been gleaned from the web as she does not have internet access in her cave.

Having visited Morocco again last month, we took a detour to visit our distiller to ascertain exactly where he gets his raw material. We can categorically declare that no Cedarwood trees are felled for distillation. All raw material is sourced from the various furniture factories, which sell the wood cut-offs and sawdust as waste by-product which would otherwise be burned or dumped. If there was no waste by-product, we could not get the Oil. Our distiller in no way contributes to the destruction of the trees which are ultimately protected anyway. So we are actually recycling an otherwise waste by-product.

When time permits, I will post some photographs on the site. I could send some information to this 'personality' but Royal mail said there is no access road.

Chamomile Oil
Egyptian Blue Chamomile prices jumped US$ 100-00 over last month. East European Oil has not moved as yet. Distillation of English Roman Chamomile commences in the coming weeks, with a reasonable carry-over from last year's crop.

Coriander Seed Oil
Supplies remain tight, and with the high price of Coriander Seeds, the Oil will remain expensive for some time yet.

Eucalyptus Oil
Chinese exporters are maintaining their demand for higher prices, but not many buyers are placing orders. We could see an eventual reduction as stocks at source are mainly in the hands of resellers, and sooner or later, they will want to release.

Lemon Oil
This Oil is still competitively prices even though sellers readily attempt to increase prices. Argentine Lemon Oil is still most competitively priced.

Lemongrass Oil
Supplies for August shipment are extremely low and may be a good time to buy.

Petitgrain Oil
Paraguyan prices are still low with no sign of any increase. As is usual in these situations, the price is too low for the producers to distill additional supplies, and we have a situation of a potential shortfall if a large buyer takes volume out of the market.

Tea Tree Oil
Price of Australian exports on the increase, and the Strong US Dollar is not helping.