Aroma Trading Limited

Market Report October 2001

Terrorist attacks affect essential oil industry
The tragic events of September 11 are starting to have an indirect affect on the essential oil industry. Marine insurance premiums have trebled overnight in some areas. Additional security measures, especially on transport of hazardous materials, have caused delays and missed shipments. We have already had a shipment of Olibanum Gum (Frankincense) refused by a shipping company in Saudi as it classified the product as hazardous. They were confusing the flash point of the essential oil (35C) claiming it to be the same for the gum. The market has been relatively quiet and subdued, with no major activity taking place. Some of the major fragrance compounding houses have been quietly increasing the stocks of critical raw materials. Everyone is watching events in Afghanistan, where both Ramadan and Winter is fast approaching.

Bitter Orange
Spanish prices advancing on reports of limited availability from Ivory Coast and South America.

Chamomile Oil Blue
Although we have received some very attractive offers for this material, Chamazulene levels should be checked. We have received samples of Nepalese material with only 0.5% Chamazulene. Egyptian material varies between 2 - 5% and East European material at over 8%. If you are offered a bargain, be sure to analyse the delivery!

Lavandin
There is a substantially large carry over from last year, reportedly in the hundreds of Tonnes. This year's production figures well exceed the available demand, leading to an even higher carry over figure for next production season. Prices have been falling across the board. Unfortunately Organically Certified material is stable.

Lemongrass
Prices for Indian material have reduced by more than US $1.00 per kilo. Guatemalan material more readily available but at a premium of 30 percent over cochin oil.

Orange
Prices continue to advance for Brazilian material on the back of limited availability from origin. Energy shortages and drought are being blamed for poor availability.

Petitgrain
Supplies from Paraguay are limited. Bad weather is being blamed for low production. Prices may ease toward end of year if production commences later this month.

Alternative fuel
Reports from Australia suggest that the shells from Macadamia Nuts are to be burned to provide electricity. The shells and by-product will be burned in a steam turbine at a place called Gympie, north of Brisbane in Queensland.

Web Watch
The American Red Cross are one of many organisations helping in the aftermath of September 11th. Please visit www.redcross.org to get daily updates and make a donation. We also want to highlight the plight of the many Afghan refugees who are making their way across the border of Pakistan and those who are still in the country. The U.N. estimates there are about 7.5 Million refugees including children. Click on www.savethechildren.org.uk for more details.