Aroma Trading Limited

Market Report October 2004

Bay Oil W.i.
Although Hurricanes have hammered the state of Florida and the West Indies, Bay Oil production/availability seems to have emerged unscathed.

Eucalyptus Oil
Buyers have resisted ordering at current levels. If this persists, expect to see a decrease in price as traders seek to move on stock before year end.

Geranium Oil
Market is rather flat at the moment, although some speculators have purchased large quantities of Chinese Geranium Oil, causing a slight increase in price of spot stocks. Chinese Geranium is very attractively priced at the moment so it is a good time to order.

Litsea Cubeba
Prices have moved since our last report, as suppliers in China confirm the crop was indeed lower than 2003. We have been advised that Litsea will definitely increase in the coming weeks.

Menthol Crystals
Prices from India have increased dramatically in the last month or so, and it seems there is a lot of speculative trading taking place. Some of the Indian suppliers have by-passed the London traders by holding their own stocks in the UK and seem to be behind the jump in market prices. If the large consumers don't place orders at these high levels, prices will have to come down. Meanwhile only small orders are being placed for Chinese material. The next few weeks could be crucial.