Aroma Trading Limited

Market Report November 2002

Citronella Oil
The Chinese crop of Citronella Oil is almost completed, with yields and quality on a par with last year. However, producers fear the new environmental tax will probably affect long term supplies.

Orange Oil
As reported last month, Brazilian Orange Oil shortages are being blamed on bad weather. Some of the larger volume consumers have good cover, as they took advantage of lower prices in the recent past to increase their stock levels.

Orange Bitter
Supplies of this oil are hard to come by. We expect to see new crop material available in the coming weeks, but as yet, we have no information on crop size.

Sandalwood Oil
Since September, prices of Indian Sandalwood Oil have increased by over 10%. Our supplier warns that higher prices paid at the wood auctions will mean further price rises by the turn of the year. Supplies of genuine Agmarked Sandalwood Oil have continued to decline in recent years, not as a result of so-called deforestation, rather a lack of availability of true Sandalwood Oil. Alternative supplies from Indonesia are no better, and prices are just as expensive. Small lots of New Caledonian Oil are occasionally available but the material is overpriced to take advantage of the current availability situation. We still get offered Western Australian Sandalwood Oil but the quality is very different to Indian Sandalwood, but there may be a possibility to use the oil in its own right.