Aroma Trading Limited

Market Report December 2003

Chinese Essential Oils
From January 1 2004, there will be a reduction in the tax rebate offered to Chinese suppliers on export of Essential Oils. This is bound to contribute to some cost increases for Chinese Distilled Essential Oils.

Clove Oils
The market is somewhat quiet and prices of Clove Leaf are very weak, both in Madagascar and Indonesia. This means lower prices for Eugenol, but buyers seem to be holding off purchasing any significant quantities until at least the new year.

Ginger Root Oil
Since our recent report, price for Chinese Ginger Root Oil has increased dramatically, fuelled by traders and consumers finally realising that the available quantities of ginger roots are greatly reduced.

Lemon Oil
Within the next few weeks Argentine, Spanish and Ivory Coast Crops will be in full production. Various parties are trying to talk up prices, but as all origins have carry over stocks, I can't see this happening. At this time Argentinian Oil is competitively priced.

Patchouli Oil
Spot prices increased in November but there are no reports of supply problems in Indonesia.

Sandalwood Oil
We have been offered East African Oil at about US $200/kilo lower than Indian Oil. As yet, the samples have not been analysed. After a lull in demand, the price of Indian Sandalwood is on the increase again.