Indonesia Fatty Acids HS3823 Export Data 2025 February Overview

Indonesia Fatty Acids (HS 3823) 2025 February Export: Key Takeaways

Indonesia's Fatty Acids (HS Code 3823) export in February 2025 reveals a dual-market structure, with China dominating volume (27.53% share) at slightly lower prices, while European buyers like the Netherlands pay premium rates for refined grades. Exporters face tightening supply due to Indonesia's recent palm levy hikes, requiring buyers to secure contracts early. This analysis, covering February 2025 trade flows, is based on verified Customs data from the yTrade database. China's bulk purchasing contrasts with Europe's high-value demand, creating strategic opportunities for diversified sourcing. Policy volatility underscores the need for proactive supply chain planning in this concentrated yet bifurcated market.

Indonesia Fatty Acids (HS 3823) 2025 February Export Background

Indonesia's Fatty Acids (HS Code 3823), covering industrial monocarboxylic fatty acids, acid oils, and fatty alcohols, are vital for biofuels, cosmetics, and food processing, driving steady global demand. Recent policy shifts, like the May 2025 export levy hike on palm derivatives [FAS USDA], tighten supply chains, reinforcing Indonesia's role as a key exporter. Despite February 2025's stable anti-dumping duties, ongoing trade restrictions and HS code complexities [QC Intel] highlight the challenges and strategic importance of Indonesia's Fatty Acids HS Code 3823 Export in 2025.

Indonesia Fatty Acids (HS 3823) 2025 February Export: Trend Summary

Key Observations

Indonesia Fatty Acids HS Code 3823 Export volumes surged in February 2025, rising 8.6% month-on-month to 444.33 million kg, even as unit prices fell 3.0% to $1.29/kg.

Price and Volume Dynamics

The divergence between higher shipment volumes and lower prices suggests buyers prioritized securing physical supply over cost sensitivity, typical for industrial inputs like fatty acids where production schedules dictate demand. This volume growth likely reflects accelerated shipments ahead of anticipated further trade policy adjustments, as exporters acted to avoid potential disruptions or higher costs later in the year.

External Context and Outlook

Export availability was influenced by Indonesia’s broader policy framework for palm derivatives. Regulations such as the increased export levies introduced in May [USDA] and ongoing domestic market obligations (USDA) continued to constrain supplies of related feedstocks. With stricter export controls and possible HS code enforcement changes, Indonesia’s fatty acid exports face continued pressure on both volume accessibility and compliance costs moving forward.

Indonesia Fatty Acids (HS 3823) 2025 February Export: HS Code Breakdown

Product Specialization and Concentration

In February 2025, Indonesia's export of Fatty Acids under HS Code 3823 is dominated by sub-code 38231920 for industrial monocarboxylic fatty acids and acid oils from refining, which accounts for 25% of the total export value and 33% of the weight, with a unit price of 1.00 USD per kilogram. This low price points to a specialization in bulk, commodity-grade products. Anomalously, sub-code 38231300 for tall oil fatty acids shows negligible trade volume and is excluded from further analysis.

Value-Chain Structure and Grade Analysis

The non-anomalous sub-codes fall into two groups: standard industrial fatty acids like 38231990 and 38231100 with unit prices of 1.00-1.30 USD per kilogram, and higher-value industrial fatty alcohols such as 38237090 at 2.20 USD per kilogram. This split indicates a market dealing primarily in fungible bulk commodities, with a minor segment for slightly differentiated, value-added products.

Strategic Implication and Pricing Power

Exporters have limited pricing power due to the commodity-driven nature of most exports, where prices are influenced by raw material costs and external factors. As supported by [USDA Report], Indonesia's palm oil export policies affect these fatty acid trades, emphasizing a strategic need for cost control and volume-based operations over premium pricing.

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Indonesia Fatty Acids (HS 3823) 2025 February Export: Market Concentration

Geographic Concentration and Dominant Role

Indonesia's Fatty Acids HS Code 3823 export in 2025 February shows a clear concentration, with China Mainland as the dominant buyer. China took 27.53% of the total weight but 30.90% of the total value, indicating it pays a slightly lower unit price for this commodity, consistent with bulk purchasing of industrial-grade product.

Partner Countries Clusters and Underlying Causes

The trade forms two distinct clusters. The first includes the Netherlands and Italy, which have very high unit prices. This suggests they are importing higher-value, refined fatty acid products. The second cluster contains countries like Malaysia, the United States, and South Korea. They show a balanced ratio between weight and value, pointing to steady demand for standard industrial grades.

Forward Strategy and Supply Chain Implications

Exporters must prepare for policy-driven supply shifts. Indonesia raised export levies for palm products in May 2025 [USDA], and domestic market obligations have historically kept local supply tight (Argus Media). This volatility means buyers should diversify sources and lock in contracts to ensure stable supply of Indonesia Fatty Acids.

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Indonesia Fatty Acids (HS 3823) 2025 February Export: Buyer Cluster

Buyer Market Concentration and Dominance

In February 2025, the Indonesia Fatty Acids Export under HS Code 3823 shows a highly concentrated buyer market. A core group of buyers who make frequent, large purchases dominates the trade, accounting for over 91% of the total export value. This group also handles nearly 94% of all transactions, indicating a market driven by steady, high-volume demand. The four segments of buyers reveal that most business comes from this dominant cluster, with median trade patterns favoring consistent, bulk exchanges.

Strategic Buyer Clusters and Trade Role

The other buyer segments play smaller but distinct roles. Buyers with high value but low frequency represent about 5% of the value, likely involving infrequent bulk orders for specific needs, such as contract fulfillment or large-scale processing. Those with low value and high frequency contribute less than 1% in value but are active in transaction volume, possibly representing smaller, regular buyers like local distributors or testing markets. The low value and low frequency group, at around 2% value, may include occasional or niche buyers, such as spot purchasers or new market entrants, adding minimal but diverse demand.

Sales Strategy and Vulnerability

For exporters in Indonesia, the focus should be on securing and nurturing relationships with the dominant high-volume buyers to maintain stable revenue. However, risks arise from policy changes, such as recent export levy increases on palm products [USDA], which could raise costs and disrupt supply chains under HS Code 3823. The sales model should prioritize long-term contracts with bulk buyers while monitoring for opportunities in smaller segments to diversify and mitigate vulnerability to regulatory shifts. (USDA)

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Indonesia Fatty Acids (HS 3823) 2025 February Export: Action Plan for Fatty Acids Market Expansion

Strategic Supply Chain Overview

Indonesia Fatty Acids Export 2025 February under HS Code 3823 operates as a bulk commodity market. Price is driven by palm oil raw material costs and Indonesian export policies, like the May 2025 levy increase. Supply chains face high concentration risk. A few large buyers in China and Europe dominate trade volume. This creates vulnerability to demand shifts or policy changes. Indonesia's role is as a bulk supplier of industrial-grade products, with limited value-add.

Action Plan: Data-Driven Steps for Fatty Acids Market Execution

• Monitor Indonesian palm policy updates monthly using trade alerts. This prevents cost surprises from levy changes.
• Use buyer transaction data to lock multi-month contracts with top-volume clients. It secures stable revenue despite market volatility.
• Analyze destination unit prices to identify premium markets like the Netherlands. Shift minor volumes there to improve margins.
• Track competitor export volumes for HS Code 3823 in real-time. It helps anticipate price pressure and adjust sales tactics.
• Develop a backup supplier list from alternative origins. This mitigates supply disruption risks from Indonesia's domestic market obligations.

Take Action Now —— Explore Indonesia Fatty Acids Export Data

Frequently Asked Questions

Q1. What is driving the recent changes in Indonesia Fatty Acids Export 2025 February?

The surge in export volume (+8.6% MoM) alongside falling prices (-3.0%) reflects buyers prioritizing bulk supply security ahead of anticipated policy shifts, such as Indonesia’s May 2025 palm export levy increase.

Q2. Who are the main partner countries in this Indonesia Fatty Acids Export 2025 February?

China dominates with 30.9% of export value, followed by the Netherlands and Italy (high-unit-price buyers) and Malaysia, the US, and South Korea (steady industrial-grade demand).

Q3. Why does the unit price differ across Indonesia Fatty Acids Export 2025 February partner countries?

Price gaps stem from product grade: bulk industrial fatty acids (e.g., HS 38231920 at $1.00/kg) ship to China, while refined fatty alcohols (e.g., HS 38237090 at $2.20/kg) target European markets.

Q4. What should exporters in Indonesia focus on in the current Fatty Acids export market?

Exporters must secure long-term contracts with dominant high-volume buyers (91% of value) while monitoring niche segments to offset risks from palm policy volatility.

Q5. What does this Indonesia Fatty Acids export pattern mean for buyers in partner countries?

Buyers face supply chain risks due to Indonesia’s export levy hikes; bulk purchasers like China should lock in contracts, while premium buyers (EU) can leverage stable high-grade demand.

Q6. How is Fatty Acids typically used in this trade flow?

Most exports are industrial-grade monocarboxylic acids and acid oils (e.g., HS 38231920) for bulk manufacturing, with minor volumes of higher-value fatty alcohols for specialized applications.

Q7. What is yTrade?

yTrade is a global trade data platform that provides SaaS and API access to provide accurate, structured, and searchable import-export trade data for international business decisions. It enables users to access verified shipment records, analyse buyer and supplier activity, review company trade overviews, assess compliance risks, and monitor real market demand — all from a single, scalable system.

Q8. How can yTrade benefit my business?

yTrade helps businesses:

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Q9. What features does yTrade offer?

yTrade provides practical, trade-focused tools including:

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