Indonesia Fatty Acids HS3823 Export Data 2025 July Overview

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

Indonesia's Fatty Acids (HS Code 3823) exports in July 2025 reveal a bulk commodity trade dominated by China, which accounts for 32% of export value and weight at a stable 1.25 USD/kg, with high-value markets like the U.S. paying premiums for specialized grades. Supply chain risks loom due to Indonesia's palm oil levy hikes, potentially raising costs for exporters. This analysis is based on cleanly processed Customs data from the yTrade database for July 2025.

Indonesia Fatty Acids (HS 3823) 2025 July Export Background

Indonesia’s Fatty Acids (HS Code 3823)—industrial monocarboxylic fatty acids, acid oils from refining, and industrial fatty alcohols—are vital for biofuels, soaps, and food processing, driving steady global demand. In July 2025, Indonesia tightened palm oil export policies, including levies on crude palm oil (CPO) [FAS USDA], indirectly impacting Fatty Acids trade flows. As a top palm producer, Indonesia’s export shifts for HS Code 3823 in 2025 highlight its strategic role in meeting global industrial needs.

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

Key Observations

In July 2025, Indonesia's exports of Fatty Acids under HS Code 3823 reached a peak in volume and value for the year, with unit price showing a slight recovery after a downward trend, highlighting robust export momentum despite price pressures.

Price and Volume Dynamics

From June to July 2025, volume increased by 5.3% to 518.19 million units, and value rose by 5.8% to $640.36 million, while unit price edged up marginally to $1.24/kg from $1.23/kg. This follows a broader 2025 trend where volume growth has been steady, rising from 409.27 million units in January, while unit price declined from a high of $1.35/kg in April, reflecting typical industrial cycles where increased export volumes often lead to competitive pricing adjustments to maintain market share. The consistent volume expansion suggests strong global demand for Indonesia's industrial fatty acids, possibly driven by downstream sectors like biofuels and chemicals.

External Context and Outlook

External factors, such as Indonesia's increased export levies on palm oil products in May and July 2025 [USDA Report], may indirectly affect fatty acids exports by raising raw material costs, though no direct policy changes were implemented for HS Code 3823 (Global Trade Alert). The outlook remains watchful as these policies could tighten supply chains or influence costs, but current data indicates resilience in Indonesia Fatty Acids HS Code 3823 Export 2025 July performance.

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

Product Specialization and Concentration

In July 2025, Indonesia's Fatty Acids exports under HS Code 3823 were highly concentrated, with Industrial fatty alcohols (sub-code 38237090) dominating the market. This product accounted for over 30% of the total export value, with a unit price of 2.26 USD per kilogram, significantly higher than most other items, indicating a specialized, higher-value segment. An anomaly is present with tall oil fatty acids (sub-code 38231300), which had minimal volume and value, and it is isolated from the main analysis pool due to its negligible impact.

Value-Chain Structure and Grade Analysis

The remaining exports can be grouped into two main categories: higher-grade fatty alcohols and various grades of industrial fatty acids. Fatty alcohols, like those under sub-code 38237010, have unit prices around 1.82 USD per kilogram, suggesting a more processed, value-added product. In contrast, fatty acids, such as stearic acid and oleic acid, range from 0.86 to 1.69 USD per kilogram, indicating a bulk commodity trade with varying grades but generally lower value. This structure shows a mix of differentiated goods and fungible commodities, not solely tied to price indices.

Strategic Implication and Pricing Power

Producers of higher-value fatty alcohols likely have stronger pricing power due to their specialized nature. However, the broader market for fatty acids may face pressure from commodity price fluctuations. The recent increase in palm oil export levies, as reported in the [USDA GAIN Report], could raise raw material costs, potentially squeezing margins for lower-value exports under Indonesia Fatty Acids HS Code 3823 in 2025 July. Companies should focus on diversifying into higher-margin products to mitigate risks.

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

Geographic Concentration and Dominant Role

China is the dominant export partner for Indonesia's Fatty Acids under HS Code 3823 in July 2025, with a 32.28% share of export value and 31.97% of weight, showing nearly equal ratios that point to a standard commodity grade priced around 1.25 USD per kg. This pattern indicates consistent, bulk trading of Fatty Acids as a raw material, with no significant premium or discount in China's purchases.

Partner Countries Clusters and Underlying Causes

Export partners form three clear clusters based on unit price disparities. The high-value cluster, including the United States, Thailand, and Philippines, pays above 1.50 USD per kg, likely for higher-purity Fatty Acids used in specialized industries. The medium-value cluster, with China, Netherlands, India, and Malaysia, trades at 1.20-1.50 USD per kg, reflecting standard bulk commodity flows. The low-value cluster, featuring South Korea and Italy, pays below 1.00 USD per kg, possibly for lower-grade or blended products in cost-sensitive applications.

Forward Strategy and Supply Chain Implications

Exporters should prepare for potential cost increases due to Indonesia's recent palm oil export levy hikes [USDA], which could affect Fatty Acids derived from palm. Buyers in high-value markets may need to secure contracts early to avoid price volatility, while those in low-value clusters might explore alternative sourcing to maintain cost efficiency. Supply chain players should monitor HS Code 3823 regulations for any changes impacting trade (Global Trade Alert).

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

Strategic Supply Chain Overview

The Indonesia Fatty Acids Export 2025 July under HS Code 3823 reveals a market driven by product specialization and buyer concentration. Price is shaped by product specifications (e.g., purity grades in fatty alcohols) and large contract volumes from dominant, high-frequency buyers. This structure gives pricing power to specialized producers but exposes bulk traders to cost pressures from palm oil levy hikes. Supply chains must prioritize securing high-margin product lines and managing relationships with key buyers to maintain stability. Indonesia acts as an assembly hub for differentiated goods, relying on technology and consistent buyer engagement to sustain exports.

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

• Target high-value, high-frequency buyers with customized contracts to lock in stable revenue and reduce demand volatility, because they dominate 88% of export value under HS Code 3823.
• Diversify into niche buyer segments (low-frequency, high-value) to capture opportunistic large orders and decrease dependency on core clients, mitigating concentration risks.
• Monitor and adjust product mix toward fatty alcohols (e.g., sub-code 38237090) to leverage higher unit prices (2.26 USD/kg) and offset rising raw material costs from palm oil levies.
• Use geographic unit price data to negotiate premiums with high-value markets like the U.S. and Thailand by emphasizing product quality, maximizing margin potential in competitive clusters.
• Track regulatory updates on palm oil policies (e.g., USDA reports) to anticipate cost changes and adjust pricing strategies early, ensuring supply chain cost efficiency for Indonesia Fatty Acids exports.

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Frequently Asked Questions

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

Indonesia's Fatty Acids exports in July 2025 saw a 5.3% volume increase and 5.8% value growth, with unit prices stabilizing at $1.24/kg. This reflects strong global demand, particularly for industrial applications like biofuels, despite price pressures from Indonesia's palm oil export levy hikes.

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

China dominates with 32.28% of export value, followed by the United States, Thailand, and the Philippines, which form a high-value cluster paying above $1.50/kg for specialized grades.

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

Price disparities stem from product specialization: high-value buyers (e.g., U.S., Thailand) purchase premium fatty alcohols (e.g., sub-code 38237090 at $2.26/kg), while bulk commodity buyers (e.g., China) trade standard grades at $1.25/kg.

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

Exporters should prioritize high-value, high-frequency buyers (88.11% of export value) to secure revenue, while diversifying into niche segments to reduce dependency risks from concentrated demand.

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

High-value buyers (e.g., U.S., Thailand) should lock in contracts early to mitigate price volatility, while low-value buyers (e.g., South Korea) may need alternative sourcing to maintain cost efficiency amid rising raw material costs.

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

Fatty Acids are primarily traded as industrial raw materials, with higher grades (e.g., fatty alcohols) used in specialized sectors like chemicals, and bulk grades for biofuels or commodity applications.