Indonesia Fatty Acids HS3823 Export Data 2025 June Overview

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

Indonesia’s Fatty Acids export under HS Code 3823 in June 2025 reveals a commodity-driven market, with China dominating as the top bulk buyer at 26.90% value share, reflecting demand for lower-grade industrial inputs. The trade is highly concentrated, increasing reliance risks, while regional clusters like the EU and US show varied pricing patterns. This analysis, covering June 2025, is based on cleanly processed Customs data from the yTrade database.

Indonesia Fatty Acids (HS 3823) 2025 June Export Background

Indonesia’s Fatty Acids (HS Code 3823)—covering industrial monocarboxylic fatty acids, acid oils, and fatty alcohols—are key for biofuels, soaps, and oleochemicals, with steady global demand. Recent policy shifts, like higher export levies on palm derivatives [FAS USDA] and tightened biofuel feedstock rules [Argus Media], highlight Indonesia’s strategic role as a major supplier. For June 2025, these measures reinforce its focus on domestic value addition while maintaining export flows under HS Code 3823, despite broader palm trade restrictions.

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

Key Observations

In June 2025, Indonesia's Fatty Acids exports under HS Code 3823 saw a sharp unit price drop to 1.23 USD/kg, the lowest in 2025, while volume surged to 491.94 million units, marking a significant shift from previous months.

Price and Volume Dynamics

The month-over-month comparison shows a 7.5% price decline from May's 1.33 USD/kg, alongside an 11% volume increase. This pattern suggests typical industry cycles where heightened production or preemptive shipping ahead of policy changes can depress prices despite robust demand, particularly in biofuel and oleochemical sectors that drive Fatty Acids usage. Year-to-date, the steady volume growth points to sustained export momentum, though the June price dip stands out as an anomaly in an otherwise stable pricing environment.

External Context and Outlook

Indonesia's export policies heavily influenced this trend. The May 2025 levy increase on palm products [USDA] likely raised costs, but exporters may have leveraged HS code loopholes for biofeedstocks (USDA) to boost volume, as noted in reports of shipments aligning with HS 3823 for European biodiesel markets. Looking ahead, continued regulatory tightening and traceability demands could sustain volume volatility while pressuring margins for Indonesia Fatty Acids HS Code 3823 Export 2025 June.

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

Product Specialization and Concentration

In June 2025, Indonesia's Fatty Acids exports under HS Code 3823 are dominated by industrial monocarboxylic fatty acids, with the sub-code 38231920 for other fatty acids and acid oils leading in value at $165.93 million, accounting for over a quarter of total export value. Its unit price of $0.85 per kilogram is lower than many peers, highlighting a focus on bulk, lower-value products. An extreme price anomaly is present in 38231300 for tall oil fatty acids, which has minimal trade volume and is isolated from the main analysis due to its insignificance.

Value-Chain Structure and Grade Analysis

The non-anomalous sub-codes fall into two clear categories: bulk fatty acids and higher-value fatty alcohols. Bulk fatty acids, including stearic acid (38231100), oleic acid (38231200), and various other types (38231990, 38231919, 38231930), have unit prices ranging from $1.04 to $1.34 per kilogram, indicating a trade in fungible commodities likely tied to palm oil indices. In contrast, fatty alcohols (38237090 and 38237010) command higher unit prices of $2.45 and $1.82 per kilogram, suggesting a more processed, value-added stage that moves beyond raw materials.

Strategic Implication and Pricing Power

This structure implies limited pricing power for bulk fatty acid exporters, who must compete on cost, while fatty alcohol producers can leverage higher margins. For Indonesia Fatty Acids HS Code 3823 Export 2025 June, strategic focus should shift towards value-added products like fatty alcohols to mitigate impact from export levies and biofuel feedstock regulations [USDA], which affect upstream palm derivatives and reinforce the need for diversification.

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

Geographic Concentration and Dominant Role

In June 2025, Indonesia's export of Fatty Acids under HS Code 3823 is highly concentrated, with China Mainland dominating as the top importer by both value and weight. China's value share of 26.90% is slightly lower than its weight share of 27.18%, indicating that exports to China are primarily bulk, lower-unit-price commodities, with an estimated average price around 1.22 USD/kg based on the disparity. This pattern suggests China sources large volumes of standard-grade fatty acids for mass industrial applications, reflecting the commodity nature of this trade.

Partner Countries Clusters and Underlying Causes

The importers form three clear clusters based on trade patterns. First, high-volume partners like China, Malaysia, and the United States have strong overall shares, driven by their large-scale industrial sectors needing steady supplies of palm-derived fatty acids. Second, countries like Italy and the Netherlands show lower value ratios compared to weight, implying they import cheaper, bulk-grade products possibly for specific uses like biofuels or lower-cost manufacturing. Third, balanced importers such as India and South Korea have moderate shares, likely due to diverse industrial demand and regional trade links.

Forward Strategy and Supply Chain Implications

For Indonesian exporters, the geographic concentration calls for diversifying markets to reduce reliance on top partners like China, especially with recent policy changes increasing export levies and anti-dumping duties on palm products [USDA]. Supply chains should prioritize compliance with traceability requirements to avoid disruptions, as enforced under regulations like anti-dumping measures (TariffNumber). Focusing on markets with stable demand, such as the US or India, can mitigate risks from volatile policy shifts.

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

Buyer Market Concentration and Dominance

In the Indonesia Fatty Acids Export market for June 2025, under HS Code 3823, the buyer structure is heavily concentrated, with one segment of high-value, high-frequency buyers dominating over 90% of the export value. This group drives the market with frequent, large purchases, indicating a reliance on consistent, bulk transactions typical for commodity products like fatty acids. The overall market for these four segments of buyers is characterized by high-volume, regular trade flows, centered around a few key players.

Strategic Buyer Clusters and Trade Role

The other buyer segments play smaller but distinct roles. Buyers making infrequent but large purchases account for a minor share, likely representing bulk orders for specific projects or seasonal needs. Another group consists of regular but small-volume buyers, possibly serving local distributors or niche markets with steady demand. The smallest segment involves occasional small buyers, which could include new entrants or specialized applications, but contributes minimally to overall trade.

Sales Strategy and Vulnerability

For Indonesian exporters, the focus should be on maintaining strong relationships with the dominant high-value buyers to secure stable revenue, given their overwhelming share. However, this dependence increases vulnerability to market shifts, such as policy changes like the increased export levies on palm products noted in USDA reports, which could raise costs and affect demand under HS Code 3823. Diversifying into the smaller buyer segments offers an opportunity to reduce risk and explore growth in less saturated markets, suggesting a need for a flexible sales model that balances direct bulk sales with broader distribution channels.

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

Strategic Supply Chain Overview

Indonesia's Fatty Acids Export 2025 June under HS Code 3823 operates as a bulk commodity market. Core price drivers are palm oil index linkage and product grade, with bulk acids like stearic and oleic trading at lower margins. Geopolitical risks, such as Indonesia's increased export levies and anti-dumping duties, add cost pressure. Supply chain implications focus on supply security for raw materials and Indonesia's role as a processing hub for palm derivatives. Heavy reliance on high-volume buyers like China increases vulnerability to demand shifts.

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

• Use HS Code sub-category data to shift export mix toward higher-value fatty alcohols. This captures better margins and reduces exposure to commodity price swings.
• Analyze buyer frequency patterns to secure long-term contracts with dominant high-value clients. This ensures stable revenue despite market volatility.
• Monitor real-time trade flows to key geographies like China and the US. This allows quick rerouting of shipments if policy changes disrupt demand.
• Implement supply chain traceability protocols for all HS Code 3823 shipments. This avoids penalties from anti-dumping regulations and maintains market access.

For Indonesia Fatty Acids HS Code 3823 Export 2025 June, traditional methods miss critical buyer and grade details. Trade data unlocks these profit levers.

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 June?

The sharp 7.5% price drop to $1.23/kg alongside an 11% volume surge reflects industry cycles and preemptive shipping ahead of Indonesia's May 2025 palm export levy hike, which pressured margins but boosted bulk shipments.

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

China dominates with 26.9% of export value, followed by Malaysia and the United States, forming a high-volume cluster that imports bulk-grade fatty acids for industrial applications.

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

Prices vary due to product grade: bulk fatty acids (e.g., stearic acid at $1.04/kg) target mass buyers like China, while fatty alcohols ($2.45/kg) cater to higher-value markets.

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

Exporters must prioritize relationships with dominant high-volume buyers (90% of trade) while diversifying into niche markets to reduce reliance on China and mitigate policy risks like export levies.

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

Buyers in key markets like China benefit from stable bulk supply but face potential cost hikes from Indonesian policy changes, while niche buyers can leverage underutilized trade segments.

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

Fatty acids are primarily traded as industrial commodities for oleochemicals and biofuels, with bulk grades for mass manufacturing and higher-value 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.

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