Indonesia Fatty Acids HS3823 Export Data 2025 May Overview

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

Indonesia’s Fatty Acids (HS Code 3823) exports in May 2025 reveal a market heavily reliant on China, absorbing 31.46% of volume but paying a lower average unit price of $1.42/kg, signaling demand for commodity-grade products. Regional buyers like Malaysia and Singapore import for refining, while European markets target higher-value shipments. Exporters face tightening supply risks due to Indonesia’s 10% palm export levy hike, urging diversification and contract stability. This analysis, covering May 2025, is based on cleanly processed Customs data from the yTrade database.

Indonesia Fatty Acids (HS 3823) 2025 May Export Background

Indonesia’s Fatty Acids (HS Code 3823), covering industrial monocarboxylic fatty acids, acid oils, and fatty alcohols, is a key feedstock for biofuels, soaps, and lubricants, driving steady global demand. In May 2025, Indonesia raised export levies on palm derivatives [FAS USDA], indirectly tightening supply chains for related products like fatty acids. As the world's top palm oil producer, Indonesia’s 2025 export policies shape availability, with HS Code 3823 shipments facing scrutiny amid broader trade adjustments [Global Trade Alert]. This positions Indonesia as a critical but volatile supplier.

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

Key Observations

Indonesia's Fatty Acids HS Code 3823 Export in 2025 May saw a significant volume increase to 443.22 million units, up 6.1% from April, while the unit price edged down slightly to 1.33 USD/kg, reflecting heightened export activity amid minor price adjustments.

Price and Volume Dynamics

The monthly data from January to May 2025 shows unit prices remaining relatively stable, ranging from 1.29 to 1.35 USD/kg, which aligns with the typical consistency seen in industrial fatty acids markets driven by steady global demand for palm-derived products. The volume surge in May, following a dip in April, suggests possible stock cycle adjustments or anticipatory shipping behavior, as exporters may have responded to underlying supply chain rhythms rather than sharp external shocks. This pattern indicates a resilient export flow for Indonesia's fatty acids, with May's performance reinforcing the product's role in industrial applications.

External Context and Outlook

The export levy increases on palm products implemented by Indonesia in May 2025, as detailed in the [USDA Gain Report], likely contributed to the volume spike as exporters rushed to avoid higher costs, despite no direct targeting of HS Code 3823. Broader policy shifts, including temporary duty adjustments (USDA Gain Report), could maintain slight volatility in the near term, but exports are expected to normalize as the market adapts to the new regulatory landscape.

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

Product Specialization and Concentration

In May 2025, Indonesia's Fatty Acids exports under HS Code 3823 are dominated by Industrial fatty alcohols (HS Code 38237090), which account for 30.91% of the export value and 16.79% of the weight, with a high unit price of 2.45 USD per kilogram. This sub-code shows clear specialization due to its premium pricing compared to others. An extreme anomaly is isolated: tall oil fatty acids (HS Code 38231300) with negligible trade volume, removed from the main analysis pool.

Value-Chain Structure and Grade Analysis

The remaining exports are grouped into two categories based on value-add stage. First, higher-value fatty alcohols like HS Code 38237010, with unit prices around 2.05 USD per kilogram, indicate processed goods. Second, various industrial monocarboxylic fatty acids, such as stearic acid (HS Code 38231100) and oleic acid (HS Code 38231200), have unit prices ranging from 0.90 to 1.47 USD per kilogram, suggesting mid-range, differentiated products rather than fungible bulk commodities. This structure points to a trade in specialized chemical goods with varying grades.

Strategic Implication and Pricing Power

For Indonesia Fatty Acids HS Code 3823 Export 2025 May, market players should focus on high-value fatty alcohols for better pricing power, as they command premium rates. The lack of direct export policy changes for this code, as noted in recent reports [USDA], means stability for now, but monitoring broader palm oil regulations is wise to anticipate raw material cost shifts. Strategic emphasis should be on quality differentiation to maintain competitive edges.

Check Detailed HS 3823 Breakdown

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

Geographic Concentration and Dominant Role

Indonesia's Fatty Acids HS Code 3823 Export in 2025 May shows strong reliance on China, which took 19.99% of shipments by frequency and 31.46% by weight, but delivered 33.68% of total value. This value-weight disparity points to China buying larger volumes of lower-grade, commodity-type fatty acids. The unit price for these exports averages approximately $1.42 USD/kg.

Partner Countries Clusters and Underlying Causes

The data reveals three clear buyer groups. The first includes regional processors like Malaysia and Singapore, which have high quantity shares, suggesting they import for further refining. The second group, containing India and South Korea, shows balanced weight and value ratios, indicating purchases of mid-range quality products. The third consists of European countries like Italy and Spain, which have low frequency but high value per shipment, pointing to targeted buys of specialized, higher-value fatty acid types.

Forward Strategy and Supply Chain Implications

Exporters should prepare for potential supply tightening and higher costs. Recent policy changes confirm this trend, as [the USDA] reports Indonesia raised export levies on palm products to 10% in May 2025. This move, aimed at boosting domestic processing, may reduce the availability of raw materials for fatty acid production. Companies need to diversify their supplier base beyond Indonesia and lock in contracts to manage rising export duties and ensure stable supply chains.

Get Complete Partner Countries Profile

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

Buyer Market Concentration and Dominance

Indonesia Fatty Acids Export 2025 May under HS Code 3823 shows a highly concentrated buyer market across four segments of buyers. The market is dominated by buyers who make frequent, high-value purchases, representing 87.40% of the total export value. This segment handles 93.61% of all transactions, indicating that most trade comes from regular, large-scale buyers driving the market.

Strategic Buyer Clusters and Trade Role

The other buyer segments play specific roles. Buyers with high value but infrequent purchases account for 9.70% of value, suggesting they are bulk buyers who trade occasionally, possibly for large projects or seasonal needs. Buyers with low value but high frequency make up 1.32% of value, likely representing small regular customers such as local distributors. Buyers with low value and low frequency contribute 1.58% of value, which could be new or testing clients with minimal impact.

Sales Strategy and Vulnerability

For exporters in Indonesia, the strategic focus should be on maintaining strong relationships with the dominant high-value, high-frequency buyers to secure steady revenue. However, over-reliance on this segment poses a risk if market conditions change. Opportunities exist in diversifying to attract more infrequent high-value buyers. The recent increase in export levies on palm products, as reported by USDA, may raise costs and require price adjustments, emphasizing the need for a flexible sales model that can adapt to policy shifts.

Check Full Fatty Acids Buyer lists

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

Strategic Supply Chain Overview

Indonesia Fatty Acids Export 2025 May under HS Code 3823 is driven by two core price factors. Product grade determines value, with high-value fatty alcohols (like HS Code 38237090) commanding premiums over standard acids. Buyer contract volume also sets prices, as dominant high-frequency clients secure bulk discounts. Supply chains face tightening raw material access. Recent Indonesian palm export levy hikes to 10% will raise production costs. This reinforces Indonesia’s role as a processing hub for specialized chemical goods, not bulk commodities.

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

• Analyze HS Code sub-categories monthly to track premium product demand shifts. This allows swift reallocation of production to high-margin items like industrial fatty alcohols.
• Use buyer transaction frequency data to predict order cycles and optimize inventory levels. This prevents overstock of lower-value acids and ensures readiness for major clients.
• Map geographic unit price disparities to identify markets paying premiums for specific grades. Target European buyers with tailored high-value product offers to boost margins.
• Monitor policy alerts for Indonesian palm oil levies and adjust contract pricing clauses proactively. This mitigates cost surprises from raw material export duty changes.
• Diversify export destinations by targeting secondary partners like India or South Korea with balanced quality needs. This reduces over-reliance on China’s volatile commodity-scale demand.

Forward-Looking Risk Statement

Over-dependence on China for volume and a few large buyers for revenue creates vulnerability. Any demand shift or policy change could disrupt flows. Companies must diversify buyers and product grades to stabilize earnings. Data-driven agility is key to navigating this market.

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 May?

The volume surged 6.1% in May 2025, likely due to exporters rushing shipments ahead of Indonesia's 10% palm export levy hike. Unit prices remained stable (1.29–1.35 USD/kg), reflecting steady industrial demand.

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

China dominates with 33.68% of export value, followed by regional processors like Malaysia and Singapore. European buyers (e.g., Italy, Spain) purchase smaller volumes of high-value specialty products.

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

Prices vary by product grade: Industrial fatty alcohols (e.g., HS Code 38237090) command premium rates (2.45 USD/kg), while China buys bulk commodities averaging 1.42 USD/kg.

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

Prioritize high-value fatty alcohols for pricing power and nurture relationships with dominant buyers (87.4% of value). Diversify beyond China to mitigate geographic concentration risks.

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

Buyers in China benefit from bulk commodity access, while European importers secure specialized grades. All should monitor Indonesia’s palm policy shifts for cost impacts.

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

Exports are primarily industrial inputs, ranging from mid-grade monocarboxylic acids for manufacturing to premium fatty alcohols for higher-value chemical 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:

• Identify active and verified buyers through global import data
• Discover reliable suppliers with real shipment history
• Monitor competitor previous trade activity
• Reduce sourcing and compliance risk with worldwide export data
• Support data-driven sales, procurement, and market expansion decisions
• Save time by replacing manual research with structured trade data analysis

Q9. What features does yTrade offer?

yTrade provides practical, trade-focused tools including:

• Global shipment search by HS code, product, company name, port, or country
• Detailed company trade profiles with ownership and relationship mapping
• Buyer and supplier discovery with real transaction trade records
• Basic compliance with background checks and sanctions risk screening
• Competitor's shipment tracking and selling/buying behaviour analysis
• Trade Trends to identify market demand and trade flow monitoring
• Big-Data Search engine with percised filters to generate accurate data reports
• Global Trade Data API access for Internal Softwares like CRM, ERP, and SaaS integration All data is structured, verified, and cleaned to ensure consistency and reliability.