Indonesia Fatty Acids HS3823 Export Data 2025 Q2 Overview

Indonesia Fatty Acids (HS 3823) 2025 Q2 Export: Key Takeaways

Indonesia’s fatty acids exports under HS Code 3823 in Q2 2025 show China as the dominant buyer, accounting for 29.58% of value share, indicating demand for higher-grade processed products. The market remains concentrated, with China, Malaysia, and the Netherlands driving bulk imports for industrial use, while smaller buyers target niche applications. This analysis, covering Q2 2025, is based on cleanly processed customs data from the yTrade database. Exporters face rising costs due to Indonesia’s recent levy hike, pushing a shift toward higher-value products to maintain competitiveness. Buyers should anticipate price adjustments and explore long-term contracts to mitigate supply chain risks.

Indonesia Fatty Acids (HS 3823) 2025 Q2 Export Background

Indonesia's Fatty Acids (HS Code 3823), covering industrial monocarboxylic fatty acids, acid oils, and fatty alcohols, are vital for biofuels, soaps, and food processing, driving steady global demand. In May 2025, Indonesia raised export levies under Ministry of Finance Regulation No. 30/2025, targeting palm-derived products like HS Code 3823 to boost domestic processing and support its B40 biodiesel mandate [FAS USDA]. As the world's top palm oil producer, Indonesia's 2025 Q2 policy shifts directly impact Fatty Acids export flows, tightening supply for key industries.

Indonesia Fatty Acids (HS 3823) 2025 Q2 Export: Trend Summary

Key Observations

Indonesia's Fatty Acids HS Code 3823 Export in 2025 Q2 showed a sharp unit price drop to 1.23 USD/kg in June, the lowest in the period, despite overall volume growth of 3.5% compared to Q1.

Price and Volume Dynamics

Q2 unit prices averaged 1.30 USD/kg, down slightly from Q1's 1.31 USD/kg, with June's decline highlighting market softness. Export volumes rose steadily, peaking at 491.94M kg in June, suggesting robust industrial demand typical for palm-derived products, where seasonal inventory cycles often lead to price adjustments amid stable consumption patterns.

External Context and Outlook

The June price volatility aligns with Indonesia's [export levy hike under Ministry of Finance Regulation No. 30/2025], effective May 17, which increased costs for HS Code 3823 products and likely spurred pre-regulation export surges, depressing prices (USDA Report). This policy shift toward domestic biofuel mandates may sustain supply pressures, keeping prices volatile through 2025.

Indonesia Fatty Acids (HS 3823) 2025 Q2 Export: HS Code Breakdown

Product Specialization and Concentration

In 2025 Q2, Indonesia's Fatty Acids Export under HS Code 3823 is dominated by Industrial fatty alcohols (sub-code 38237090), which accounts for over a quarter of the total export value. This product commands a unit price of 2.42 USD per kilogram, significantly higher than most other sub-codes, indicating a focus on higher-value specialized goods. A minor sub-code for tall oil fatty acids is isolated due to its negligible trade volume and does not influence the main analysis.

Value-Chain Structure and Grade Analysis

The export structure for Indonesia Fatty Acids HS Code 3823 in 2025 Q2 shows two main categories: specific fatty acids like stearic acid and oleic acid, and general industrial fatty acids including various acid oils. Unit prices range from 0.91 to 1.46 USD per kilogram, with general fatty acids trading at lower prices, suggesting a bulk commodity market with some differentiation based on grade and purity. This indicates that the trade is primarily in fungible bulk products, though with slight value variations.

Strategic Implication and Pricing Power

Exporters of higher-value products like fatty alcohols under Indonesia Fatty Acids HS Code 3823 Export 2025 Q2 likely hold stronger pricing power due to their specialized nature. However, recent policy changes, such as increased export levies on palm products [Ministry of Finance Regulation], may raise costs and push exporters towards focusing on value-added segments to sustain profitability amidst regulatory shifts.

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Indonesia Fatty Acids (HS 3823) 2025 Q2 Export: Market Concentration

Geographic Concentration and Dominant Role

In Q2 2025, China is the clear leader in importing Indonesia's fatty acids under HS Code 3823, holding a 29.58% value share against a 27.72% weight share, pointing to slightly higher-value exports that are likely more processed forms rather than raw materials. This disparity suggests that Indonesia's fatty acids shipments to China command a premium, possibly due to refined grades used in industrial applications, aligning with the commodity nature of this product where value increases with processing level.

Partner Countries Clusters and Underlying Causes

The import patterns show three main clusters: China, Malaysia, and the Netherlands form a high-volume group, driven by their strong manufacturing sectors that use fatty acids for goods like soaps and biofuels. A second cluster with the United States, India, and South Korea has moderate imports, reflecting diverse needs in food and cosmetics industries. Smaller importers like Italy and the Philippines may focus on niche uses, such as specialty chemicals, due to lower demand scales.

Forward Strategy and Supply Chain Implications

Indonesia's recent export levy hike in May 2025 [USDA Report] aims to boost domestic processing, which could raise export prices for fatty acids. Buyers should prepare for cost increases and explore long-term contracts or alternative sources to mitigate supply chain disruptions, while exporters might shift toward higher-value products to maintain competitiveness under these new policies.

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Indonesia Fatty Acids (HS 3823) 2025 Q2 Export: Buyer Cluster

Buyer Market Concentration and Dominance

The Indonesia Fatty Acids Export market in 2025 Q2 under HS Code 3823 shows extreme concentration, with buyers who purchase frequently and in large volumes dominating 94.26% of the total export value. This core group of high-value, high-frequency buyers represents the backbone of the trade, handling over 90% of both quantity and weight. The market is characterized by regular, bulk transactions, with the four segments of buyers clearly split between this dominant force and three smaller groups.

Strategic Buyer Clusters and Trade Role

The remaining buyer segments play niche roles. Infrequent but large buyers contribute 3.53% of value, likely representing strategic or one-off purchases from major industrial users. Regular but low-value buyers account for less than 1% of value, suggesting smaller, consistent orders from local or specialized markets. Occasional low-value buyers make up 1.34% of value, indicating spot market or experimental engagements that add minimal but diverse demand.

Sales Strategy and Vulnerability

For Indonesian exporters, the strategy must prioritize nurturing relationships with core high-frequency buyers to maintain stability, given their overwhelming share. The high dependence on this segment poses a risk if market conditions shift, especially with recent policy changes like increased export levies on palm products [USDA] aimed at boosting domestic processing. Sales should focus on direct, long-term contracts to mitigate volatility, while monitoring for opportunities in emerging buyer segments under the new regulatory framework.

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Indonesia Fatty Acids (HS 3823) 2025 Q2 Export: Action Plan for Fatty Acids Market Expansion

Strategic Supply Chain Overview

Indonesia's Fatty Acids Export 2025 Q2 under HS Code 3823 is a bulk commodity trade with two core price drivers. First, product grade dictates value. Industrial fatty alcohols command higher prices than general acid oils. Second, recent policy shifts like increased palm export levies directly raise costs. The supply chain implications are significant. Heavy reliance on a few high-volume buyers creates vulnerability. Geopolitical and regulatory changes can disrupt flows. Indonesia's role as a processing hub is now pressured to focus on value-added exports.

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

• Use buyer frequency data to lock in long-term contracts with core clients. This secures stable revenue and reduces exposure to spot market volatility.
• Analyze HS Code 3823 sub-codes to identify and promote higher-value products like fatty alcohols. This maximizes margin per shipment and aligns with policy shifts favoring processed goods.
• Monitor real-time policy updates from sources like the USDA for levy changes. This allows quick cost pass-through or strategic pivot to maintain competitiveness.
• Leverage geographic trade data to optimize logistics to top destinations like China. This reduces shipping costs and ensures timely delivery to key markets.

Forward Outlook

Indonesia Fatty Acids Export 2025 Q2 under HS Code 3823 faces cost pressures but also opportunities. Focus on value addition and strategic buyer management will define success. Adapt to policy changes quickly. Prioritize data-driven decisions over traditional methods.

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 Q2?

The June 2025 price drop to 1.23 USD/kg reflects market softness amid Indonesia's export levy hike, which spurred pre-regulation volume surges. Industrial demand remains robust, with Q2 volumes up 3.5% from

Q1.

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

China dominates with 29.58% of export value, followed by Malaysia and the Netherlands, forming a high-volume cluster tied to manufacturing needs like biofuels and soaps.

Q3. Why does the unit price differ across Indonesia Fatty Acids Export 2025 Q2 partner countries?

Prices vary due to product specialization: fatty alcohols (sub-code 38237090) command 2.42 USD/kg, while bulk industrial acids trade at 0.91–1.46 USD/kg. China’s premium reflects higher-grade imports.

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

Exporters must prioritize core high-frequency buyers (94.26% of value) through long-term contracts and shift toward value-added products like fatty alcohols to offset rising levy costs.

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

Buyers face potential price volatility due to Indonesia’s levy-driven supply pressures. China’s premium imports signal stable demand, but smaller markets may need alternative sourcing strategies.

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

Fatty acids are primarily fungible bulk commodities for industrial applications (e.g., soaps, biofuels), with specialized grades like stearic acid used in higher-value manufacturing.

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?

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Q9. What features does yTrade offer?

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