Palm Fatty Acid Distillate Price Trend and Forecast 2026-2027

China remained the priciest Palm Fatty Acid Distillate market tracked, rising just above 4.1% in Q2 2026 to near USD 1,280.00/MT from about USD 1,230.00/MT in Q1, and it was quality tightness together with biofuel policy spillovers that kept the market elevated. The global average climbed from close to USD 1,010.00/MT to near USD 1,047.50/MT, a gain of roughly 3.7%. It is worth noting that this market underwent a genuine rally-correction-recovery cycle through 2025, with Malaysian pricing falling to a cycle low near USD 840.00/MT in June before stabilizing and then gaining renewed strength entering 2026, and the global average is likely to run in the USD 1,000 to 1,150/MT range through the second half of the year.

Palm Fatty Acid Distillate, commonly abbreviated PFAD, is a byproduct obtained during the physical refining of crude palm oil, rich in free fatty acids, mainly palmitic acid, along with minor amounts of glycerides, sterols, and tocopherols. It serves as a cost-effective feedstock across oleochemicals including soap, detergents, and surfactants, biodiesel production, animal feed, and niche applications in rubber processing and waxes. Malaysia and Indonesia together account for more than eighty percent of global supply, given their dominant palm oil production base. Because this product is a direct byproduct of palm oil refining, crude palm oil prices and refinery run rates, biodiesel policy and renewable fuel mandates, and downstream oleochemical and feed demand cycles are what really move the price from quarter to quarter.

Palm Fatty Acid Distillate Price Forecast for 2026

Renewed strength entering 2026, supported by improved downstream confidence and tighter supply conditions, shows some sign of persisting through H2 2026 across every market tracked. Seasonal tightening in palm oil production and steady oleochemical demand should keep supporting the market regardless of how quickly biodiesel policy conditions evolve.

A further tightening of palm oil supply, or accelerating biodiesel demand following renewable fuel mandate changes, could be what pushes prices above this forecast. A return to the oversupply conditions that drove the sharp mid-2025 correction could be what pulls the market back toward the lower end instead.

For the Quarter Ending June 2026

Palm Fatty Acid Distillate Prices Q2 2026:

• China: USD 1,280.00/MT
• South Korea: USD 1,045.00/MT
• Malaysia: USD 1,020.00/MT
• Indonesia: USD 845.00/MT

Palm Fatty Acid Distillate Prices in China

China stayed the priciest market by a wide margin, with the price moving from about USD 1,230.00/MT to near USD 1,280.00/MT, a gain of just above 4.1%. It was continued quality tightness, together with biofuel policy spillovers, that carried the increase.

Why did the price of Palm Fatty Acid Distillate change in Q2 2026 in China?

Quality tightness, biofuel policy spillovers, and premium pricing at major ports have continued as buyers lock in volumes strategically, and tightened availability from origin has supported this momentum, and it is this combination that has kept Chinese pricing at the top of the range even as the broader market works through its own recovery cycle.

Palm Fatty Acid Distillate Prices in South Korea

The South Korean price moved from about USD 1,010.00/MT to near USD 1,045.00/MT, a gain of just above 3.5%. It was continued reliable Indonesian shipments, together with stable electronics-adjacent oleochemical demand, that carried the increase.

Why did the price of Palm Fatty Acid Distillate change in Q2 2026 in South Korea?

Processors have continued pacing restocking judiciously from key origins, and stable electronics-adjacent oleochemical needs, meeting reliable Indonesian shipments despite modest freight increases, have kept South Korean pricing on a steady upward path, signaling continued import steadiness.

Palm Fatty Acid Distillate Prices in Malaysia

The Malaysian price moved from about USD 985.00/MT to near USD 1,020.00/MT, a gain of just above 3.6%. It was continued improved downstream confidence, together with tighter supply conditions, that carried the increase.

Why did the price of Palm Fatty Acid Distillate change in Q2 2026 in Malaysia?

Seasonal tightening in palm oil production, meeting improved demand visibility from oleochemical producers, has continued supporting Malaysian pricing, and it is this combination of supply-side tightening and steadier downstream buying that has kept the market on a recovery path following the sharp correction recorded earlier in the cycle.

Palm Fatty Acid Distillate Prices in Indonesia

The Indonesian price moved from about USD 815.00/MT to near USD 845.00/MT, a gain of just above 3.7%. It was continued improved demand visibility from oleochemical producers, together with seasonal tightening in palm oil production, that carried the increase.

Why did the price of Palm Fatty Acid Distillate change in Q2 2026 in Indonesia?

Seasonal tightening in palm oil production, the primary feedstock for this byproduct, has continued supporting Indonesian pricing, and it is this supply tightening, combined with steady manufacturer buying from soap and other consumer applications, that has kept the market on its recovery path.

For the Quarter Ending March 2026

Palm Fatty Acid Distillate Prices Q1 2026:

• China: USD 1,230.00/MT
• South Korea: USD 1,010.00/MT
• Malaysia: USD 985.00/MT
• Indonesia: USD 815.00/MT

Palm Fatty Acid Distillate Prices in China

The price reached close to USD 1,230.00/MT in Q1 2026, a rise of just above 5.5% from Q4 2025. It was renewed strength entering the year, together with tighter supply conditions, that pushed the market higher.

Why did the price of Palm Fatty Acid Distillate change in Q1 2026 in China?

PFAD prices gained further momentum entering the new year, supported by improved downstream confidence and tighter supply conditions, and it was market participants anticipating sustained firmness on steady consumption cues that drove the sharp Chinese increase.

Palm Fatty Acid Distillate Prices in South Korea

The price reached close to USD 1,010.00/MT in Q1 2026, a rise of just above 5.1% from Q4 2025. It was consistent arrivals, together with moderate sentiment uplift, that pushed the market higher.

Why did the price of Palm Fatty Acid Distillate change in Q1 2026 in South Korea?

Consistent arrivals and moderate sentiment uplift supported Busan equilibrium entering the year, and it was this steady import pattern, meeting stable electronics-adjacent oleochemical demand, that drove the South Korean increase.

Palm Fatty Acid Distillate Prices in Malaysia

The price reached close to USD 985.00/MT in Q1 2026, a rise of just above 5.3% from Q4 2025. It was renewed strength entering the year, supported by improved downstream confidence and tighter supply conditions, that pushed the market higher.

Why did the price of Palm Fatty Acid Distillate change in Q1 2026 in Malaysia?

PFAD prices gained further momentum entering January, supported by improved downstream confidence and tighter supply conditions, and it was this renewed strength, following the stabilization and gradual recovery recorded through the second half of the prior year, that drove the Malaysian increase.

Palm Fatty Acid Distillate Prices in Indonesia

The price reached close to USD 815.00/MT in Q1 2026, a rise of just above 5.2% from Q4 2025. It was renewed strength entering the year, together with tighter supply conditions, that pushed the market higher.

Why did the price of Palm Fatty Acid Distillate change in Q1 2026 in Indonesia?

Renewed strength entering January was supported by improved downstream confidence and tighter supply conditions, and it was this momentum, meeting steady consumption from soap and oleochemical producers, that drove the Indonesian increase.

Quarterly Palm Fatty Acid Distillate Price Trends

This market moved unevenly across the six quarters tracked here, with a sharp mid-2025 correction and subsequent recovery dominating the pattern. Close to USD 945.00/MT in Q1 2025 fell sharply to about USD 860.00/MT, before recovering to near USD 895.00/MT and close to USD 959.25/MT by Q4, continuing to about USD 1,010.00/MT in Q1 2026 and near USD 1,047.50/MT in Q2. That is a rise of roughly 10.9% across the full window, dominated by the sharp mid-2025 dip and subsequent recovery.

What was Palm Fatty Acid Distillate Price in 2025?

It was oversupplied markets and weakened biodiesel demand that drove a sharp mid-year correction, before seasonal tightening in palm oil production and improved downstream confidence supported a gradual recovery through the second half of 2025. The global average opened near USD 945.00/MT in Q1, fell to a cycle low around USD 860.00/MT by Q2, and recovered to close to USD 959.25/MT by Q4, a rise of just above 1.5% for the year overall, masking the sharp swing that occurred in between.

Palm Fatty Acid Distillate Prices in China in 2025

The Chinese price climbed from about USD 1,080.00/MT in Q1 2025 to near USD 1,166.00/MT by Q4, a rise of just above 8.0% for the year, holding the highest absolute cost among the four markets tracked throughout. It was steady oleochemical and biofuel demand, meeting quality tightness and biofuel policy spillovers late in the year, that drove the sustained climb through 2025.

Palm Fatty Acid Distillate Prices in South Korea in 2025

The South Korean price climbed from about USD 900.00/MT in Q1 2025 to near USD 961.00/MT by Q4, a rise of just above 6.8% for the year. It was stable electronics-adjacent oleochemical needs, meeting reliable Indonesian shipments, that drove the gradual climb through 2025.

Palm Fatty Acid Distillate Prices in Malaysia in 2025

The Malaysian price fell sharply from about USD 980.00/MT in Q1 2025 to a cycle low near USD 840.00/MT in June, before recovering to close to USD 935.00/MT by Q4, a net decline of just above 4.6% for the year despite the sharp mid-year swing. It was oversupplied markets and weaker biodiesel demand, amid relaxations in renewable fuel mandates and increased Indonesian production, that drove the steep mid-year correction, before seasonal tightening in palm oil production and improved demand visibility supported the recovery that followed.

Palm Fatty Acid Distillate Prices in Indonesia in 2025

The Indonesian price eased from about USD 820.00/MT in Q1 2025 to near USD 775.00/MT by Q4, a decline of just above 5.5% for the year, the smallest absolute cost among the four markets tracked throughout, tracking the broader oversupply-driven softness that defined much of the year before recovering into 2026. It was increased Indonesian production contributing to oversupplied markets, meeting biodiesel demand that weakened amid relaxations in renewable fuel mandates, that pressured pricing through most of 2025.

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Expert Market Research: Your Source for Real-Time Palm Fatty Acid Distillate Price Intelligence

The Palm Fatty Acid Distillate market tracks crude palm oil economics and refinery run rates closely, so Expert Market Research follows those alongside biodiesel policy and renewable fuel mandate developments and downstream oleochemical and feed demand cycles across the four markets covered here. This is combined with trade flow data to build the forecasts. Should the Palm Fatty Acid Distillate pricing data or procurement strategy support be needed, the team is ready to help.