~ NEWSLETTER (SPRING EDITION 2004) ~

Helping  give the Children a good start in life…

Venus Enterprises Limited are the official agents for the Dominica Essential Oils & Spices Co-Operative Society Limited, for Dominica Bay Oil. Your continued orders not only help farmers manage their farms more efficiently, but also aid giving the children a good start in life and helps pay for their education.

Spring is on its way, and the good news is that the increase in optimism seen in the last quarter has been backed up with orders, sales with many more companies reporting increased activity with global demand now feeding through to many markets. As part of our commitment to keeping customers informed, we’ve enclosed a summary of how we see the market at the moment. If you’d like to find out more about any specific product mentioned, please call us and we will be happy to help. 

During February we saw the Eurozone inflation rate fall to 1.6%, its lowest level since November 1999. However, economists report that the central bank would need to see more price data before being convinced that inflation is under-shooting its target. 

It was reported during February that China planned to let exporters keep more of their foreign earnings in an effort to relieve the upward pressure on its currency 

Of some concern to many essential oil buyers, is the current situation in Haiti with the unrest that has instilled fear for some of the people. Reports seem to show that several banks, warehouses and stores have been vandalised. Production was stopped over recent weeks in the distilleries of Vetivert and Amyris. Hopefully things will return to a calmer atmosphere with the arrival of international forces.

London has experienced some delays on deliveries this month with the closure of one of major public warehouses that stored essential oils and aromatic chemicals. This caused a major logistics problem with stockists having to find alternative warehousing space – especially space that would encompass bond facilities, leaving goods in limbo until there was certainty that goods had been correctly moved.

~ BRINGING MARKETS INTO FOCUS ~

Amyris Oil:                            Demand strong due to uncertainty at origin. Stocks in Europe remain short. Currently it has been a case of more buyers than sellers. Stocks at origin have diminished somewhat and that attracted a queue of buyers. Hopefully availability will resume when things settle down.

Aniseed Oil/Anethol:           Production and sales meeting current requirements. However it does look like aniseed could have reached bottom on price, and exporters have been talking a firmer market. Consequently there has been a good spot trade for near Aniseed and Anethol from European based houses.

Bay Oil:                                   Market conditions look to remain stable.

Cardamom Oil:                     We are informed that Honduran farmers are asking higher prices for seeds, to cover the distillation of oil. Indian material currently offered at good prices.

Cassia Oil:                             Market steady with no real price changes.

Cinnamon Leaf Oil:              Market continues to be slow. Unchanged prices evidence of any real significant buying trend.

Citronella Oil 85/35:              All major origins showing increase in prices (up to 30% in some cases). Consequently some spot business has materialised in the European market.

Clove Leaf Oil:                      Oils produced by both Madagascar and Indonesia remain fairly subdued.

Coriander Seed Oil:             Despite rumours that there would be nothing produced this year there does seem to have been some distillation from 2003 seed. Prices at origin remain firm, but buyers are retaining their “softly, softly” approach and only buying as and when material is actually required. European market does seem to have enough material to cover the small enquiries as and when buyers are in the market.

Coumarin:                             Despite the revocation – as from the 1^st of February 2004 - of the antidumping order (in place since 1995) by the U.S. International Trade Administration on material imported from China, demand and prices remain relatively unchanged. A lot of business has been moved onto alternative sources of supply because of the similarity of quality and earlier price advantages.

D’Limonene:                         Continued increase in offers made by Brazil should see a further easing of prices over the coming weeks. 

Eucalyptol:                             With the closeness of this product to Eucalyptus, prices have firmed up with suppliers working off tight supplies.

Eucalyptus Globulus:          Market in past month has show a sustained upward trend. As we mentioned in our last report “Could this recent spot demand be the start of a soon to be upward turn?” Recent European business has shown how short the physical market in reseller hands really is, and realistic prices are now being paid for spot goods. Chinese new crop not available until June, and with reports of short sales by certain exporters, prices look to remain firm.

Geranium Oil:                       Chinese geranium oil offered at the moment does seem to be of low quality. Good quality oil at a premium. Egyptian oil prices have remained steady but could ease a little in the near future.

Ginger Oil:                             Price of ginger oil from China has risen quite sharply over the past couple of months cumulating in good sales. With the current shortage of high priced ginger root at origin we see no real reason for any immediate change.

Ho Wood Oil:                         No real change from our last report.

Menthol Crystals:                With higher prices emanating from both China and India in recent weeks business has been quite brisk for near material in the market place. Evidence does seem to favour consumer buying to dealer/trader business. However, there were some good prices to be found as a lot of dealers looked heavily stocked

Nutmeg Oil:                           Market looks to continuous stagnation for a while longer.

Patchouli Oil:                         Despite prices advancing at origin during February, the quietness in the market place allowed some good bargains to be found in reseller’s hands.

Peppermint Oil:                    European market was active during January and February with buyers actively buying both Chinese and Indian natural dementholised oil. Outlook for prices in China and India looking to remain bullish

Petitgrain Oil:                       Market slow on this product with buyers continuing their “softly, softly” approach to buying.

Pimento Leaf Oil:                 Business remains steady for both leaf and berry oil.

Orange Oil:                            With the crop in Florida over the past two months shown to be larger than expectations, prices have eased back in Brazil, although there is only a reported reduced volume of oil available.

Sandalwood Oil:                   Indian prices remain high and do not appear to be weakening. Indonesian oil prices also continue to remain firm. Offers of East African type have been recently quoted to the market. Whether this quality is suitable, or there is a continuity of supply is the main question.

Spearmint Oil:                      Spot market of both Chinese 60 and 80% firm with good business passing during the first quarter.

Tea Tree Oil:                         Market steady and price trend remains firm.

Vanillin:                                  Markets for both Vanillin, and Ethyl Vanillin, remain strong with a lot of business having been transacted. Demand looks to continue, and Vanillin prices have recently been increased in China due to increased price of Guaicol and increased demand; higher prices for Ethyl vanillin resulted with the reduction in VAT rebates combined with an explosion at a key factory that supplied the raw material o-nitrochlorobenzene.

Please note the factories of our producer of Egyptian Oils have now been certified Kosher by the London Beth Din.  We welcome your interests for Calendula Concrete, Carnation Concrete, Geranium Concrete, Jasmine Concrete, Marigold Concrete and Violet Leaf Concrete and other Egyptian Essential Oils, e.g. Coriander Herb, Geranium, Leek, Marjoram, and Onion etc.

 Aromatic Chemicals:         Many aromatic chemicals have, and are still firming in price. Many price rises are caused by recently reported anti-dumping tax on imported phenol.

Spices:                                   Please contact our London office on +44 (0)207 620 2252 for the latest news on Spices.