Article: Menthol Markets Calmer After Roller-Coaster Year

MENTHOL PRICES SEEM to have finally settled after soaring to record highs in 1997. Prices are currently at $7 to $8 per pound, and brokers expect the market to stabilize for the next year despite last year's wild ride.

Last year's price surge can be attributed to India's rise as the market leader in menthol production. The country became the world's dominant producer in 1996 but was unprepared to lead the market.

Major plantings did not occur until late 1995 and the resulting shortage used up world stocks of menthol, driving prices to record highs of $45 per pound. Analysts expect India to produce 6,000 metric tons of menthol this year, more than half of the ...

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