SunSirs: The Stearic Acid Market Had Calmed Down This Week
April 15 2024 12:04:19 SunSirs (John)
Price trend
According to the monitoring of the commodity market analysis system of SunSirs, after experiencing previous ups and downs, the stearic acid market had remained calm this week. As of April 12th, the mainstream price of domestic stearic acid (1840) was 8,560 RMB/ton, an increase of 1.78% from March 1st and 4.14% from January.
Analysis review
Cost side: Malaysia's palm oil production was expected to increase this week, with futures prices falling. The external futures market had limited boosting effect, and the soybean oil and palm oil market had continued to decline. As of April 12, the average price of palm oil in the market was 8,660 RMB/ton. In mid April, South American soybeans were released one after another, and supply pressure remained. In the future, the power for the rise of soybean oil and palm oil is weak.
Demand side: The utilization rate of PVC production capacity had decreased this week, and most factories had entered a state of shutdown and maintenance. The supply of goods on site had gradually become tight, providing strong support for PVC prices. As of April 12, the price of PVC was 5,530 RMB/ton, an increase of 0.36% compared to last week.
Market outlook
In April, the fundamentals of the stearic acid market lacked sustained upward momentum, and South American soybeans were listed one after another. In the future, the power for the rise of palm oil is weak, and the supply is relatively loose. The support on the cost side had weakened, and the utilization rate of stearic acid production capacity was running steadily around 62%, while on-site inventory was still acceptable. Downstream lacked confidence in the market and purchased on demand. Overall, the stearic acid market is mainly consolidated in the short term.
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