SunSirs: The Stearic Acid Market Was Operating Steadily This Week
April 22 2024 14:53:24 SunSirs (John)
Price trend
According to the monitoring of the commodity market analysis system of SunSirs, the stearic acid market haD been stable this week. As of April 19th, the mainstream price of domestic stearic acid (1840) was 8,560 RMB/ton, a decrease of 0.47% from last week, an increase of 1.78% from March 1st, and an increase of 4.14% from January.
Analysis review
Cost side: Since April, the palm oil market had been mainly oscillating and declining. As of April 17th, the average price of palm oil in the market was 8,038 RMB/ton, a decrease of over 5%. In the near future, Malaysia's palm oil is in a production increase cycle, and the bearish sentiment is still present, putting pressure on the rise of palm oil in the future.
Demand side: The PVC spot market prices had fluctuated this week. The manufacturer's quotations tended to be stable, and the on-site trading atmosphere was average. The decline in futures prices had suppressed confidence in the spot market, and dealer prices were more flexible. It was difficult to transact high priced goods. As of April 19th, the quotation for PVC SG5 was mostly around 5,450-5,750 RMB/ton.
In recent times, the market for stearic acid had been mainly stable, as upstream palm oil continued to be high and the profits of stearic acid almost was zero, and the utilization rate of stearic acid production capacity was around 62%. Downstream PVC had performed mediocrely, with poor purchasing intentions leading to inventory backlog.
Market outlook
The supply of stearic acid was relatively sufficient; In terms of demand, downstream factories purchased on demand, but the quantity had not improved, and the willingness to purchase was not good. The bearish demand side had affected the stearic acid market. However, upstream palm oil fell, and cost support gradually weakened. It is expected that in the short term, stearic acid will be dominated by weak consolidation.
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