Magnesium Stearate Prices to Remain Fragile Throughout June 2023
Magnesium Stearate Prices to Remain Fragile Throughout June 2023

Magnesium Stearate Prices to Remain Fragile Throughout June 2023

  • 14-Jun-2023 7:00 PM
  • Journalist: Bob Duffler

The demand for Magnesium Stearate is expected to follow a depreciating price trajectory in the month of June 2023 as well. Certain factors such as consistent reduction in its offtakes from the domestic and international market, oversupplies of stock, lower upstream Stearic Acid cost and weaken commerce might influence the overall market sentiments of Magnesium Stearate across the global market primarily in the United States and China.

Magnesium Stearate prices in the United States of America have generally been declining, which has been influenced by reduced feedstock stearic acid prices. Weakened downstream demand from the food and beverages, and other sectors, along with weaker freight rates, have combinedly contributed in the declining cost of Magnesium Stearate. A notable disruption in the supply chain as a result of market disruptions has also been observed, which has affected market sentiment of the product and increased the supply of goods in the US. Furthermore, Magnesium Stearate pricing chart have also been consistently declining due to decreased demand from the downstream market, which can be attributed to supply fluctuations and shifting end-user purchasing fundamentals. In general, the price of Magnesium Stearate has been falling over the last two months and is anticipated to mimic a similar trend until the first half of Q3 that after which the trend will reverse soon. Additionally, because domestic demand for Magnesium Stearate was weak, suppliers and traders concentrated on setting lower quotations to reduce their existing inventories.

Along with this, the trade conflict between China and the United States is another primary factor influencing the lower pricing sentiments for Magnesium Stearate. Due to the trade conflict, Chinese commodities are now subjected to higher tariffs, increasing their cost to American consumers. As a result, there is less demand for Chinese products and less export from China. The demand for goods from all countries has decreased because of the slowing global economy. Additionally, this has caused China's exports to decline considerably.

Similarly, the price of Magnesium Stearate is also anticipated to consistently decline in the Asia Pacific region, chiefly in the Chinese market. Due to fewer market orders, manufacturers are likely to lower their prices. Additionally, the market sentiment for Magnesium Stearate may continue to be negative as a result of a number of factors, such as the declining upstream production cost, the conflict in Russia and Ukraine, and the slowdown in the global economy. Due to this negative outlook, downstream demand for Magnesium Stearate decreased, which in turn reduced prices.

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