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November 2023 Forecasts Persistent Surge in USA Magnesium Stearate Prices
November 2023 Forecasts Persistent Surge in USA Magnesium Stearate Prices

November 2023 Forecasts Persistent Surge in USA Magnesium Stearate Prices

  • 28-Nov-2023 3:29 PM
  • Journalist: Patrick Knight

Magnesium Stearate prices are likely to see a continuous optimistic trend across the North American region with a persistent rise in domestic offtakes. At a certain point, market participants witnessed a moderate uptick in downstream food, pharmaceutical, and industrial sectors. Also, industry analysts point to a combination of factors, with a notable emphasis on disruptions in the global supply chain that might support the optimistic market trajectory for Magnesium Stearate in the entire November.

The market environment for Magnesium Stearate remained impacted by fluctuating raw material costs and production difficulties, maintaining an unbalanced supply and demand situation. Since many excipients are made using energy-intensive processes that could raise the cost of finished goods for retailers, the ongoing rise in downstream consumption combined with suppliers' struggles with rising costs for essential components like magnesium oxide and higher energy costs could also result in higher excipient prices. This would further contribute to the overall rising cost structure of Magnesium Stearate. Logistics problems and labor shortages related to production have even further complicated the supply chain dynamics. Furthermore, because of the anticipated increase in consumption, the upcoming winter season may cause a delay in the downstream product's availability. This factor is anticipated to keep the prices of Magnesium Stearate and other excipients high in the upcoming months.

In addition to this, as worldwide businesses adapt to the evolving landscape, industry players are considering various strategies to navigate the challenges posed by escalating prices. Some explore alternative ingredients, while others engage in collaborative efforts to streamline the supply chain. Following, the world's leading exporter, China, considering excipients such as Magnesium Stearate, owing to its reduced production momentum on the back of the golden week holidays and rising inquiries from both the downstream and overseas inquiries, kept the prices of accumulated goods among the merchants further on the higher side. Furthermore, the suppliers and retailers also focused on destocking their previous Magnesium Stearate stockpiles at a continuous higher rate to gain their prior losses and to refill their warehouses with fresh stocks for Magnesium Stearate ahead of anticipation of a continuous rise in inquiries from overseas market.

In contrast, during the first half of the month, the market's cost support from another feedstock—stearic acid—fell in both exporting and importing countries due to a drop in demand from downstream sectors for end-user consumption. The easy availability of materials with merchants to produce its downstream products, such as Magnesium Stearate, was another effect of this cost upturn. As a result, the exporters did not alter their quotes, and the United States Magnesium Stearate price trend held steady for the first half of the month. Overall, Magnesium Stearate prices would rise during November and in the upcoming period, according to the market expert's prediction by a ChemAnalyst. Cost support from the upstream Magnesium Oxide might continuously keep the overall production cost on the upper side, reinforced by the heightened cost of energy used in the manufacturing. Consequently, this will result in an improved supply rate and a rise in storage activity among sellers and retailers within the US market, which will positively impact their market quotations for Magnesium Stearate.

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