For the Quarter Ending March 2025
North America
During Q1 2025, Stearic Acid prices in North America declined approximately 9%, driven by ample inventories, weak demand, and lower production costs due to falling feedstock prices and freight rates.
In January, declining palm oil production in Southeast Asia, especially in Malaysia, along with falling exports and weaker futures, led to reduced global Stearic Acid production costs. The uncertainty around Indonesia’s B40 biodiesel policy and competition from soybean oil further pressured palm oil prices. U.S. supplies remained sufficient, bolstered by imports ahead of a potential dockworker strike. Meanwhile, demand stayed healthy from the rubber and automotive sectors, with U.S. auto sales supported by hybrid vehicle interest.
In February, flood-related disruptions led to a steep drop in Malaysia’s palm oil output, restricting Stearic Acid supply. Yet, U.S. demand weakened as Bridgestone closed a key tire plant and auto sales dropped due to post-holiday sluggishness and weather disruptions. Inventories remained high, and sellers limited fresh imports.
By March, despite further supply constraints from Southeast Asia, improving logistics, falling freight rates (down 30%), and reduced spring demand led to continued price softness. Buyers largely operated on a need-only basis, keeping procurement minimal.
APAC
In Q1 2025, APAC stearic acid prices declined by approximately 5%, driven by ample inventories, muted demand, and lower production and freight costs. In January, Indonesian stearic acid production fell due to anticipated declines in palm oil output, influenced by La Niña and a delayed increase in Indonesia's B40 biodiesel blend. Palm oil prices dropped by 3%, easing production costs for stearic acid, while export volumes also declined. However, palm oil stocks remained a concern for production. In February, slight increases in palm oil prices led to a marginal uptick in stearic acid production. Indonesian palm oil exports dropped significantly, and the B40 mandate further pressured the palm oil supply. Demand for stearic acid remained sluggish, especially in the rubber industry, due to adverse weather affecting natural rubber production. By March, Indonesian palm oil production continued to decline due to weather-related disruptions and slow replanting efforts. Despite this, lower palm oil prices eased production costs. However, demand from the rubber sector remained weak, with minimal procurement activity expected until April.
Europe
During Q1 2025, European Stearic Acid prices fell by around 22%, pressured by ample inventories, muted demand, and lower production and freight costs. In January, Southeast Asian palm oil prices dropped due to declining production and uncertainties around Indonesia’s biodiesel policy, reducing Stearic Acid production costs globally. Lower-priced imports reached European ports, although port congestion and yard overutilization (75–80% at Hamburg terminals) delayed circulation. Domestically, inventory levels remained high due to minimal offtakes amidst extended holidays and sluggish rubber sector demand. February saw rising palm oil costs due to weather-related supply issues, but Stearic Acid prices in Europe remained subdued. Freight rates fell ~5%, yet Red Sea shipping disruptions and persistent port congestion limited import flow. Suppliers continued to rely on January inventories, while demand stayed low amid a soft automotive sector. In March, palm oil output declined further, yet exports also fell sharply, limiting Stearic Acid arrivals in Europe. A 30% drop in freight costs eased some cost pressure, but Ramadan closures in Asia and cautious European procurement kept trade minimal. Buyers postponed activity amid abundant stocks, limiting price recovery despite tighter global supply.
South America
During Q1 2025, Stearic Acid prices in South America declined by approximately 9%, driven by ample inventories, weakened demand, and lower production and freight costs. In January, declining palm oil output in Southeast Asia reduced global Stearic Acid production costs. Amid festive season closures in Brazil, consumption dipped, resulting in inventory backlogs. Although demand from the rubber industry saw localized support through initiatives like Seringo’s forest-friendly rubber tapping, this was insufficient to buoy prices. In February, Malaysian palm oil production plummeted due to flooding, tightening Stearic Acid supply globally. Yet, falling freight rates (down ~3%) and low inquiries in Brazil kept prices under pressure. Suppliers leaned on existing stockpiles without securing new cargoes, reflecting cautious procurement trends in a sluggish automotive sector. By March, even as Southeast Asia’s palm oil supply remained tight, global Stearic Acid prices declined further due to subdued demand, ongoing inventory digestion, and a sharp 30% drop in freight rates. Brazilian buyers avoided restocking ahead of Ramadan-related closures, keeping trading activity limited. Overall, ample inventories, low procurement appetite, and better material availability amid improving logistics ensured continued price softness across the region.
For the Quarter Ending December 2024
North America
The North American Stearic Acid market in Q4 2024 saw significant price increases, driven primarily by supply-side pressures coupled with steady demand. Prices surged by 8% compared to Q3. The rise in prices was primarily due to a 10% increase in palm oil prices in Southeast Asia, driven by limited production and higher biodiesel demand. Additionally, freight costs rose by 7%, further contributing to higher overall production costs.
The market was also impacted by logistical disruptions, particularly the ILA strike, which led to delays in cargo unloading across North American ports, including in Mexico. These disruptions affected the timely delivery of Stearic Acid, exacerbating supply-side challenges and contributing to longer lead times. Despite these supply constraints, demand remained strong, particularly from the Mexican automotive sector, where new car sales grew by 7.03% year-on-year in October 2024. This robust demand supported continued consumption of Stearic Acid throughout the quarter.
As the quarter progressed, the impact of global palm oil supply tightening intensified, further elevating production costs and exerting upward pressure on Stearic Acid prices. In December, Stearic Acid (Rubber Grade) CFR Veracruz prices increased by 2% compared to November, reflecting the ongoing challenges in the supply chain and the broader tightening of palm oil supplies.
APAC
In Q4 2024, the Stearic Acid market in the APAC region experienced significant upward pressure, primarily due to a 10% rise in palm oil prices in Southeast Asia, particularly in Malaysia and Indonesia, which increased production costs. This, along with ongoing supply constraints from reduced palm oil availability, resulted in limited Stearic Acid production across key markets like Japan. Freight costs surged as well, exacerbating supply chain challenges, and contributing to higher import costs. Demand conditions showed modest improvements, particularly from the automotive sector, but overall demand remained subdued, with limited impact on price dynamics. Production disruptions in Southeast Asia, driven by adverse weather and shifts in palm oil usage for biodiesel, compounded the supply shortage. As the quarter progressed, inventory levels remained tight, with suppliers reluctant to negotiate on prices, further contributing to the market's upward momentum. While demand from downstream industries like rubber was mixed, these challenges placed significant strain on market participants, who faced difficulties in managing costs, securing sufficient stocks, and navigating uncertain production and logistical conditions.
Europe
The European Stearic Acid market in Q4 2024 experienced a significant 6% price increase compared to Q3, driven by a rise in palm oil production costs in Southeast Asia. A surge in palm oil prices, combined with limited production in Malaysia and Indonesia, resulted in higher costs for Stearic Acid manufacturing. Although demand remained relatively muted, particularly from the automotive and rubber industries, price levels remained elevated due to tight supply. The automotive sector's underperformance, especially in electric vehicle markets, continued to affect demand for rubber, a major end-use for Stearic Acid. Freight costs also contributed to the increase in overall market prices, with logistical challenges at European ports further exacerbating supply chain disruptions. By the end of December, Stearic Acid prices in Rotterdam showed a slight decline of 1%, although the overall quarter saw a price rise. Despite improvements in downstream demand in early December, suppliers focused on moving cargoes due to financial year-end pressures. Overall, market participants are facing challenges from high production costs, tight supply, and subdued demand, particularly from the automotive and rubber sectors.
South America
The South American Stearic Acid market, particularly in Brazil, experienced a notable uptick in Q4 2024, driven by increased production levels from Southeast Asia, including Malaysia and Indonesia, as well as rising palm oil prices. The Brazilian market saw a 7% increase in prices compared to Q3 2024, with Stearic Acid (Rubber Grade CFR Santos) reaching historically high levels in early December. However, imports faced delays due to strikes at Santos port, impacting supply timelines. The automotive sector saw growth, with vehicle sales in Brazil experiencing a significant surge in October 2024, boosting demand for Stearic Acid, particularly in rubber processing. In addition, the US market also contributed to higher price levels in Brazil due to similar upward trends. Palm oil production costs surged due to a combination of policy changes and weather disruptions in Southeast Asia, tightening global supply. Despite the challenges, Stearic Acid demand remained resilient, with ongoing support from industries such as automotive and rubber. By the end of December, however, Stearic Acid prices saw a slight decline of 0.3% compared to the beginning of the quarter, reflecting the volatile market conditions. These developments indicate the market’s fragility in adjusting to both supply chain disruptions and price fluctuations.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American Stearic Acid market experienced a steady increase in prices, driven by several key factors. Rising production costs in Southeast Asia, particularly due to concerns over palm oil production in major exporting countries, contributed to higher import costs for Stearic Acid.
Additionally, elevated freight charges and port congestion further impacted North American market prices. In Southeast Asia, particularly Malaysia and Indonesia, supplies of Stearic Acid were constrained by a shortage of palm oil. In Malaysia, palm oil prices surged by approximately 11% in late September 2024, following a 3.8% decline in production to 1.82 million tonnes. Further seasonal declines were anticipated, leading to a domestic shortage of Stearic Acid and increasing prices. In Indonesia, palm oil production fell by 2% in August 2024, exacerbating the supply issues. The government's decision to raise the palm oil content in biodiesel from 35% to 40% increased demand, further pushing palm oil prices up globally. Exports of palm oil products also dropped significantly, from 3,385 thousand tonnes in July to 2,241 thousand tonnes in August 2024, fueling the rise in Stearic Acid prices across the global market. Mexico saw notable price changes, with a 10% increase compared to the same quarter last year and a 4% rise from the previous quarter in 2024. A 2% price difference between the first and second halves of the quarter indicated a steady upward trend.
The quarter ended with Stearic Acid Rubber Grade priced at USD 1,425/MT CFR Veracruz. Overall, the pricing environment for Stearic Acid in North America during Q3 2024 reflected a significant upward trajectory.
South America
Throughout Q3 2024, the Stearic Acid market in South America experienced a significant uptrend in pricing, driven by multiple factors influencing the market dynamics. The 11% increase in prices from the same quarter last year was primarily propelled by rising feedstock costs, particularly in Southeast Asia. Factors such as reduced palm oil exports, production constraints, and port congestions in exporting countries contributed to the heightened production costs of Stearic Acid in the region. In Southeast Asia, particularly Malaysia and Indonesia, supplies of Stearic Acid were constrained by a shortage of palm oil. In Malaysia, palm oil prices surged by approximately 11% in late September 2024, following a 3.8% decline in production to 1.82 million tonnes. Further seasonal declines were anticipated, leading to a domestic shortage of Stearic Acid and increasing prices. In Indonesia, palm oil production fell by 2% in August 2024, exacerbating the supply issues. The government's decision to raise the palm oil content in biodiesel from 35% to 40% increased demand, further pushing palm oil prices up globally. Exports of palm oil products also dropped significantly, from 3,385 thousand tonnes in July to 2,241 thousand tonnes in August 2024, fueling the rise in Stearic Acid prices across the global market. Brazil witnessed the most substantial price changes, with a 4% increase from the previous quarter and a 2% price difference between the first and second half of Q3 2024. This trend indicates a steady rise in prices throughout the quarter, showcasing a positive pricing environment. The quarter-ending price of USD 1445/MT of Stearic Acid Rubber Grade CFR Santos in Brazil reflects the overall bullish sentiment in the market, driven by sustained demand, supply challenges, and external market influences.
APAC
In Q3 2024, the APAC region experienced a significant 16% increase in Stearic Acid prices compared to the same quarter last year, driven by multiple factors. Rising feedstock Palm Oil prices, up by 6% from the previous quarter, played a crucial role in influencing market prices. The region saw a 3% price increase from the first to the second half of the quarter, indicating a steady upward trend. In Southeast Asia, particularly Malaysia and Indonesia, supplies of Stearic Acid were constrained by a shortage of palm oil. In Malaysia, palm oil prices surged by approximately 11% in late September 2024, following a 3.8% decline in production to 1.82 million tonnes. Further seasonal declines were anticipated, leading to a domestic shortage of Stearic Acid and increasing prices. In Indonesia, palm oil production fell by 2% in August 2024, exacerbating the supply issues. The government's decision to raise the palm oil content in biodiesel from 35% to 40% increased demand, further pushing palm oil prices up globally. Exports of palm oil products also dropped significantly, from 3,385 thousand tonnes in July to 2,241 thousand tonnes in August 2024, fueling the rise in Stearic Acid prices across the global market. Japan, in particular, witnessed the highest price changes in the region. The market displayed notable seasonality trends, with prices reflecting a consistent increase. The correlation between rising Palm Oil costs and Stearic Acid pricing was evident, with a stable and positive pricing environment prevailing throughout the quarter. The quarter-ending price of Stearic Acid Rubber CFR Tokyo in Japan stood at USD 1170/MT, underscoring the overall positive pricing sentiment in the region. The market dynamics were predominantly driven by the incremental costs of production inputs, signaling a stable and optimistic outlook for the Stearic Acid market.
Europe
During Q3 2024, the Stearic Acid market in Europe experienced a notable shift in pricing dynamics, marked by a 1% increase from the same quarter last year. Factors influencing this uptick included rising feedstock Palm Oil costs in exporting regions, such as Southeast Asia, leading to heightened production expenses. Additionally, high freight charges contributed to the expensive inventories entering the European market, further driving up prices. The negative correlation of -7% from the previous quarter in 2024 highlighted the volatility in pricing trends. In Southeast Asia, particularly Malaysia and Indonesia, supplies of Stearic Acid were constrained by a shortage of palm oil. In Malaysia, palm oil prices surged by approximately 11% in late September 2024, following a 3.8% decline in production to 1.82 million tonnes. Further seasonal declines were anticipated, leading to a domestic shortage of Stearic Acid and increasing prices. In Indonesia, palm oil production fell by 2% in August 2024, exacerbating the supply issues. The government's decision to raise the palm oil content in biodiesel from 35% to 40% increased demand, further pushing palm oil prices up globally. Exports of palm oil products also dropped significantly, from 3,385 thousand tonnes in July to 2,241 thousand tonnes in August 2024, fueling the rise in Stearic Acid prices across the global market. In the Netherlands, the market witnessed the most significant price changes, with a 3% difference between the first and second half of the quarter. This fluctuation indicates a period of instability and uncertainty in pricing. The quarter-ending price of USD 1553/MT of Stearic Acid Rubber Grade CFR Rotterdam in the Netherlands reflects the overall increasing sentiment in the market, showcasing a positive trajectory despite the challenges faced. The pricing environment in Q3 2024 has been characterized by a notable upward trend, influenced by various supply and demand dynamics impacting the Stearic Acid market in Europe.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, the North American market for Stearic Acid saw a notable decline, driven by several key factors. Reduced demand from the automotive and rubber industries, ongoing disruptions in supply chains, and fluctuating prices of Palm Oil, which dropped around 9% in May 2024, collectively pushed Stearic Acid prices lower. The underperformance of the automotive sector, particularly in electric vehicles (EVs), exacerbated this trend. Geopolitical tensions and logistical issues in major shipping routes also contributed to increased freight costs, further impacting market conditions.
In the USA, where the market experienced the most significant price fluctuations in the region, the overall trend for the quarter was predominantly negative. Prices declined by 1% compared to the previous quarter of 2024 and showed a 1% reduction between the first and second halves of Q2 2024. Year-over-year prices remained stable, highlighting a recent softening in market demand and supply dynamics despite stability in annual comparisons.
Seasonal factors, such as reduced demand for summer tires, also influenced the downward trajectory of Stearic Acid prices. The close correlation between automotive sector fluctuations and Stearic Acid pricing underscored its crucial role in rubber manufacturing. Despite efforts to stabilize inventories, market sentiment remained negative, culminating in a quarter-ending price of USD 1280/MT for Stearic Acid Rubber Grade CFR New York. This consistent decline indicates a challenging pricing environment shaped by external economic factors and specific industry conditions.
APAC
In the second quarter of 2024, Stearic Acid prices in the APAC region experienced a predominantly positive trend, driven by several key factors. A stable yet variable cost of palm oil, the primary feedstock, influenced by moderate production expenses and global supply chain disruptions, served as the primary catalyst. Additionally, congestion at critical Asian trade routes like the Strait of Malacca and Singapore port led to a more than 50% increase in freight charges, further boosting Stearic Acid prices. Despite sluggish demand from downstream industries, notably the automotive sector due to the Daihatsu safety test scandal halting production earlier in the year, prices remained stable midway through the quarter.
Japan, experiencing the most significant price fluctuations, saw market dynamics heavily influenced by heightened freight costs and a weakened Japanese Yen, which depreciated nearly 10.25% against the USD in the first five months of 2024. Seasonal patterns typically result in subdued summer demand, but increased input expenses and renewed manufacturing optimism balanced this effect. Compared to the same period last year, Stearic Acid prices rose by 6%, indicating strong market fundamentals. Sequentially from the previous quarter in 2024, prices increased by 5%, reflecting a sustained upward trajectory. Intra-quarterly volatility was slight, with a 2% price difference between the first and second halves of the quarter.
As the quarter concluded, Stearic Acid Rubber CFR Tokyo recorded a price of USD 1100/MT, marking a culmination of consistent price hikes. Overall, the pricing environment in Japan during Q2 2024 was bolstered by higher input costs, logistical challenges, and strategic market responses, fostering a generally optimistic market sentiment.
Europe
Throughout the second quarter of 2024, the European market for Stearic Acid saw prices decline persistently. This trend, amounting to approximately 10.2%, was primarily driven by weak demand from the automotive industry despite facing challenges such as port congestions and strikes at German ports. Fluctuations in Palm Oil prices, which dropped about 9% in May and continued to vary in June, played a significant role in reducing production costs.
Germany, notably affected within the European market, experienced the most significant price fluctuations. Prices showed an overall negative trend, declining by 1% compared to the same quarter last year and by 4% compared to the previous quarter in 2024. The first half of Q2 saw a more pronounced decline of 6%, reflecting an increasingly pessimistic market sentiment.
Environmental disruptions, such as floods in Northern Europe and congestion at key Southeast Asian ports, exacerbated oversupply issues, further pushing prices downward. Despite improvements in the broader automotive sector, particularly in electric vehicles, reduced sales led to higher inventory levels. This surplus improved material availability among German suppliers and shortened delivery lead times.
Despite seasonal fluctuations typical in the European market, Stearic Acid prices in Germany consistently trended lower, culminating in a quarter-ending price of USD 1530/MT for Rubber Grade CFR Hamburg. This sustained decline underscores a challenging pricing environment influenced by complex market dynamics and external economic pressures.
South America
In the second quarter of 2024, Stearic Acid prices in South America experienced a notable decline, reflecting a tough market environment. Several factors contributed to this downward trend. The decrease in Palm Oil prices. Which depreciated by approximately 9% during May 2024 across Southeast Asia played a crucial role by lowering production costs, thereby influencing Stearic Acid prices. Additionally, disruptions in supply chains, seasonal variations, and decreased demand from various industries all contributed to the overall price decrease.
Brazil, which saw the most significant price changes in the region, reported a 4% decrease compared to the same quarter last year, and a 2% decrease from the previous quarter in 2024. The latter half of the quarter showed a further 1% decline compared to the first half. The quarter-end price for Stearic Acid Rubber Grade CFR Santos in Brazil was USD 1370/MT, reflecting the consistently negative pricing trend observed throughout the quarter.
This sustained price decline underscores the challenging conditions and bearish sentiment prevailing in the Stearic Acid market in South America during Q2 2024. Despite efforts to mitigate factors like supply chain disruptions and seasonal fluctuations, the market continued to face pressures that impacted pricing dynamics significantly.
