For the Quarter Ending March 2023
North America
In the US market for Stearic Acid during Q1 2023, sluggish procurement from the end-use cosmetic, food, and pharmaceutical industries has resulted in a pessimistic market trend. The pressure on input costs has begun to lessen, and the product was widely available in the domestic market. The market transactions were also average, and the price of Stearic Acid has remained below zero. The severe economic conditions brought on by the failure of two banks, Silicon Valley and Signature Bank, have compounded the market downturn of the detergent sector this month. Manufacturers have reduced their offers as a result. Additionally, according to market sources, the data shows that the cost of shipping goods from the United States to Asian markets like South Korea and India has decreased significantly.
APAC
The price of Stearic Acid continued to decline throughout the first quarter. Stearic Acid prices have not increased despite improvements in the manufacturing industry across the Chinese market. The market participants have stated that this continuous price reduction was due to the buildup of stocks and the moderate demand from the downstream cosmetic, food, and pharmaceutical industrial sector. Overall, despite abundant supply in the exporting countries, cost assistance from upstream palm oil was insufficient. Additionally, the increased availability of containers and the decline in freight rates have shortened transit times and helped to keep the flow of finished goods constant.
Europe
The pricing dynamics of Stearic Acid have shown an erratic pattern in the German market. Early in Q1, a slow rise in product supplies was seen in the domestic market. Along with the slowed market conditions, the manufacturer's quotations have decreased. The demand for Stearic Acid from the downstream detergent industry has been sluggish overall. The downward trend in economic activity was being mitigated in European nations by reducing input cost constraints. Additionally, the upstream Palm Oil cost support increased, and the market was operating at high levels towards the end of the first quarter. Manufacturers have raised their prices as a result for the end-use industries.
For the Quarter Ending December 2022
North America
The price of SLES in the US declined consistently throughout the fourth quarter of 2022, largely because the upstream palm oil price was falling. At the conclusion of Q4 2022, Stearic acid was selling for roughly USD 1721/MT in the US market. The greater accessibility of upstream crude oil from Indonesia helped to bring down the price of generating SLES in the US. During the year's conclusion, the downstream beauty industry's low demand was readily met by the abundant supply from Indonesia. The decreased demand for sunscreens during the winter seasons also abetted the declining price trend of Stearic acid in the US during Q4 of 2022.
APAC
As a result of a steady supply of upstream palm oil from Malaysia entering the local market at a lower rate during the last quarter of 2022, Stearic acid prices fell in China. Stearic acid pricing in South Korea followed the same pattern as in China since South Korea and China imports majorly from Indonesia. Stearic acid was projected to cost around USD 1540/MT in South Korea by the end of Q4 2022. The fourth quarter of 2022 witnessed a steady fall in demand due to negative purchasing sentiments brought on by the rising Covid-related regulations in the Chinese market.
Europe
Throughout Europe, Stearic acid costs decreased in the fourth quarter of 2022. A significant supply of upstream palm oil from Malaysia to Europe was able to meet the demand from the continent's downstream cosmetic industry, which helped to lower the cost of operation for Stearic acid in the European region. The demand for Stearic acid across Europe fell as a result of declining European procurement activity brought on by the winter season and rising inflation rates. Due to a scenario of weak demand and marginal gains in operating rates in Europe as a result of declining energy costs, Stearic acid prices declined in Europe during Q4 of 2022. Stearic acid cost in Germany during the end of Q4 was recorded at around USD 1802/MT.
For the Quarter Ending September 2022
North America
Throughout the third quarter of 2022, the price of Stearic acid in the US steadily increased, primarily due to hikes in demand in the domestic market for sunscreens during the summer months. The rise in Stearic acid cost in the American market despite the strong supply from exporting countries like Malaysia and Indonesia. The cost of producing Stearic acid in the US was increased despite the increased availability of upstream crude oil from Indonesia due to high demand. The constant demand from the downstream cosmetics industries was not fulfilled by the strong supply of palm from Indonesia and Malaysia at the end of Q3 2022 in the US market, where the price of Stearic acid was reported at roughly USD 2139/MT.
APAC
Stearic acid prices increased in China throughout the third quarter of 2022, despite Malaysia's consistent supply of upstream palm oil entering the local market at a reduced rate. Stearic acid's price rise in the Chinese market was aided by the disrupted trade routes between Indonesia and China. The Covid-related restrictions in China disturbed trade, which further caused the demand to rise steadily. Stearic acid pricing in South Korea followed the same pattern as in China, as both countries imported from Indonesia. In South Korea, the cost of Stearic acid at the end of Q3 was estimated to be roughly USD 1863/MT.
Europe
Stearic acid costs increased in Europe throughout the third quarter of 2022. High energy costs increased the supply (transportation) cost in the European region, and the strong supply of upstream palm oil from Malaysia and Europe was not sufficient to satisfy the demand from the continent's downstream cosmetic (sunscreen) industry. High temperatures during Q3 throughout Europe caused demand hikes for downstream sunscreens. Stearic acid prices increased in Europe due to a scenario of rising demand as a result of high temperatures and operating cuts in the downstream cosmetics production facilities in Europe caused by excessive energy costs. Stearic acid cost in Germany during the end of Q3 was recorded at around USD 1973/MT.
For the Quarter Ending June 2022
North America
At the start of the second quarter of 2022, Stearic acid prices rose in the American market. The price increase in the domestic market for the entire second quarter was aided by the robust demand from the downstream cosmetic industry. After the supply of soyabean oil and sunflower seed oil was hampered by the ongoing conflict between Russia and Ukraine and floods in South Africa, the expensive upstream palm oil became the most in-demand food oil. However, the prices of Stearic acid eased during the last months of Q2 2022 in the American market due to improved supply from exporting countries like Malaysia and Indonesia.
APAC
Due to the rising costs of its upstream components, the price of Stearic acid in the Indian market climbed throughout the second quarter of 2022. The price of upstream palm oil in India increased because of the rising demand for edible oil on the Indian market. The price started to decline nearing the end of Q2 2022 due to the abundant supply of stearic acid from Bangladesh. The cost of Stearic acid peaked in China during the start of Q2 2022, owing to the several Covid-19-related lockdowns. The price eventually eased as the port conditions started to return to a normal state in the following two months, and the supply from Indonesia returned to a relatively normal state.
Europe
The price of Stearic acid in the European market increased at the beginning of the second quarter due to growing operating expenses brought on by high energy costs and rising upstream palm oil costs due to the European food oil crisis. The downstream cosmetics and candle manufacturing sectors' witnessed a negative market mood causing a decline in prices for the rest of Q2 2022. The cost of Stearic acid dropped in the European market due to poor demand for sunscreens and lotions during Q2 2022 and high competition from alternative surfactants like Linear Alkyl Benzene Sulfonic Acid, which is quite popular in European countries.
For the Quarter Ending March 2022
North America
Stearic Acid prices during the first quarter of 2022 witnessed month-on-month increment which was not high as other markets and was traded around USD 2255/MT in last month of the first quarter of 2022. The American downstream personal care sector has the largest consumer base, so they prefer to derive their Stearic Acid from corn oil, which is easily available in the US, unlike most of the global countries. High demand from personal care industry abetted the rising price trend of Stearic acid in the first quarter of 2022.
Asia Pacific
Stearic acid in the Chinese market during the first quarter of 2022 witnessed an upward trend and was traded around USD 2070/MT at the end of first quarter. The rise in the Stearic Acid prices was primarily due to the high demand of the upstream palm oil owing to limited production and exports from the major palm oil exporting countries like Malaysia and Indonesia. The fall in values of Chinese currency in spot market due to lockdown of ports to counter the resurgence of Covid cases contributed to the price hike of Stearic Acid. The Indian market witnessed Stearic Acid price trend which was very similar to that of the Chinese market where prices were recorded at USD 1720/MT during March 2022.
Europe
Stearic Acid prices in the European market increased at a slow rate and was traded at USD 2120/MT at the end of first quarter of 2022. The imports of upstream palm oil from Malaysia and Indonesia to the European countries were lower than usual on the account of Russia-Ukraine conflict, labor shortage in Malaysian palm fields, where Indonesia prioritized the regional market for palm oil exports. The low imports and availability of the upstream palm oil in Europe led to the upward trend of Stearic acid price in Europe in the end of Q1 of 2022.
For the Quarter Ending December 2021
North America
The Stearic Acid prices continued to hop upwards during the fourth quarter of 2021 on the back of raging import costs. The exorbitance in the import prices resulted from the record-breaking palm oil feedstock prices in the international market as well as heavy disruption in supplies due to the global container crunch, especially during October. The USA, which majorly imports stearic acid from Malaysia received a further hit in supply chains during December owing to the Malaysian floods, leading the prices in December to settle at USD 2230/MT, the highest in the year. The high demand in the personal care sector kept on exerting cost pressure on the stearic acid market.
Asia
The Stearic Acid market entered the fourth quarter of 2021 showing steep growth in prices. The tightness in supplies and the consequent skyrocketing palm oil feedstock prices caused Stearic Acid contracts in Asia to remain upsurged throughout the fourth quarter which weighed heavily on the downstream sectors. In India, the prices stabilized for a brief period in December as imports started paving their way in the domestic market, however, the renewed supply crisis in palm oil inventories in Malaysia, caused the prices to again tread upward, settling around USD 1540/MT. China market demonstrated a similar outlook to India as the Stearic Acid prices, which hovered around USD 1550/MT during December, remained to be the highest recorded price value in 2021 supported by the prolonged port container issue as well as strong feedstock in the international market.
Europe
The high price volatility of palm oil feedstock did not spare the European Stearic Acid market from the state of mayhem during the fourth quarter of 2021. The upward cost pressures from supply disruptions amid the container crisis also continued to circulate in the Stearic Acid market for a larger part of the quarter. Despite a small respite in the supply chains during December, the import frequency in Germany seemed to struggle catching up with the frenzied demand fundamentals projected by the downstream personal care sector causing the prices to settle at USD 2080/MT.
For the Quarter Ending September 2021
North America
The demand remained bullish for Stearic acid across the North American region in Q3 despite cripple production as raw material availability and logistical problems laid large over the supply fundamentals. The availability of trucks got limited in the US where hurricane Ida worsened the logistics issues in quarter 3. Concerns regarding tallow feedstock continued in the US oleochemical sector in Q3, while elevated consumption numbers from renewable diesel have further lengthened the supply of tallow. Intake volumes kept on rising through the quarter as the personal care products market continue its booming march ahead. Prices of Stearic Acid triple pressed were assessed at USD 1680-1710 per MT in early August on a DEL basis.
Asia
The Asian market witnessed a steep rise in the prices of Stearic acid across the Asia Pacific region in Q3 of 2021. In India, the market dynamics closely traced Q2 scenario as the demand from the domestic market remained stable, while prices of raw materials rose significantly in the country. Traders revealed that demand from downstream tire manufacturers improved towards the end of Q3 as the demand for tires after manufacturing of private vehicles since July. Thus, the pricing trend of Stearic acid followed an upward trajectory and Ex-Works offers in east India escalated from USD 801/MT to USD 1314/MT from July to September.
Europe
In the European region, under the fluctuation of palm oil price, the domestic market price of Stearic acid also fluctuated significantly during the 3rd quarter of 2021. Several Stearic acid producers raised their quotation many times in Q3 driven by the strong price and tight palm oil supplies from Southeast Asia. In terms of demand, offtakes remained firm from the downstream manufacturers. Soaring freight costs and increased shipping charges further affected the pricing trend across the region.
For the Quarter Ending June 2021
North America
During Q2 2021, North American Stearic Acid market witnessed firm sentiments, as the demand remained consistently strong, and prices rose effectively. The demand for Stearic Acid from the downstream soap and detergent sector remained sturdy throughout the quarter in USA, followed by demand from rubber and intermediate chemicals segment. In addition, soaring upstream Palm Oil prices in Asia also impacted the prices of Stearic Acid across the region in the meantime. Therefore, prices rose from USD 1132/MT to USD 1222/MT during this quarter in USA.
Asia
Stearic Acid prices kept fluctuating throughout the quarter in APAC region, due to volatility in feedstock prices. In China, prices of Stearic Acid remained high due to sturdy offtakes from the domestic market after strong economic rebound of the country. While in India, prices kept fluctuating due to uncertainties caused by pandemic and high volatility in prices of Palm Oil. Traders restrained to procure Palm Oil for the product, due to the uncertain demand pattern and availability of other alternatives in the market. Therefore, price eventually slipped to USD 876.8/MT during the last week of June in India.
Europe
Europe witnessed stable demand for Stearic Acid during this quarter, supported by firm offtakes from the downstream rubbers and detergent manufacturers. Prices of Stearic Acid rose effectively across the region due to expensive cargoes of Palm Oil from Asia and sturdy offtakes be the downstream end users. In addition, soaring freight cost and rise in production cost, also exacerbated the overall price increment on Stearic Acid in the meantime.
For the Quarter Ending March 2021
North America
The North American market encountered a steady rise in prices of Stearic Acid during Q1 2021. Despite of the stable demand from the downstream automotive and adhesive segment, prices rose effectively due to the material shortage. This rise was bolstered by severe shortage of feedstock chemicals and halted production activity after US gulf storm in February. Thus, the prices traced a sharp upturn of about 9.17% and hovered around USD 1130 per MT during March end across USA. This steep rise was also supported by expensive cargoes from Asian countries, as the prices of raw materials were running all time high during this timeframe.
Asia
Demand fundamentals in the Asian market also fluctuated in a stable to firm range, where post COVID 19 recovery brought improvement in rubber, lubrications and other automotive segments. However, these sectors were not fully restored and were running on lower pace compared to prior year, but the improvement was significant enough to drive changes in prices of Stearic Acid. Thus, the prices improved effectively and hovered around USD 930.6/MT during mid of January 2021 in Indian market. However, Asia was also struggling to procure raw material Palm oil, which was fuming those days.
Europe
In Europe, Stearic Acid prices also encountered a steady rise, despite of the low demand from downstream segments. This price rise was led by accelerating raw material prices amidst severe global shortage. In addition, expensive imports from Asia also supported this price rise. However, the demand remained low from downstream automotive segment, as the second wave of COVID 19 resisted proper industrial activities and reduced the sales of automobiles across the region.
For the Quarter Ending December 2020
North America
With the consistent increment in prices of the feedstock Palm Oil, Stearic Acid prices in the US took an uptrend later in the quarter. The supply of palm oil tightened towards the end of the quarter when USA declared a straight ban on the imports from several Malaysian producers including Sime Darby Plantation Berhad and FGV Holdings, under the allegations of labor abuse. As the supply of Palm Oil from its largest exporter Malaysia is bound to decrease, prices of derivative Stearic Acid are expected to remain firm in the near-term. Rising Brent crude is further anticipated to support the price trend in the region at least till Q1 2021.
Asia
Demand for Stearic Acid in the Asian market remained firm as various countries like China and India were heard utilizing their full capacities to make up for the loss incurred in H1 2020. Pick up in demand in India during the festive season in November also contributed to a prominent surge in its values. Consistent hike in the prices of feedstock palm oil across Southeast Asia has provided an astonishing upward push to the prices of Stearic Acid. With palm oil futures rising to an almost eight year high in December, and Indonesia levying an increase in the tax over its oil exports, price of Stearic Acid is expected to remain in a stable to firm range in H1 2021. The price for Rubber Grade Stearic Acid in India for the quarter ending December 2020 was averaged at USD 853 per MT.
Europe
Firm demand for Stearic Acid from the polymer and textile industry has sustained its rich market sentiments in Europe. As European Union is eyeing to reduce the imports of palm oil as it leads to increased deforestation activities, concerns of stressed availability of the feedstock has provided a forward push to the prices of Stearic Acid in the regional market. In early October, market fundamentals of Stearic Acid remained in a narrow range as various end-use industries kept operating their plants at reduced rates under fears of demand uncertainty. However, the plant utilization rates gradually improved under the optimism that prevailed from the consistent upward push in crude values.
