Stearic Acid Prices Overview

Market Overview

Quarterly Update on Global Stearic Acid Market
 
For the Quarter Ending December 2020
 
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.
 
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. 

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Methodology

ChemAnalyst gathers information through primary research surveys conducted with various Stearic Acid manufacturers, spread across the domestic and international market, suppliers and dealers/distributors to gain insights into value-chains and demand-supply scenario to assess the market situation. Thorough study of company’s annual reports and secondary sources such as exhaustive search on credible paid databases, including our internal database is done to verify the information. All the collected information is analyzed, evaluated and presented in chronological order to depict a meaningful and clear picture of the concerned market.
 
Our dedicated team of industry experts comprehensively monitors and analyzes various aspects of the Global Stearic Acid market. The team analyzes various industrial segments, strategic viewpoints and provides an analysis of the industry’s performance in the long run. This would enable our clients in efficiently plan their future investments, mitigate risk, understand the cost dynamics and strike out a balance amidst market volatility.
 
Critical examination of the impact of COVID-19 pandemic on the global supply chains and shift in demand patterns with change in buying behavior of consumers across the globe.
 
Several ongoing development projects across industries are tracked, followed by the details of major projects in the development stage, which can positively or negatively influence Global Stearic Acid market.
 
Pricing is captured through exhaustive primary interviews with domestic and international manufacturers, traders and importers and customers on weekly, monthly and yearly basis.
 

Finally, region-specific markets for Stearic Acid are analyzed and region-wise demand pattern is tracked.

About

Stearic Acid, also known as octadecanoic acid is a long-chain fatty acid. Stearic Acid is a waxy solid possessing a mild odor at room temperature. The product is widely demanded in various end-use industries due to its thickening and emulsifying properties. Stearic Acid is majorly utilized for internal lubrication and adhesion in the rubber manufacturing process. Besides, it even finds extensive applications in several other fields like cosmetic industry, food industry, pharmaceutical industry and others. Due to its ideal properties, it is often used as a base for producing other fatty acid ingredients. Owing to its ideal cleansing and surfactants properties Stearic Acid is also widely used in personal care products. Stearic Acid is mainly a derivative of palm oil, but it can also be derived from several other sources like corn and coconut oil.  It is commercially prepared by the separation and hydrogenation of fats. Stearic Acid in its commercial form is available as a mixture of stearic acid (C-18) and palmitic acid (C-16). However, it can further be purified as per the required industrial specifications.