SunSirs: In mid February, the Market for Stearic Acid Was Volatile and Stronger

Price trend

According to the monitoring of the commodity market analysis system of SunSirs, the price of stearic acid was 8,450 RMB/ton after the Spring Festival, and before the Spring Festival, the price of stearic acid was 8,400 RMB/ton, an increase of 50 RMB/ton, an increase of 0.6% compared to before the Spring Festival and 2.8% compared to January 1st. Since 2024, the price of stearic acid had been fluctuating and rising.

Analysis review

Cost side: After the Spring Festival, the palm oil market first rose and then fell. February 21st was the highest point of palm oil prices this week at 7,590 RMB/ton, and then fell. As of February 23rd, palm oil prices were 7,490 RMB/ton, with a 3.74% increase this week.

Demand side: The downstream PVC spot market price was gradually increasing, with a price of 5,566 RMB/ton on February 18th and 5,580 RMB/ton on February 23rd, an increase of 0.25%. PVC entered the inventory accumulation period in mid February, and after the Spring Festival, factories resumed work on a large scale, with a rapid increase in operating rates. After the Spring Festival, the terminal steel tire industry started construction one after another, with a load rate of more than 60% for the semi steel tire industry and more than 50% for the full steel tire industry. Some steel tire enterprises were still parking their equipment, and it is expected that the start-up situation of the equipment will increase next week.

Market outlook

After the Spring Festival, the price of stearic acid showed a fluctuating upward trend, with upstream palm oil experiencing a fluctuating increase of 3.74%. Strong support had been provided from the cost of stearic acid, and downstream PVC had entered a period of inventory accumulation, with factories resuming work on a large scale. However, there was a large inventory of stearic acid on site and sufficient supply. It is expected that the market for stearic acid will be volatile and stronger in the near future.

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