SunSirs: The Price of Stearic Acid Slightly Increased in February

Price trend

According to the monitoring of the commodity market analysis system of SunSirs, the price of stearic acid 1840 in February was between 7,850 RMB/ton and 9,000 RMB/ton, with the mainstream price around 8,500 yuan, an increase of 50 yuan per ton compared to before the Spring Festival, with a growth rate of 0.6%. The price of imported stearic acid in Indonesia ranged from 9,500 RMB/ton to 8,200 RMB/ton.

Analysis review

Cost side: Starting from February 1st, the Malaysian palm oil market had declined, with sluggish market transactions and a weak decline in the palm oil market. After the holiday, palm oil rose and spot prices followed suit. In February, the overall palm oil market oscillated and rose. After the holiday, stearic acid factories had gradually resumed work, with an industry load rate of around 45%. Overall, the cost was relatively stronger in the face of spot support.

Demand side: The PVC spot market prices were stable with an increase after the year. As of February 29th, the spot market situation was average, and the trading situation was relatively light. The PVC industry was operating at a high level. As of February 29th,the on-site inventory was about 580,000 tons, an increase of over 14% compared to before the holiday, indicating sufficient inventory.

Market outlook

In February, the price of stearic acid showed a fluctuating upward trend, and the demand for concentrated consumption of upstream oils and fats increased. The palm oil market continued to remain strong, and the cost faced strong support from spot goods. However, imported goods were gradually entering the port, and there was ample inventory in the stearic acid market. The downstream PVC trading situation was relatively light, mainly focused on consumption and storage. Therefore, it is expected that the stearic acid market will remain stable in the short term.

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