SunSirs: There Were Signs of a Pullback after the Price of Stearic Acid Continued to Rise in March

Price trend

According to the monitoring of the commodity market analysis system of SunSirs, after the continuous rise of stearic acid prices in March, there were signs of a pullback. As of March 29, the mainstream price of domestic stearic acid (1840) was 17,700 RMB/ton, a decrease of 1.58% from last week, an increase of 1.78% from March 1, and an increase of 4.62% from January.

Analysis review

Cost side: In March, palm oil prices first rose and then fell, with the highest point overall rising by nearly 7%, and the average price rising to 8,400 RMB/ton. At the end of the month, the external futures market weakened, and the oil palm oil futures market fell one after another, with spot prices mainly following the downward trend. The average price of palm oil in the market had dropped to 8,260 RMB/ton, a decrease of over 3%.

Demand side: The PVC spot market prices had fluctuated this month and ended with a downward trend. The price range was between 5,608 RMB/ton and 5,580 RMB/ton. From the demand side, although domestic demand had basically recovered to pre holiday normal state, the overall performance was still slightly weak. The market inquiry enthusiasm was average, and downstream markets were mostly wait-and-see, just purchasing goods on demand.

Market outlook

The overall upstream performance of stearic acid in March was still good, with firm support provided by the cost side at the beginning of the month. At the end of the month, the external futures market weakened, and the support from the cost side gradually weakened. The import volume of stearic acid in February was 18,337.57 tons, and the imported goods continued to arrive at the port, while inventory remained abundant. However, downstream factories had shown some resistance towards high priced raw materials during procurement. It is expected that the stearic acid market will remain strong in April due to the impact of lower costs.

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