SunSirs: The Price of Stearic Acid had Slightly Declined This Week

Price trend

According to the monitoring of the commodity market analysis system of SunSirs, the price of stearic acid haD slightly declined this week. As of April 7th, the mainstream price of domestic stearic acid (1840) was 8,560 RMB/ton, a decrease of 0.47% from last week, an increase of 1.78% from March 1st, and an increase of 4.14% from January.

Analysis review

Cost side: Malaysian palm oil inventories were low in the external market, exports had improved, and the Malaysian palm oil futures market was rising. Supported by bullish sentiment, the domestic palm oil spot market had risen significantly, with an average market price of around 8,660 RMB/ton, up 12.06% from early March. In April, the import volume of soybeans to ports gradually increased, and South American soybeans were listed one after another. The supply was loose, and the price of soybean oil palm oil rose under pressure.

Demand side: On March 1st, the average domestic PVC price was 5,608 RMB/ton, and on April 7th, the average price was 5,530 RMB/ton, with a price drop of 1.39%. The operating load of PVC equipment had slightly increased this week; Downstream demand was still dominated by rigid demand, and there were no obvious positive factors in the market. It is expected that PVC spot prices will continue to consolidate to be weaker in the short term.

Market outlook

Analysts from SunSirs believe that as the palm oil market slows down in April, the support for the cost of stearic acid will gradually weaken. There is ample supply on the market, and purchasing enthusiasm will decrease. Downstream markets are more wait-and-see, and transactions tend to be cautious. It is expected that the overall operation of the stearic acid market will remain stable without significant fluctuations next week.

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