As of mid-October, Stearic Acid prices in major Asian markets have witnessed a steady increase, with Indonesia and China both showing firmer trends driven by tighter feedstock availability, government policy adjustments, and improving downstream demand.
Stearic Acid prices in Indonesia surged 1.2% FOB-Jakarta, reversing their prior downward trend on changing dynamics in the palm oil sector. The government's proposal to limit exports of crude palm oil (CPO) directed additional feedstock toward biodiesel production and away from oleochemical producers, tightening the supply of palm oil. The military's acquisition of roughly 3.7 million hectares of palm plantations, particularly the shift of numerous plantation areas to state-owned Agrinas Palma Nusantara, limited private investment and led to decreased production maintenance, which ultimately dampened expectations for palm yield. This tighter feedstock availability increased production costs and encouraged Stearic Acid market sentiment.
On the demand side, the industrial sectors in Indonesia have shown new strength. The B50 biodiesel program is still buoying long-term palm derivative consumption, while demand for short-term procurement improved in advance of commodity manufacturing cycles for the festive season. Activity levels in the automotive sector remained solid, as it is a key consumer of Stearic Acid for use in tire and polymer manufacturing, and the economy appeared to be improving. Demand from cosmetics and personal care industries also improved, as manufacturers were replenishing inventories in advance of year-end sales implementations. Downstream buyers are actively purchasing again to secure supply in response to cost pressures and significant uncertainties over feedstock flow nation-wide.
In China, Stearic Acid price increased by 1.2% Ex-Shanghai, a result of tightening regional supply and a better appetite for buying. The pace of import arrivals out of Malaysia and Indonesia slowed as Southeast Asian producers focused on local market demand, whereas ongoing export activity out of China provided support for the price increases. Government published data indicated that during September, Stearic Acid imports were recorded at 400,265 MT, a month-on-month increase of 71.89%, while period exports were 263,808 MT which were 22.74% lower in comparison.
Demand downstream in China showed improvement after the National Day holidays, especially in personal care, rubber compounding, and candle manufacturing. A number of factories returned to production at increased rates, and traders were in a more positive mind-set attributed to the increase in feedstock palm oil pricing. Overall, the Asian Stearic Acid marketplace firmed in mid-October because of both cost related increases and decreases in imported volumes alongside recovering industrial demands.
According to 果酱视频's expectations, the rates of Stearic Acid are expected to show an upward trend in the coming sessions. This rise in Stearic Acid value is expected to be directly related to the ongoing continuous buildup of the commodity as witnessed by the market participants over the last few sessions. The global market demand is expected to positively impact the Stearic Acid demand. These factors would be crucial to determining the costs of the Stearic Acid element in the near term.
