According to the monitoring of the commodity market analysis system of Business Society, the stearic acid market showed a trend of first falling and then rising this month. The domestic average price of stearic acid was 8220 yuan/ton on January 1, and 17675 yuan/ton on January 31, with a price increase of 1.82% during the period.

Cause analysis

Cost side: After New Year’s Day, the palm oil market has declined one after another, and after the decline, it has rebounded, mainly oscillating upwards. As the Spring Festival approaches, the stocking market for terminal catering enterprises has started, with demand supporting, and the palm oil market continues to rise. Malaysian palm oil in the external market is currently in a period of reduced production, with bullish support and a significant increase in palm oil prices.

Demand side: Downstream PVC spot market prices first fell and then rose, and overall prices fell. In the first half of this month, the spot market price of PVC fell. The enthusiasm for market inquiries is average, and market transactions are light. In the middle of the month, the trading situation was average. In the latter half of the month, the spot market stopped falling and rose, and the futures market experienced four consecutive rises, driving confidence in the spot market and improving the trading atmosphere. PVC maintenance has gradually resumed, and the operating rate has increased compared to December. In mid to early January, the load rate of the domestic semi steel tire industry was around 7.8 floors, while the load rate of the full steel tire industry was around 6.2 floors. But as the Spring Festival approaches, some steel tire companies will start their holidays in late January, but some steel tire companies are still operating at high loads to prepare for post holiday shipments.

Future Market Forecast

This month, the stearic acid market showed a trend of first falling and then rising. After the price of raw palm fell, it rebounded and began to fluctuate and rise. Therefore, it has provided favorable support for the cost of stearic acid. Although the downstream device load has increased compared to December, the on-site inventory is loose, and the market purchases stearic acid spot on demand. Overall, it is expected that the market for stearic acid will mainly fluctuate in the later stage.