Mit-Ivy is a well-known fine chemicals and pharmaceutical intermediates manufacturer with strong R&D support in China. 

We are an integrated industry and trade company.Mainly involved, Indole, Thiophene,Fine chemicals，dye， Pyrimidine, Aniline, Chlorine products，organic intermediates and so on.

Payment：accept all payment   have REACH Certification  

TEL:008613805212761    E-MAIL:info@mit-ivy.com         http://www.mit-ivy.com

This week, the cost end price fluctuated obviously, rising first and then falling, stearic acid factory at any time to pull up, but the downstream and terminal demand is not enough to follow up, as the cost end support is limited, stearic acid transaction is still not high. At present, the raw material market is volatile and short, and the price lacks support. With the arrival of the summer maintenance season, the downstream factory has a short-term shutdown plan, and the demand for stearic acid is weak, so the market is easy to fall but difficult to rise.

This week, stearic acid factory mainstream quote 8500-8600 yuan/ton, while the market mainstream price transaction little change, mainstream transaction at 8100-8200 yuan/ton, this week with the price of palm oil rising day after day, stearic acid factory price increased, downstream in the buy up do not buy down under the influence of the mentality, the market transaction increased, However, the demand side still maintains a small number of times to buy, most bearish mentality, so the stearic acid price transaction change little.

Stearic acid prices rose this week, mainly due to the rise in raw material prices, palm oil prices rose, mainly due to the following factors:

1. Impacts of climate on major palm oil producing countries

The market is talking about El Nino weather phenomenon. According to related news, some parts of Southeast Asia are currently suffering from a severe heat wave. A potential El Nino brings drought that could affect plantations in Indonesia and Malaysia later this year.

Palm oil prices were buoyed by news that palm fruit yields are likely to decline as a result of the direct impact of climate change.

2. Supply from the Black Sea region affects palm oil prices

Amid renewed tensions between Russia and Ukraine, there is widespread concern about the Black Sea grain export deal on May 18, and there is likely to be some uncertainty about Ukrainian sunflower oil exports, which also has a positive impact on palm oil prices.

Palm oil raw material price rose and then fell, stearic acid factory price increase limited, factory to benefit the terminal, transaction focus is still not high. This week, the end user sentiment is not reduced, due to the reality of low demand, stearic acid market more stalemate operation, only partial talks appear loose signs.

This week, downstream PVC products enterprises started to recover, most of the recovery to the level before May Day. From the point of view of domestic PVC profile enterprises, the profile enterprises started stable within the week, and there was no obvious change. In terms of raw materials, the inventory cycle ranges from 12 to 30 days. Product enterprises are subject to the lack of follow-up orders. In the face of high price of raw materials, they seek low price for the transaction. Product inventory: the inventory cycle ranges from 15 to 25 days. Part of the inventory is for orders to be delivered. Some large enterprises have high product inventory. The overall profile product performance is general, running flat, still in low demand.

This week Shandong tire sample enterprise finished product inventory rose, as of May 11, 2023, half steel tire sample enterprise average inventory turnover days in 36.33 days, compared to last week +0.28 days; The average inventory turnover days of all steel tire sample enterprises were 38.75 days, compared with last week +0.56 days. After the “May Day” holiday, the maintenance enterprises originally planned to resume production, and the capacity utilization rate increased to a higher level. In addition, due to the renewed rumors of enterprise price reduction and promotion, some merchants’ enthusiasm to purchase goods decreased in the short term, and more wait and see and wait for the guidance of enterprise policy, resulting in the increase of enterprise inventory reserve.

At present, the upstream cost support is uncertain, and with the gradual rise of temperature, the downstream and terminal plants are expected to decrease negatively, and the corresponding days of raw material stocking are gradually reduced. At the present stage, the new single fault, traders are not willing to take orders, most factories in the short term to digest inventory. Therefore, overall, demand is still the main reason to drag the stearic acid market price, the market is gradually entering the downward channel.