For the Quarter Ending September 2024
North America
In Q3 2024, the North American Stearic Acid market experienced a steady increase in prices, driven by several key factors. Rising production costs in Southeast Asia, particularly due to concerns over palm oil production in major exporting countries, contributed to higher import costs for Stearic Acid.
Additionally, elevated freight charges and port congestion further impacted North American market prices. In Southeast Asia, particularly Malaysia and Indonesia, supplies of Stearic Acid were constrained by a shortage of palm oil. In Malaysia, palm oil prices surged by approximately 11% in late September 2024, following a 3.8% decline in production to 1.82 million tonnes. Further seasonal declines were anticipated, leading to a domestic shortage of Stearic Acid and increasing prices. In Indonesia, palm oil production fell by 2% in August 2024, exacerbating the supply issues. The government's decision to raise the palm oil content in biodiesel from 35% to 40% increased demand, further pushing palm oil prices up globally. Exports of palm oil products also dropped significantly, from 3,385 thousand tonnes in July to 2,241 thousand tonnes in August 2024, fueling the rise in Stearic Acid prices across the global market. Mexico saw notable price changes, with a 10% increase compared to the same quarter last year and a 4% rise from the previous quarter in 2024. A 2% price difference between the first and second halves of the quarter indicated a steady upward trend.
The quarter ended with Stearic Acid Rubber Grade priced at USD 1,425/MT CFR Veracruz. Overall, the pricing environment for Stearic Acid in North America during Q3 2024 reflected a significant upward trajectory.
South America
Throughout Q3 2024, the Stearic Acid market in South America experienced a significant uptrend in pricing, driven by multiple factors influencing the market dynamics. The 11% increase in prices from the same quarter last year was primarily propelled by rising feedstock costs, particularly in Southeast Asia. Factors such as reduced palm oil exports, production constraints, and port congestions in exporting countries contributed to the heightened production costs of Stearic Acid in the region. In Southeast Asia, particularly Malaysia and Indonesia, supplies of Stearic Acid were constrained by a shortage of palm oil. In Malaysia, palm oil prices surged by approximately 11% in late September 2024, following a 3.8% decline in production to 1.82 million tonnes. Further seasonal declines were anticipated, leading to a domestic shortage of Stearic Acid and increasing prices. In Indonesia, palm oil production fell by 2% in August 2024, exacerbating the supply issues. The government's decision to raise the palm oil content in biodiesel from 35% to 40% increased demand, further pushing palm oil prices up globally. Exports of palm oil products also dropped significantly, from 3,385 thousand tonnes in July to 2,241 thousand tonnes in August 2024, fueling the rise in Stearic Acid prices across the global market. Brazil witnessed the most substantial price changes, with a 4% increase from the previous quarter and a 2% price difference between the first and second half of Q3 2024. This trend indicates a steady rise in prices throughout the quarter, showcasing a positive pricing environment. The quarter-ending price of USD 1445/MT of Stearic Acid Rubber Grade CFR Santos in Brazil reflects the overall bullish sentiment in the market, driven by sustained demand, supply challenges, and external market influences.
APAC
In Q3 2024, the APAC region experienced a significant 16% increase in Stearic Acid prices compared to the same quarter last year, driven by multiple factors. Rising feedstock Palm Oil prices, up by 6% from the previous quarter, played a crucial role in influencing market prices. The region saw a 3% price increase from the first to the second half of the quarter, indicating a steady upward trend. In Southeast Asia, particularly Malaysia and Indonesia, supplies of Stearic Acid were constrained by a shortage of palm oil. In Malaysia, palm oil prices surged by approximately 11% in late September 2024, following a 3.8% decline in production to 1.82 million tonnes. Further seasonal declines were anticipated, leading to a domestic shortage of Stearic Acid and increasing prices. In Indonesia, palm oil production fell by 2% in August 2024, exacerbating the supply issues. The government's decision to raise the palm oil content in biodiesel from 35% to 40% increased demand, further pushing palm oil prices up globally. Exports of palm oil products also dropped significantly, from 3,385 thousand tonnes in July to 2,241 thousand tonnes in August 2024, fueling the rise in Stearic Acid prices across the global market. Japan, in particular, witnessed the highest price changes in the region. The market displayed notable seasonality trends, with prices reflecting a consistent increase. The correlation between rising Palm Oil costs and Stearic Acid pricing was evident, with a stable and positive pricing environment prevailing throughout the quarter. The quarter-ending price of Stearic Acid Rubber CFR Tokyo in Japan stood at USD 1170/MT, underscoring the overall positive pricing sentiment in the region. The market dynamics were predominantly driven by the incremental costs of production inputs, signaling a stable and optimistic outlook for the Stearic Acid market.
Europe
During Q3 2024, the Stearic Acid market in Europe experienced a notable shift in pricing dynamics, marked by a 1% increase from the same quarter last year. Factors influencing this uptick included rising feedstock Palm Oil costs in exporting regions, such as Southeast Asia, leading to heightened production expenses. Additionally, high freight charges contributed to the expensive inventories entering the European market, further driving up prices. The negative correlation of -7% from the previous quarter in 2024 highlighted the volatility in pricing trends. In Southeast Asia, particularly Malaysia and Indonesia, supplies of Stearic Acid were constrained by a shortage of palm oil. In Malaysia, palm oil prices surged by approximately 11% in late September 2024, following a 3.8% decline in production to 1.82 million tonnes. Further seasonal declines were anticipated, leading to a domestic shortage of Stearic Acid and increasing prices. In Indonesia, palm oil production fell by 2% in August 2024, exacerbating the supply issues. The government's decision to raise the palm oil content in biodiesel from 35% to 40% increased demand, further pushing palm oil prices up globally. Exports of palm oil products also dropped significantly, from 3,385 thousand tonnes in July to 2,241 thousand tonnes in August 2024, fueling the rise in Stearic Acid prices across the global market. In the Netherlands, the market witnessed the most significant price changes, with a 3% difference between the first and second half of the quarter. This fluctuation indicates a period of instability and uncertainty in pricing. The quarter-ending price of USD 1553/MT of Stearic Acid Rubber Grade CFR Rotterdam in the Netherlands reflects the overall increasing sentiment in the market, showcasing a positive trajectory despite the challenges faced. The pricing environment in Q3 2024 has been characterized by a notable upward trend, influenced by various supply and demand dynamics impacting the Stearic Acid market in Europe.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, the North American market for Stearic Acid saw a notable decline, driven by several key factors. Reduced demand from the automotive and rubber industries, ongoing disruptions in supply chains, and fluctuating prices of Palm Oil, which dropped around 9% in May 2024, collectively pushed Stearic Acid prices lower. The underperformance of the automotive sector, particularly in electric vehicles (EVs), exacerbated this trend. Geopolitical tensions and logistical issues in major shipping routes also contributed to increased freight costs, further impacting market conditions.
In the USA, where the market experienced the most significant price fluctuations in the region, the overall trend for the quarter was predominantly negative. Prices declined by 1% compared to the previous quarter of 2024 and showed a 1% reduction between the first and second halves of Q2 2024. Year-over-year prices remained stable, highlighting a recent softening in market demand and supply dynamics despite stability in annual comparisons.
Seasonal factors, such as reduced demand for summer tires, also influenced the downward trajectory of Stearic Acid prices. The close correlation between automotive sector fluctuations and Stearic Acid pricing underscored its crucial role in rubber manufacturing. Despite efforts to stabilize inventories, market sentiment remained negative, culminating in a quarter-ending price of USD 1280/MT for Stearic Acid Rubber Grade CFR New York. This consistent decline indicates a challenging pricing environment shaped by external economic factors and specific industry conditions.
APAC
In the second quarter of 2024, Stearic Acid prices in the APAC region experienced a predominantly positive trend, driven by several key factors. A stable yet variable cost of palm oil, the primary feedstock, influenced by moderate production expenses and global supply chain disruptions, served as the primary catalyst. Additionally, congestion at critical Asian trade routes like the Strait of Malacca and Singapore port led to a more than 50% increase in freight charges, further boosting Stearic Acid prices. Despite sluggish demand from downstream industries, notably the automotive sector due to the Daihatsu safety test scandal halting production earlier in the year, prices remained stable midway through the quarter.
Japan, experiencing the most significant price fluctuations, saw market dynamics heavily influenced by heightened freight costs and a weakened Japanese Yen, which depreciated nearly 10.25% against the USD in the first five months of 2024. Seasonal patterns typically result in subdued summer demand, but increased input expenses and renewed manufacturing optimism balanced this effect. Compared to the same period last year, Stearic Acid prices rose by 6%, indicating strong market fundamentals. Sequentially from the previous quarter in 2024, prices increased by 5%, reflecting a sustained upward trajectory. Intra-quarterly volatility was slight, with a 2% price difference between the first and second halves of the quarter.
As the quarter concluded, Stearic Acid Rubber CFR Tokyo recorded a price of USD 1100/MT, marking a culmination of consistent price hikes. Overall, the pricing environment in Japan during Q2 2024 was bolstered by higher input costs, logistical challenges, and strategic market responses, fostering a generally optimistic market sentiment.
Europe
Throughout the second quarter of 2024, the European market for Stearic Acid saw prices decline persistently. This trend, amounting to approximately 10.2%, was primarily driven by weak demand from the automotive industry despite facing challenges such as port congestions and strikes at German ports. Fluctuations in Palm Oil prices, which dropped about 9% in May and continued to vary in June, played a significant role in reducing production costs.
Germany, notably affected within the European market, experienced the most significant price fluctuations. Prices showed an overall negative trend, declining by 1% compared to the same quarter last year and by 4% compared to the previous quarter in 2024. The first half of Q2 saw a more pronounced decline of 6%, reflecting an increasingly pessimistic market sentiment.
Environmental disruptions, such as floods in Northern Europe and congestion at key Southeast Asian ports, exacerbated oversupply issues, further pushing prices downward. Despite improvements in the broader automotive sector, particularly in electric vehicles, reduced sales led to higher inventory levels. This surplus improved material availability among German suppliers and shortened delivery lead times.
Despite seasonal fluctuations typical in the European market, Stearic Acid prices in Germany consistently trended lower, culminating in a quarter-ending price of USD 1530/MT for Rubber Grade CFR Hamburg. This sustained decline underscores a challenging pricing environment influenced by complex market dynamics and external economic pressures.
South America
In the second quarter of 2024, Stearic Acid prices in South America experienced a notable decline, reflecting a tough market environment. Several factors contributed to this downward trend. The decrease in Palm Oil prices. Which depreciated by approximately 9% during May 2024 across Southeast Asia played a crucial role by lowering production costs, thereby influencing Stearic Acid prices. Additionally, disruptions in supply chains, seasonal variations, and decreased demand from various industries all contributed to the overall price decrease.
Brazil, which saw the most significant price changes in the region, reported a 4% decrease compared to the same quarter last year, and a 2% decrease from the previous quarter in 2024. The latter half of the quarter showed a further 1% decline compared to the first half. The quarter-end price for Stearic Acid Rubber Grade CFR Santos in Brazil was USD 1370/MT, reflecting the consistently negative pricing trend observed throughout the quarter.
This sustained price decline underscores the challenging conditions and bearish sentiment prevailing in the Stearic Acid market in South America during Q2 2024. Despite efforts to mitigate factors like supply chain disruptions and seasonal fluctuations, the market continued to face pressures that impacted pricing dynamics significantly.
For the Quarter Ending March 2024
North America
During the first quarter of 2024, the Stearic Acid market in North America displayed a combination of price fluctuations and stability. Prices saw a general upward trend across the region, driven by several factors. In the United States, prices rose by approximately 1% due to a scarcity of Palm Oil, heightened demand from the domestic Indonesian market, and strong automotive sector demand. The US market saw support from a 17% increase in automotive sales and robust demand from the summer tire sector. Elevated freight charges further impacted prices.
Limited supplies, disruptions in the supply chain due to truck driver protests, and rising Palm Oil prices also influenced the market. Automotive sector demand remained moderate, with a 22% decline in automotive sales noted in January 2024. However, nearshoring initiatives and positive sentiments during the festive season partly buoyed demand.
Overall, the Stearic Acid pricing environment in North America during Q1 2024 showed relative stability with some fluctuations. Prices mostly trended upwards, albeit with variations across markets. The market dynamics were shaped by factors such as feedstock costs, automotive sector demand, and supply chain disruptions. Despite the overall positive trajectory, demand levels varied, contributing to a more balanced market landscape.
Asia
The first quarter of 2024 brought a mix of trends for Stearic Acid pricing in the APAC region, characterized by overall stability with notable influences on market dynamics. Fluctuations in Palm Oil prices, the primary raw material for Stearic Acid production, played a significant role in shaping prices. Increasing Palm Oil costs, driven by factors like poor cultivation and high demand from the Biodiesel sector, elevated production expenses for Stearic Acid, consequently impacting prices upward. Furthermore, demand from downstream industries like automotive, soap and detergent, and rubber sectors also influenced Stearic Acid pricing. Automotive sector demand varied across regions, with some witnessing sales rebounds while others experienced slowdowns. Similarly, the soap and detergent industry's demand was subject to seasonal shifts, particularly with the conclusion of the winter season. Despite these factors, the overall pricing environment for Stearic Acid in the APAC region during Q1 2024 remained stable, albeit with some fluctuations due to supply and demand dynamics. Notably, in South Korea, there were notable price changes for Stearic Acid during the quarter. While prices exhibited a positive trend compared to the same period last year, there was a slight decline compared to the previous quarter in 2024, indicating market stabilization. The latest quarter-ending price for Stearic Acid (Rubber grade) CFR Incheon in South Korea stood at USD 1286/MT. Overall, the pricing environment for Stearic Acid in South Korea during Q1 2024 showed positivity with an annual increase, coupled with indications of market stabilization in the shorter term.
Europe
Throughout the first quarter of 2024, Stearic Acid prices in the European market exhibited some fluctuations. Overall, the pricing landscape for Stearic Acid remained relatively stable, with moderate demand observed from the automotive and soap and detergent sectors. In February 2024, Stearic Acid prices in the Netherlands saw a slight uptick of approximately 2%. This increase can be traced back to costly imports from Malaysia, where Stearic Acid prices rose by a similar margin. The escalation in Malaysian prices was primarily driven by heightened production costs stemming from increased Palm Oil prices. Moreover, delays in cargo arrivals due to the Red Sea crisis further exacerbated supply conditions in the Netherlands. Despite the market's overall stability, the Dutch Stearic Acid sector faced challenges posed by constrained supplies and rising production expenses. Automotive sector demand remained moderate, buoyed by an uptick in electric vehicle sales. However, demand from the soap and detergent industry waned due to seasonal factors, notably the peak winter season. Analyzing price trends, Stearic Acid prices in the European market showed an increase compared to the same quarter of the previous year. Nevertheless, there was a slight dip in prices compared to the preceding quarter in 2024. In summary, the pricing environment for Stearic Acid in Europe during Q1 2024 was characterized by stability alongside moderate demand. The Netherlands witnessed a marginal price increase, driven by costly imports and constrained supplies.
South America
During the opening quarter of 2024, the Stearic Acid market in South America remained bullish, with prices experiencing an overall increase of approximately 5% during this period. This upward trend was primarily driven by the scarcity of Palm Oil, a key feedstock sourced from Southeast Asia, which escalated production costs across the region. Additionally, disruptions at major waterways resulted in heightened freight costs, leading to the arrival of costly inventories in the South American market. Despite initially low demand in the Brazilian market, marked by an 11% decline in automotive sales, sentiments gradually shifted. In February, automotive sales saw a modest increase of around 2%. Furthermore, in March 2024, a leading automotive player in Brazil announced plans to invest approximately EUR 56.4 million in hybrid vehicle manufacturing, fostering a positive outlook. Overall, the South American Stearic Acid market remained influenced by the limited availability of Palm Oil, attributed to factors such as poor farming practices, aging Palm trees, and high demand for Biodiesel. These factors contributed to increased production costs of Stearic Acid and the influx of expensive inventory into the South American market. Moreover, internal logistical challenges, including seasonal rainy weather and delays in ship arrivals, further elevated prices of Stearic Acid.
For the Quarter Ending December 2023
North America
The North American market for Stearic Acid in the fourth quarter of 2023 witnessed several key factors that influenced prices. Firstly, the market experienced a bearish trend, with high supply levels due to inexpensive imports from Malaysia and increased production costs in the country.
Additionally, the festive season in December led to an increase in demand from the downstream winter tire and automotive industry. However, the demand from the automotive sector was uncertain, dependent on economic conditions and the growth of electric vehicle sales. Looking at the performance of Stearic Acid prices in the North American market, there was a 4% decrease from the previous quarter (Q3) to the current quarter (Q4) of 2023.
This decline can be explained by the bearish market sentiment and the aforementioned factors affecting supply and demand dynamics. The market situation of Stearic Acid also witnessed the impact of nearshoring activities in Mexico where automotive manufacturers continued setting up bases in Mexico as input costs remained at an all-time high.
APAC
The APAC region witnessed an overall stable market situation in the prices of Stearic Acid throughout the 4th quarter of 2023. The stable supply of Stearic Acid from exporting countries like Indonesia and Malaysia contributed to the overall market situation. Despite the depreciation of prices in the feedstock Palm Oil, the demand for Stearic Acid remained high, especially from the winter tire sector in the West. This increased demand helped to maintain stable prices in the market. Among the countries in the APAC region, South Korea experienced a significant appreciation of its currency, the South Korean Won, by 4.17% against the USD in November. This currency fluctuation may have impacted on the pricing of Stearic Acid in the country. The trend, seasonality, and correlation of Stearic Acid prices in South Korea during this quarter were not provided in the information. Looking at the price comparison, there was no mention of the percentage change in prices from the same quarter of the previous year. However, the information states that there was a 5% decrease in prices from the previous quarter of 2023. In summary, the APAC region experienced a stable supply and moderate prices for Stearic Acid in the current quarter of 2023. The high demand from the winter tire sector in the West and stable supplies from Indonesia and Malaysia contributed to the stable prices. South Korea saw a significant appreciation in its currency, which may have impacted the pricing of Stearic Acid in the country. The specific trends, seasonality, and correlations of prices in South Korea were not provided. The latest price of Stearic Acid (Rubber grade) CFR Incheon in South Korea for the current quarter is USD 1327/MT.
Europe
The fourth quarter of 2023 for Stearic Acid in the European region was characterized by various factors that influenced the market and prices. Firstly, there was a moderate demand for Stearic Acid, primarily driven by the winter tire industry due to the progressing winter season. Additionally, the overall declining industrial activities called for shorter sizes of inventories, resulting in higher prices. However, the demand from the downstream automotive industry was only moderate, with automotive sales in the Netherlands showing no significant changes. In terms of supply, inventories were recorded to be low, as smaller sizes were placed in the exporting market. No plant shutdowns were reported during this period. One country that experienced notable changes in prices was the Netherlands. The prices of Stearic Acid (Rubber Grade) in Rotterdam witnessed a marginal inclination of approximately 1.3% in the Dutch market. This increase can be attributed to the moderate demand from the winter tire industry and the overall competitiveness of the market. However, it is important to note that the cosmetic grade of Stearic Acid remained subdued as the winter season progressed. In terms of price trends, the selected country of the Netherlands saw a 14% decrease in prices compared to the same quarter of the previous year. The price change from the third quarter to the fourth quarter of 2023 was 1%, indicating a slight increase. In conclusion, the European market for Stearic Acid in the fourth quarter of 2023 was influenced by factors such as moderate demand from the winter tire industry, declining industrial activities, and low supply of the product. The Netherlands experienced a slight increase in prices, with the cosmetic grade remaining subdued. The price trend in the selected country showed a decrease compared to the previous year, a slight increase from the previous quarter, and no available comparison for the first and second half of the quarter. The latest price of Stearic Acid (Rubber Grade) in Rotterdam, Netherlands, for the current quarter is USD 1581/MT.
South America
The South American market for Stearic Acid largely witnessed a mixed market situation during the fourth quarter of 2023. Initially prices of the product were largely driven by low prices of inventories from the exporting Malaysian and Indonesian markets as prices of feedstock Palm Oil were recorded to have largely subdued, easing production costs. The demand from the downstream rubber sector of the construction and automotive industry was recorded to have largely subdued which compelled the depreciation of prices of the product as existing inventories were simply not being consumed. However, towards the end of 2023, the market for Stearic Acid witnessed a bullish situation as demand from the electric automotive industry increased as investment sentiments turned positive. This was particularly evidenced by increased funding for setting up manufacturing bases to improve investment sentiments. This also moderately improved the construction industry in Brazil which consequently also increased the demand from the secondary construction industry. However, trading activities remained largely cautious as freight charges soared with most freight companies being likely to hike base fares.
