For the Quarter Ending December 2024
North America
The North American Stearic Acid market in Q4 2024 saw significant price increases, driven primarily by supply-side pressures coupled with steady demand. Prices surged by 8% compared to Q3. The rise in prices was primarily due to a 10% increase in palm oil prices in Southeast Asia, driven by limited production and higher biodiesel demand. Additionally, freight costs rose by 7%, further contributing to higher overall production costs.
The market was also impacted by logistical disruptions, particularly the ILA strike, which led to delays in cargo unloading across North American ports, including in Mexico. These disruptions affected the timely delivery of Stearic Acid, exacerbating supply-side challenges and contributing to longer lead times. Despite these supply constraints, demand remained strong, particularly from the Mexican automotive sector, where new car sales grew by 7.03% year-on-year in October 2024. This robust demand supported continued consumption of Stearic Acid throughout the quarter.
As the quarter progressed, the impact of global palm oil supply tightening intensified, further elevating production costs and exerting upward pressure on Stearic Acid prices. In December, Stearic Acid (Rubber Grade) CFR Veracruz prices increased by 2% compared to November, reflecting the ongoing challenges in the supply chain and the broader tightening of palm oil supplies.
APAC
In Q4 2024, the Stearic Acid market in the APAC region experienced significant upward pressure, primarily due to a 10% rise in palm oil prices in Southeast Asia, particularly in Malaysia and Indonesia, which increased production costs. This, along with ongoing supply constraints from reduced palm oil availability, resulted in limited Stearic Acid production across key markets like Japan. Freight costs surged as well, exacerbating supply chain challenges, and contributing to higher import costs. Demand conditions showed modest improvements, particularly from the automotive sector, but overall demand remained subdued, with limited impact on price dynamics. Production disruptions in Southeast Asia, driven by adverse weather and shifts in palm oil usage for biodiesel, compounded the supply shortage. As the quarter progressed, inventory levels remained tight, with suppliers reluctant to negotiate on prices, further contributing to the market's upward momentum. While demand from downstream industries like rubber was mixed, these challenges placed significant strain on market participants, who faced difficulties in managing costs, securing sufficient stocks, and navigating uncertain production and logistical conditions.
Europe
The European Stearic Acid market in Q4 2024 experienced a significant 6% price increase compared to Q3, driven by a rise in palm oil production costs in Southeast Asia. A surge in palm oil prices, combined with limited production in Malaysia and Indonesia, resulted in higher costs for Stearic Acid manufacturing. Although demand remained relatively muted, particularly from the automotive and rubber industries, price levels remained elevated due to tight supply. The automotive sector's underperformance, especially in electric vehicle markets, continued to affect demand for rubber, a major end-use for Stearic Acid. Freight costs also contributed to the increase in overall market prices, with logistical challenges at European ports further exacerbating supply chain disruptions. By the end of December, Stearic Acid prices in Rotterdam showed a slight decline of 1%, although the overall quarter saw a price rise. Despite improvements in downstream demand in early December, suppliers focused on moving cargoes due to financial year-end pressures. Overall, market participants are facing challenges from high production costs, tight supply, and subdued demand, particularly from the automotive and rubber sectors.
South America
The South American Stearic Acid market, particularly in Brazil, experienced a notable uptick in Q4 2024, driven by increased production levels from Southeast Asia, including Malaysia and Indonesia, as well as rising palm oil prices. The Brazilian market saw a 7% increase in prices compared to Q3 2024, with Stearic Acid (Rubber Grade CFR Santos) reaching historically high levels in early December. However, imports faced delays due to strikes at Santos port, impacting supply timelines. The automotive sector saw growth, with vehicle sales in Brazil experiencing a significant surge in October 2024, boosting demand for Stearic Acid, particularly in rubber processing. In addition, the US market also contributed to higher price levels in Brazil due to similar upward trends. Palm oil production costs surged due to a combination of policy changes and weather disruptions in Southeast Asia, tightening global supply. Despite the challenges, Stearic Acid demand remained resilient, with ongoing support from industries such as automotive and rubber. By the end of December, however, Stearic Acid prices saw a slight decline of 0.3% compared to the beginning of the quarter, reflecting the volatile market conditions. These developments indicate the market’s fragility in adjusting to both supply chain disruptions and price fluctuations.
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.
