【Introduction】Following the National Day holiday, the domestic stearic acid market has exhibited narrow fluctuations with negotiable transactions. Supported by the persistently high prices of palm oil, a key raw material, producers face significant cost pressures and maintain strong intentions to hold prices firm, resulting in rigid offers. However, due to lackluster purchasing enthusiasm from downstream sectors, transaction centers have edged slightly lower. As of press time, the negotiated price for domestically produced Grade 1 stearic acid in East China stood at RMB 9,800–10,000 per ton, representing a decline of 1.98% compared to pre-holiday levels.
1. High Raw Material Prices Impose Significant Cost Pressure on Stearic Acid Producers
In the raw materials market, 52-degree palm oil in Zhangjiagang benefited from tightened supply in overseas production regions and strengthening crude oil prices, leading to upward volatility and repeated surges to phase highs. Traders’ willingness to sell at low prices diminished; meanwhile, some downstream users and intermediaries entered the market to restock during price dips, temporarily improving trading sentiment and pushing up negotiation centers. However, overall demand remained tepid, with downstream factories primarily making small, necessity-based replenishment orders and showing caution in chasing higher prices. Substantive consumption growth remained insufficient, causing the market to pull back after reaching peak levels.
2. Loose Supply-Demand Dynamics Result in Weak Fundamental Support
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