Q1 2024
In the first quarter of 2024, stearic acid prices averaged around USD 970 per metric ton. This increase was largely due to significant production disruptions in key manufacturing regions caused by extreme weather events and logistical challenges. These disruptions resulted in a decline of approximately 1 million metric tons in overall production, straining supply. Concurrently, strong demand from the personal care and food industries, driven by rising consumer preferences for products containing natural ingredients, further exacerbated the price hikes. The combination of limited supply and robust demand created a challenging environment for procurement and pricing strategies.
Q2 2024
During the first half of Q2 2024, the stearic acid market continued to grapple with production challenges stemming from ongoing weather-related issues and supply chain disruptions. Despite these hurdles, demand from the personal care sector remained strong, with a reported 3% increase in consumption, particularly for products emphasizing natural and organic formulations. By May 2024, improved production rates began to ease some of the pressure on prices, leading to a degree of stabilization in the market. However, the overall supply dynamics remained fragile, keeping stakeholders cautious about future pricing trends.
Q3 2024
As of August 2024, stearic acid prices are experiencing significant fluctuations, currently averaging around USD 1,070 per metric ton in Malaysia. This rise in prices reflects tight supply conditions coupled with steady demand from the personal care and food applications. Factors contributing to this price movement include ongoing global supply chain disruptions, including transportation challenges and delays in raw material availability. The demand for stearic acid remains robust, particularly in formulations for cosmetics, soaps, and food products, further influencing the upward price trajectory.
Q4 2024
Looking ahead to Q4 2024 and beyond, a partial recovery in stearic acid production is anticipated as weather conditions stabilize and labor-related challenges are addressed. However, the market is expected to remain volatile through 2030. Key influences on market stability will include ongoing climate change impacts that affect agricultural and industrial production, shifts in trade policies that may impact sourcing and logistics, and evolving consumer preferences that increasingly favor sustainable and natural products. Companies will need to navigate these complexities carefully to adapt their strategies and maintain competitiveness in the stearic acid market.