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Asia-U.S. Magnesium Stearate Prices Fall to a Two-Month Low as Feedstock Rates Plunge
Asia-U.S. Magnesium Stearate Prices Fall to a Two-Month Low as Feedstock Rates Plunge

Asia-U.S. Magnesium Stearate Prices Fall to a Two-Month Low as Feedstock Rates Plunge

  • 15-Dec-2022 11:05 AM
  • Journalist: Patrick Knight

The price of Magnesium Stearate is showcasing a declining trend globally during December. Plummeting feedstock costs and weak demand for the product from end-user manufacturing sectors support the price drop in the global market. A recent assessment shows a significant dip in Magnesium Stearate prices across China and U.S.

At the onset of December 2022, Chinese Magnesium Stearate prices fell below the mark to reach a two-month low due to a decline in production costs. The reduced cost of feedstock such as Magnesium salt and Triple Pressed Stearic Acid results in lessening manufacturing costs. Some suppliers insisted on set pricing on cost support; however, buyers have been reluctant to place orders, which is anticipated to put prices under pressure in the short term. The economic slump weighed on local and global demand, resulting in weak demand for Magnesium Stearate and an overstock in the Chinese domestic market. As trade kept muted in China quiet since November, backed by Covid-19 limitations, several other factories marginally dropped their Magnesium Stearate offers, while others were trying to bargain their offers down in case of genuine orders. Overseas purchases have been hindered by the recent strong surge in the Chinese currency, with the Yuan's cumulative exchange rate rising by around 4.58% from early November to mid-December.

Current prices are also lower than the January-November average prices. Thus, December prices for Chinese Magnesium Stearate are now around 5.4% below November, according to the ChemAnalyst team.

Likewise, Magnesium Stearate prices in the U.S. are recently at breakeven levels with a decrement of about 6.3% in mid-December, with some traders facing margin losses. The Asian market is a major global Magnesium Stearate supplier, with markets like North America depending heavily on Asian imports to meet domestic requirements. While some Asian producers have cut new production to clear their existing stockpiles, this had a limited impact on the U.S. Magnesium Stearate market as the traders continue to face rising inventories amid lackluster demand from the end-user cosmetic and pharmaceutical sector.

According to ChemAnalyst, Global Magnesium Stearate prices may leap toward the higher side in the first quarter of 2023 as demand from end-user industries may pick up after the Christmas holidays end.

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