Global Magnesium Stearate Prices Likely to Rise in October 2023 Amidst Rising Demand

Comparing the market trend of the previous month, the price values of Magnesium Stearate as per the market participants would rebound as October 2023 approaches. The demand for Magnesium Stearate, a typical excipient used in pharmaceutical products, has recently increased consumption as a binder in medicinal sectors, and the pharmaceutical sector has grown. This suggests that price growth may continue to follow its upward trend throughout the beginning of the fourth quarter, and manufacturers had to keep enough stock of Magnesium Stearate in their warehouses to keep up with the steadily evolving demand.

Until the entire month of September, there was a significant drop in Magnesium Stearate prices due to weakened consumer demand, resulting in a drop in purchasing activity. However, the surge in the cost of its upstream Stearic acid, within the Asia Pacific region accounting for the largest Stearic Acid producers, narrowed the spread chart. Further contributing to this, the ascending costs of inputs, such as surging energy prices, kept the manufacturing activity on the upper side for upstream materials, affecting the availability of its downstream products because of weakened customer inquiries. This, however, kept the overall market dynamics for certain excipients, including Magnesium Stearate, on the downside until the final weeks of September 2023.

However, moving towards the beginning of Q4, the market participants now anticipate that as q3 ends and October begins, the prices of Magnesium Stearate might rise at a moderate level. Concurrently, supplies among the major exporting nations might remain sufficient to meet the overall arriving inquiries, which is expected to fuel the upward trajectory of Magnesium Stearate across North America and other importing nations.

Furthermore, the world's leading exporter, China, considering excipients, is on the edge of a temporary production slowdown due to upcoming events. This means the arrival of imminent occasions and holidays might delay shipments or cargoes to the importing nations, which will likely disrupt the Magnesium Stearate's trade activity. The impending Mid-Autumn Festival, which will last for eight days, the National Day holiday, and the Hangzhou Asian Games are all anticipated to have an impact on the supply chain momentum in both the domestic and international markets for all the goods including in the pharma excipient sector such as Magnesium Stearate. This is projected to result in a logistical imbalance because exporting finished goods could put pressure on the supply chain. The retailers also focused on destocking their previous stockpiles at a higher price than anticipated. This was further supported by depleting their stock of Magnesium Stearate before the start of the following quarter so they could restock their shelves with fresher stock levels. 

Apart from that, environmental regulations and higher cost of energy could also lead to higher excipient prices, as many excipients are manufactured using energy-intensive processes, which might result in a higher cost of finished goods among retailers. Additionally, the future availability of downstream products because of the arrival of the winter season might also be delayed owing to the consumption, which is expected to rise. This whole is projected to keep the prices of Magnesium Stearate and other excipients on the upper side in forthcoming months.