Stearic Acid: India Market Outlook
The Indian Stearic Acid market has shown a steady decline in prices over the past four months, with rates falling from Approx ₹135 per kg in March 2025 to ₹111 per kg by June 2025. This continuous downward trend was mainly driven by softening demand from key downstream sectors such as soaps, detergents, rubber processing, and cosmetics. Increased availability of low-cost imports from Southeast Asian countries like Malaysia and Indonesia also intensified competition and kept domestic prices under pressure.

Indian Stearic Acid Market Forecast (July–September 2025)

Projected Price Range

₹100 – ₹115 per kg

Primary Factors Expected to Keep Prices Low

  • Soft Demand from End-Use Sectors: Consumption from industries such as soaps, detergents, rubber processing, and cosmetics is likely to remain sluggish.
  • Higher Import Volumes: Increased supply of low-cost Stearic Acid from Southeast Asian countries like Malaysia and Indonesia will continue to weigh on domestic prices.
  • Seasonal Monsoon Effect: The ongoing monsoon season typically slows industrial operations, especially in sectors like construction and automotive, further dampening short-term demand.

Factors Supporting a Possible Price Recovery by September

  • Post-Monsoon Industrial Recovery: As the monsoon tapers off, industrial activity is expected to pick up, especially from rubber and FMCG sectors.
  • Festive Season Restocking: Manufacturers in the FMCG space may begin restocking ahead of the festive season, offering some demand-side support.
  • Currency Impact: A moderate depreciation of the Indian Rupee against the US dollar could lead to slightly higher import costs, providing limited upward pressure on domestic prices.

Overall Outlook for the Quarter
The market is expected to remain largely bearish during most of the quarter, with gradual signs of stabilisation or minor recovery likely emerging towards the end of September.

Stearic Acid: China Market Outlook
The stearic acid market in China has experienced a noticeable and consistent decline in prices. At the end of March 2025, stearic acid prices were positioned at $1417 /ton. The market saw a brief period of stability and even a slight increase, peaking at $1444 /ton in early April. However, this upward momentum was short-lived. Starting in early May, the market entered a phase of sharp declines. Prices dropped in several steps: first to around $1389 /ton, then to $1236 /ton by mid-May, and finally settling at $1208 /ton by June 21. From that point through June 26, the price remained unchanged, indicating a new level of stability after the previous volatility.

Key Drivers Behind the Trend

  • Oversupply: Production levels remained high while demand growth was limited, leading to increased inventory and pressure to reduce prices.
  • Subdued Demand: Downstream industries such as rubber, plastics, and construction were not actively increasing their purchases, which kept demand soft and further weighed on prices.
  • Market Caution: With both supply and inventory levels high and raw material costs dropping, many buyers adopted a wait-and-see approach, only purchasing when necessary and avoiding speculative buying.

Stearic Acid: Major Import and Export Markets
China imports stearic acid primarily from Indonesia and Malaysia; while simultaneously exporting to Thailand, rest Thailand imports stearic acid from Indonesia and Malaysia. In a similar pattern, while the US exports stearic acid to neighbouring countries like Canada and Mexico, it remains largely dependent on imports from Indonesia and Malaysia. Russia, too, is a major importer of stearic acid from Indonesia and Malaysia.