1、 Price trend
According to the monitoring of the commodity market analysis system of Shengyishe, palm oleic acid operated steadily this week. As of April 18th, the mainstream price of palm oleic acid (purity ≥ 70) in China was 11466.67 yuan/ton, which remained unchanged from last week and increased by 0.29% compared to April 1st.
2、 Market analysis
Cost side:
Since April, the palm oil market has been mainly oscillating and declining. As of April 17th, the average price of palm oil in the market is 8038 yuan/ton, a decrease of over 5%. In the near future, Malaysia’s palm oil has been in a production increase cycle, and the bearish sentiment is still present, putting pressure on the rise of palm oil in the future.
Demand side:
The demand in the downstream market appears weak, the consumption speed at the end is relatively slow, the usage is not improving, the purchasing willingness is poor, and the demand side is bearish, affecting the palm oil acid market.
This week, the utilization rate of palm oleic acid production capacity was around 6.2 levels. Due to poor shipment volume, inventory gradually accumulated, and producers mainly focused on handling inventory, resulting in a delay in cost side bearish sentiment.
3、 Future Market Forecast
The inventory of palm oleic acid is currently quite abundant, and downstream factories mainly purchase based on actual demand, with a relatively cautious attitude. Although the main downstream factories maintain a normal production rhythm, the operating rate of the terminal factories is relatively low, and the procurement enthusiasm is not high. In the future, palm oil prices are under pressure due to rising prices, and there is room for price increases in raw materials. Cost support is expected to strengthen, and it is expected that the range of the palm oleic acid market will mainly consolidate.
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