Sebacic Acid Price Trend and Forecast

Sebacic Acid Regional Price Overview

Get the latest insights on price movement and trend analysis of Sebacic Acid in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Sebacic Acid Price Trend for the First Half of 2024

The price trend of sebacic acid during the first half of 2024 was influenced by fluctuations in its primary feedstock, castor oil. In the early months of the year, the sebacic acid market witnessed a tepid performance, reflecting the vacillating prices of castor oil. Geopolitical disturbances and logistical challenges, such as shipping delays and disruptions in international trade, created an uneven market environment. Some countries faced an oversupply of castor oil due to lower import demand, while others had stockpiling issues, which indirectly kept sebacic acid prices from gaining substantial upward momentum.
 

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As India, a major producer and exporter of castor oil, projected an increase in castor seed production, it initially led to a slight dip in the feedstock's prices. This surplus of castor oil in the domestic market impacted the cost of sebacic acid as well, contributing to a downward price trend. However, the international market's lukewarm demand further reinforced this pattern, resulting in a relatively stagnant price movement for sebacic acid during the first quarter.

In the second quarter, the dynamics shifted as Indian farmers, observing a steady demand for castor oil from international markets, began limiting the supply. This intentional tightening of castor oil availability pushed the market sentiments upward, directly impacting the price trajectory of sebacic acid. The feedstock's constrained supply, coupled with steady demand for sebacic acid from downstream industries, led to upward price pressure in the latter half of the quarter. Nevertheless, this increase was moderated by the fact that initial excess supplies of castor oil had balanced the market in the early phase of Q2, preventing a sharp price spike.

Analyst Insight

According to procurement resources, the price of Sebacic Acid is thus the market's direction will likely depend on the supply-demand dynamics of the major markets and limited availability of raw materials.
 

Sebacic Acid Price Trend for the Second Half of 2023

The extensive use of sebacic acid in the production of polymers, including polyesters, polyamides, and plasticizers, is a primary market driver. Sebacic acid is also known for playing a key role as a key ingredient in the production of various applications such as textiles, cosmetics, lubricants, and pharmaceuticals. Additionally, the increasing demand for bio-based and renewable chemicals further contributes to the expansion of the sebacic acid market.

In the final two quarters of 2023, sebacic acid prices experienced a rapid decline. Sebacic acid is derived from castor seeds, and therefore, its prices closely mirror the price trends of its source. The cultivation of the castor crop thrived in semi-arid regions such as Gujrat and Rajasthan in India, which eventually caused an unexceptional bloom in the inventories. Thus, throughout the aforementioned period, the castor oil industry faced reduced market demands along with consistent inventory supplies, leading to an oversupply crisis not only in India but several other nations such as Indonesia, Brazil, and China.

However, it was observed that as the year approached its end, the dynamics of the market started to improve, and the prices began to stagnate. This relief in the market sentiments came from the rise in the spending budget of the consumers at the onset of the holiday season and the spike in the industrial activities of downstream polymer sectors.

Analyst Insight

According to Procurement Resource, the price trend of Sebacic Acid is estimated to bear the trajectory paved by the demand from the downstream polymer and plasticizer sector and trading activities around the globe.

Procurement Resource provides latest prices of Sebacic acid. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.