Market Analysis - Monthly Report - August, 2020 - Maleic Anhydride

What's hot and trending this month

1) The maleic anhydride market is running at a high level with obvious pull and rise.

2) Downstream demand support, the market still has room for upside.

This month's market summary

August, maleic anhydride market all the way higher, in addition to the first week of maleic anhydridemarket due to the pressure of supply and demand, the seller's price is not easily, the market under thenarrow lines, starting from the second week of positive support by supply end, maleic anhydride pricerising, continue upward, first is the decline in east China of maleic anhydride factory work load, makeregional supply and demand pressures eased, manufacturer's price run drive market stop fallingstabilizing, followed by accident parking, maleic anhydride manufacturer in shandong district mademaleic anhydride supply tight again, the seller attitude strength, and also makes the local outbreak ofxinjiang region rebound supply shortage, this a series of tightening supply side makes spot tensions intensified, Give market speculation opportunities to support the price of maleic anhydride continuedto rise. In terms of raw materials, affected by domestic supply and demand as well as the externalinformation surface, the raw material end shows different trends, but the overall cost end supportsare limited. Among them, the hydrogenation benzene-crude benzene-benzene raw materials run at aweak price. N - butane method, n - butane performance was strong, the price maintained highoperation; Downstream, the unsaturated resin in August is still in the off-season market, the openingis basically stable, raw material procurement is still to follow up, the demand side support is general.

Next month market forecast

In September, the current maleic anhydride manufacturers have extended the ordering cycle, theavailable spot is limited, the supply and demand of maleic anhydride is still tight, the quotation ofmain manufacturers is raised again, the other manufacturers have a strong desire to follow up, andthe short-term market still has room for further upward movement. However, in the middle and latestage, with the resumption of parking and installation in the early stage and the production of newunits, the increase of maleic anhydride supply is expected to restrict the upward space of the market. Downstream, the resin demand in September is expected to be good, with strong support at thedemand end. It is expected that the maleic anhydride market will maintain high operation inSeptember, and the specific trend still needs to pay attention to the change of supply and demand.

Factory stoppages in China

In August, domestic maleic anhydride production rate is about 80%, and is expected to increase inSeptember

China's MA export trend in 2019-2020

According to customs statistics, China exported 4,126.421 tons of maleic anhydride in July 2020, andthe average export price was US $677.09 / ton. China imported 12.001 tons of maleic anhydride inJuly 2020, and the average import price was US $2374.135 / ton. Note: the general administration of customs will no longer separately release the import and exportdata of January and February in 2020, but will merge the data in March and release the data to thepublic in January and February. The total amount will be divided equally.

Summary and views

August market strong run run, in the current supply to end a clear change, September maleicanhydride market changes still need to focus on the supply side, short-term parking device is notrestored, maleic anhydride manufacturer to row of single cycle is long, can spot sale is limited, mostreluctant mood, and new capacity release cycle inventory is difficult to have obvious increase infactory background, field remained bullish sentiment. It is expected that there are still highopportunities for maleic anhydride, and the uncertainty of new production capacity, as well as thepre-sale activities of idle manufacturers, will further push up the price