July China Maleic Anhydride Market Continues Downward Trend

August 5th news

According to the commodity analysis system, the trend of maleic anhydride prices in China continued to decline in July. As of July 31, the average quoted price of maleic anhydride was 5,862.50 CNY/ton (including tax), a decrease of 6.01% from 6,237.50 CNY/ton on July 1.

Supply side: In July, the supply of maleic anhydride in the Chinese market was relatively abundant, with the price of maleic anhydride falling to a low level, and factory prices also decreased. Distributors followed the price drop. The downstream unsaturated resins sector maintained a rigid demand for maleic anhydride, operating cautiously. The shipment of maleic anhydride in the market was average, and the overall market trend was downward. Currently, Yantai Wanhua's three production lines are running at 70% capacity, while Hubei Zhongneng's facility is experiencing malfunctions, with plans to resume operations in mid-August. As of August 5th, the factory price of solid maleic anhydride is around 5,400 CNY/ton, and that of liquid maleic anhydride is around 4,950 CNY/ton.

Upstream: In July, the market price of pure benzene in Shandong region of China fluctuated and rose. In the first ten days, the market price fluctuated and fell, in the middle of the month, the market price first rose then fell, and in the last ten days, the market price increased significantly. The price on July 1st was 5942 CNY/ton; the price on July 30th was 6078.67 CNY/ton, an increase of 2.3% from the beginning of the month.

In July, the market price of n-butane in China fluctuated and increased, with the price in Shandong around 4,830 CNY per ton as of July 31.

Downstream: In July, the market for unsaturated resins mainly showed a weak consolidation. The decline in the prices of upstream styrene and maleic anhydride provided limited cost support for unsaturated resins. Currently, unsaturated resins are in the off-season for consumption, with general downstream transactions, providing limited support to the market, which remains weak.

The maleic anhydride product analyst believes that in August, the main downstream unsaturated resins will continue to purchase maleic anhydride based on rigid demand; the supply of maleic anhydride in the Chinese market is adequate, and there are no significant positive factors. It is expected that the maleic anhydride market in China may continue to maintain a low-level adjustment in August.