In August, the Maleic Anhydride Market in China Continues to Decline

September 02, News

According to the commodity analysis system, the maleic anhydride market in China continued to decline in August. As of September 2nd, the average price of maleic anhydride was 5605 CNY/ton (including tax), a decrease of 4.39% from 5862.50 CNY/ton on August 1st.

Supply side: In the first half of August, the maleic anhydride market continued to decline, mainly due to the increased supply from the northeast region, with more commercial quantities available for sale. Market operations were cautious, and as the auction prices in Yantai continued to fall, factory prices also followed the downward trend. In the latter part of August, the Yantai auction by Wanhua was suspended, while the East China auction first rose and then fell, and the main maleic anhydride factories adjusted their prices accordingly. Currently, Hubei Zhongneng is selling liquid anhydride, and a total of 160,000 tons of facilities in Shandong are scheduled for maintenance in early September. As of September 2nd, the solid anhydride factory price in the Shandong region is around 5,300 CNY/ton, and the liquid anhydride factory price is around 4,650 CNY/ton.

Upstream: In August, the market price of pure benzene in Shandong region first increased and then decreased. The market price mainly rose in the first half of the month and mainly fell in the second half. The price on August 1st was 6,075.33 CNY/ton; on September 2nd, it was 5,975.33 CNY/ton, a decrease of 1.65% from the beginning of the month.

In August, the market price of n-butane in China fluctuated downward, and by September 2nd, the price in Shandong was around 4,510 CNY per ton.

Downstream: In August, the market for unsaturated resins was mainly in a consolidation phase. The downstream demand for unsaturated resins was limited, and the upstream raw material market was weak, providing little support to unsaturated resins, resulting in a weak and consolidating market trend.

The maleic anhydride product analyst believes that the recent decline in the upstream n-butane market in China has limited the cost support for maleic anhydride. Additionally, the weak performance of the main downstream unsaturated resins market has led to limited procurement of maleic anhydride. However, there are maintenance plans for maleic anhydride enterprises in Shandong and North China recently, which will have a certain positive effect on the maleic anhydride market. Currently, some manufacturers are implementing limited order signing operations, and it is expected that the maleic anhydride market in China may see a slight increase in the near future.