Maleic Anhydride Continues to Decline in September, But May See an Upward Trend in October

October 10, news

According to the commodity analysis system, the anhydride market in China continued to decline in September. As of September 30, the average offer price for anhydride was 5450 CNY/ton (including tax), a decrease of 2.77% from 5605 CNY/ton on September 1.

Supply-wise: At the beginning of September, a total of 220,000 tons of plant maintenance in Shandong and Hebei took place, with major factories limiting their output, reducing market supply, and causing the price of maleic anhydride to rise; by mid-September, the maleic anhydride market slightly declined, as earlier auctions in Yantai had poor sales, leading to a continuous drop in prices. Recently, some manufacturers implemented limited sales, causing the prices from maleic anhydride producers to increase somewhat, but overall, supplier prices remained stable. In late September, the maleic anhydride market saw an overall decline. Prior to the holiday, maleic anhydride factories conducted inventory clearance, which provided limited support for the market. The downstream unsaturated resins showed limited purchasing of maleic anhydride, with a poor atmosphere for stockpiling. By the end of the month, the auction prices from Wanhua continued to rise, with factory prices following suit, but dealer quotations generally remained stable. As of September 30, in the Shandong region, the solid maleic anhydride factory price was around 5100 CNY/ton, while the liquid maleic anhydride factory price was around 4800 CNY/ton.

Upstream: In September, the pure benzene market in Shandong region of China experienced fluctuations. During the first ten days of the month, the market price mainly decreased; during the middle ten days, the market price mainly increased; and during the last ten days, the market price fell again. The price on September 1st was 5975.33 CNY/ton; on September 30th, it was 5848.67 CNY/ton, a decrease of 2.12% from the beginning of the month.

In August, China's n-butane market prices fluctuated upward, reaching around 4,650 CNY per ton in Shandong as of September 30.

Downstream: In early to mid-September, the market for unsaturated resins remained mostly stable, with ample supply ensuring sufficient availability. However, downstream transactions were sluggish, providing limited support for unsaturated resin prices. By late September, the market for unsaturated resins weakened further, as many producers planned short-term shutdowns or reduced production capacity during the National Day holiday period. As a result, downstream activity remained subdued, offering minimal support to unsaturated resin prices and contributing to the overall weak market conditions.

The analyst of maleic anhydride products believes that during the National Day holiday, the upstream n-butane market in China has declined, providing limited cost support for maleic anhydride; however, the main downstream unsaturated resins are gradually resuming operations, which provides some support for the purchase of maleic anhydride; in addition, some maleic anhydride enterprises in Shandong have maintenance plans, and the previously shut-down facilities have not yet resumed production, limiting the available supply in the main production areas, which will have a certain boosting effect on the maleic anhydride market. It is expected that the maleic anhydride market in China may see a slight increase recently.