October Maleic Anhydride Market Shakes Downward

November 3rd, according to reports

According to the commodity analysis system, the phthalic anhydride market in China fluctuated downward in October. As of November 3rd, the average quoted price for phthalic anhydride was 5,325 CNY/ton (including tax), a decrease of 2.29% from 5,450 CNY/ton on October 1st.

Supply side: After the holiday, the resumption of operations for the main downstream unsaturated resins was not ideal, and the release of new maleic anhydride capacity increased market caution, leading to a continuous decline in the maleic anhydride market. In mid-October, the maleic anhydride market rose, mainly due to tight spot supplies, with Yantai Wanhua's auction prices continuously increasing, and liquid maleic anhydride prices in various regions following suit. By late October, the maleic anhydride market continued to decline, as Yantai Wanhua's auction prices fell, and with the increase in maleic anhydride supply, there was limited support for the market, leading to price adjustments by major maleic anhydride producers. As of November 3rd, in the Shandong region, the factory price of solid maleic anhydride was around 4,900 CNY/ton, and the factory price of liquid maleic anhydride was around 4,700 CNY/ton.

Upstream: In October, the market price of pure benzene in Shandong region of China fell. The price on October 1st was 5848.67 CNY/ton; by October 31st, it had dropped to 5172 CNY/ton, a decrease of 11.57% from the beginning of the month. Recently, the shipment situation in Shandong has been good, boosting market confidence, and local refining enterprises have slightly increased their prices. Sinopec's pure benzene prices in East China and South China refineries remained stable at 5450 CNY/ton, effective from October 21st.

In October, the market price of n-butane in China generally declined, with the price in Shandong around 4380 CNY/ton as of November 3.

Downstream: After the holiday, unsaturated resins manufacturers gradually resumed operations. In the first half of October, market prices for unsaturated resins remained stable but edged downward, with generally moderate trading activity and a predominantly wait-and-see attitude among buyers. In the second half of October, a slight increase in styrene prices provided some cost support for unsaturated resins, prompting a modest rise in operating rates at certain companies. However, by the end of October, raw material prices for unsaturated resins began to decline again, limiting their ability to sustain price levels and pushing resin market prices down to their lowest point of the year.

The maleic anhydride product analyst notes that currently, production facilities in Shandong's maleic anhydride-producing region have resumed operations, while a new facility in Fujian is set to begin external sales, leading to an increase in market supply. Additionally, with the price of unsaturated resins—the primary downstream application for maleic anhydride—dropping to its annual low, support for the maleic anhydride market remains limited. As a result, the analyst expects the maleic anhydride market to likely decline slightly in the near term.