January Maleic Anhydride Prices Overall Increased in China

January 31st news

According to the commodity analysis system, the overall price of maleic anhydride in China rose in January. As of January 30, the average reported price of maleic anhydride was 5,262.50 CNY/ton (including tax), up 2.93% from 5,112.50 CNY/ton on January 1.

On the supply side: In early to mid-January, the maleic anhydride market experienced narrow-range adjustments. The auction prices from Wanhua declined, and transaction volumes remained moderate, providing limited support to the maleic anhydride market. Prices at major maleic anhydride producers continued to fall, while downstream users were digesting earlier raw material orders, resulting in limited new order signings. However, toward the end of January, as maleic anhydride prices hit a low point, major producing regions implemented quantity restrictions and temporarily halted new sales, leading to tighter spot supply and boosting the maleic anhydride market. Wanhua’s auction performance improved, with transaction prices steadily rising, and the overall maleic anhydride market followed suit. As of January 30, the factory price for solid maleic anhydride in Shandong region was around 5,000 CNY per ton, while the factory price for liquid maleic anhydride was around 4,750 CNY per ton.

On the upstream side: In January, the spot price of pure benzene in Shandong continued to rise. On January 1, the price was 5,268.67 CNY/ton; by January 30, it had climbed to 6,186.67 CNY/ton, representing a 17.42% increase from the beginning of the month. Rising international crude oil futures and higher ex-factory prices for pure benzene overseas boosted market confidence in China’s pure benzene market, prompting active buying and driving further price increases. Local refineries in Shandong, benefiting from the upward trend in oil prices, showed strong confidence and offered bids at significantly higher prices. Meanwhile, Sinopec’s refineries in East and South China maintained stable pure benzene prices at 6,000 CNY/ton, effective January 28.

In January, the market for n-butane experienced volatile upward trends. In February, Saudi CP prices continued to rise by $20, reaching $540 per ton. In January, naphtha prices initially fell and then rebounded; as of January 30, the price of n-butane in Shandong stood at around 4,520 CNY per ton.

Downstream: In January, the prices of unsaturated resins increased due to the rise in raw material costs such as maleic anhydride and styrene, providing cost support. However, the order volume from downstream industries was not good, with mainly rigid demand procurement. Towards the end of the month, downstream operations gradually shut down for the holiday, making it difficult to have proactive stockpiling purchases. Most downstream players are adopting a wait-and-see attitude towards the price increase of resins. It is unlikely that there will be a significant improvement before the Spring Festival holiday, and trading volumes are expected to remain low.

The maleic anhydride product analyst believes that as the Chinese New Year approaches, the main downstream unsaturated resins in China are gradually shutting down for the holiday, leading to a decrease in demand for maleic anhydride; currently, the shipment of spot goods from maleic anhydride factories remains tight, with no pressure on signing new orders; Wanhua's auction transactions have improved, and it is expected that the maleic anhydride market in China will mainly experience minor fluctuations in the near future.