Geopolitics "Ignites" Energy and Chemical Sector, Maleic Anhydride Surges High

March 4th News

According to the commodity analysis system, the recent maleic anhydride market in China has significantly increased. As of March 4th, the average market price for maleic anhydride produced by the n-butane oxidation method remained at 5962.50 CNY/ton, a 12.50% increase from 5300 CNY/ton on March 1st.

Supply side: Recently, the market price of maleic anhydride has continued to rise significantly. The transaction price of Wanhua's auction in the East China region has risen continuously to 6120-6130 CNY/ton, with an increase of 1140-1150 CNY/ton over three days, and the trading condition is good, supporting the maleic anhydride market. The prices from major maleic anhydride producers have continued to rise significantly. As of March 4th, in the Shandong region, the factory price of solid maleic anhydride is operating around 6200 CNY/ton, and the factory price of liquid maleic anhydride is operating around 6000 CNY/ton.

On the upstream side: In March, Saudi CP prices remained stable at USD 540 per ton. However, given expectations of a closure of the Strait of Hormuz, which could disrupt maritime shipping and subsequently affect mixed-butane transportation, the supply of imported liquefied petroleum gas may tighten. Considering the soaring freight and insurance costs, the actual landed cost of Saudi CP is diverging from the theoretical calculations, and forward price expectations continue to rise. Meanwhile, China’s n-butane prices have climbed to RMB 5,350 per ton.

Downstream: Recently, the prices of unsaturated resins have risen, mainly due to a significant increase in the cost of raw materials such as styrene and maleic anhydride, providing cost support for unsaturated resins. Additionally, as end-users gradually resume operations and replenish their stocks, this has further supported the market for unsaturated resins. However, some downstream companies had stocked up before the holiday, so their purchases are mainly based on essential needs.

According to maleic anhydride product analysts, recently, driven by the sustained impact of geopolitical risk premiums, costs of n-butane have risen sharply. Coupled with the gradual resumption of operations at major downstream unsaturated resin producers, the maleic anhydride market is likely to continue rising in the short term.