N-butane Prices Surge, Maleic Anhydride Prices Rise in Tandem in China

March 24th, according to news:

According to the commodity analysis system, the recent maleic anhydride market in China has significantly increased. As of March 23, the average market price for maleic anhydride remained at 8,350 CNY/ton, a 7.40% increase from 7,775 CNY/ton on March 16.

Supply side: The maleic anhydride market declined last week but saw a significant increase at the beginning of this week. Last week, the bidding for the East China session by Wanhua showed average performance, with prices continuously dropping, providing limited support to the maleic anhydride market, and the main factories' prices continued to decline. At the beginning of this week, the bidding for the East China session by Wanhua saw a substantial increase, and the major manufacturers followed suit. As of March 23, in the Shandong region, the factory price of solid maleic anhydride was operating around 8,200 CNY/ton, while the factory price of liquid maleic anhydride was around 8,000 CNY/ton.

On the upstream side: In March, Saudi CP prices remained stable at USD 540 per ton. Currently, geopolitical conflicts continue to affect shipping, leading to persistently high costs for butane transportation. At the beginning of the week, international crude oil prices rose, prompting a significant increase in liquefied gas prices at Shandong refineries. As a result, the price of n-butane in China has climbed to 7,200 CNY per ton.

On the downstream side: At the beginning of the week, prices for unsaturated resins rose, mainly driven by a sharp increase in the price of maleic anhydride—the raw material—providing strong cost support for unsaturated resins. However, downstream companies are largely working through their existing inventories, and market sentiment remains cautious, with purchasing activities remaining primarily driven by immediate needs.

According to maleic anhydride product analysts, geopolitical conflicts remain the primary factor influencing the trend of maleic anhydride in the short term. The supply of feedstock n-butane is tight, driving prices sharply higher and providing support to the maleic anhydride market. However, downstream unsaturated resins are experiencing poor order-booking continuity at high price levels. As a result, the maleic anhydride market is likely to remain volatile at elevated levels in the near term.