In March, the price of maleic anhydride in China rose significantly

March 31st, according to the news

According to the commodity analysis system, the price of maleic anhydride in China rose significantly in March. By March 31, the average reported price of maleic anhydride was 8150.00 CNY/ton (including tax), a 53.77% increase from 5300.00 CNY/ton on March 1.

Supply side: In early March, the market for maleic anhydride surged significantly, with a rapid rise in prices mainly due to the impact of geopolitical conflicts, which strongly pushed up the cost of n-butane, along with a concentrated outbreak of market hoarding sentiment, leading some manufacturers to suspend shipments; by mid-March, the price of maleic anhydride entered a phase of adjustment and fluctuation; towards the end of the month, as geopolitical conflicts escalated, the n-butane market stopped falling and rebounded, driving up the maleic anhydride market. As of March 31, in the Shandong region, the factory price of solid maleic anhydride was operating around 7,700-8,000 CNY/ton, while the factory price of liquid maleic anhydride was operating around 7,700 CNY/ton.

On the upstream side, in March, geopolitical conflicts caused significant fluctuations in international crude oil and natural gas prices, directly driving up the procurement costs of n-butane. Data show that in March, Saudi CP prices remained stable at USD 540 per ton; however, the geopolitical tensions disrupted shipping operations, leading to bottlenecks in n-butane transportation. As a result, n-butane prices in China continued to rise, with prices in Shandong reaching as high as RMB 7,400 per ton at one point. This sharply increased cost pressures on maleic anhydride producers, who were left with no choice but to pass on these rising costs through substantial price hikes—thus becoming the primary driver behind the upward trend in maleic anhydride prices.

Downstream: Although the core downstream industries of maleic anhydride, such as unsaturated resins, coatings, and plastics, have gradually recovered in March, their ability to absorb high-priced maleic anhydride is limited, which has become a key factor restricting further price increases. Downstream enterprises, such as those producing unsaturated resins, have been significantly affected by the substantial rise in raw material prices, leading to a marked increase in production costs. Most companies have chosen to digest their existing inventories and show low willingness to purchase high-priced maleic anhydride, with procurement mainly driven by immediate needs and a clear lack of demand for stockpiling. Some downstream companies have even slightly reduced their load due to high costs, resulting in a strong market wait-and-see sentiment. This has led to a lack of substantive support on the demand side for maleic anhydride, and the sustainability of transactions at high prices is being challenged.

Maleic anhydride product analysts believe that the impact of geopolitical conflicts on n-butane supply will continue, with raw material costs remaining high. Maleic anhydride producers in China have a strong desire to maintain prices, making it unlikely for the market to experience a significant correction. It is expected that the maleic anhydride market in China may experience high-level fluctuations in April.