In April, the overall trend of maleic anhydride in China declined

April 30th News

According to the commodity analysis system, the overall market trend of maleic anhydride in China declined in April. As of April 30, the average quoted price of maleic anhydride was 7,862.50 CNY/ton (including tax), a decrease of 8.04% from 8,550.00 CNY/ton on April 1.

Supply side: In April, the maleic anhydride market supply showed a "high at the beginning and low at the end" characteristic. During the early part of the month, some facilities maintained high operating rates, with relatively ample market supply. From mid-month, due to a rapid decline in prices and profit inversion, coupled with continuous releases from Northeast China, where the advantage of arrivals remained significant, the volume of transactions at high prices was limited in various regions. As a result, the number of production reduction and maintenance plans increased, and the operating load rate of n-butane-based maleic anhydride facilities gradually declined, leading to a contraction in market supply. At the end of the month, as manufacturers slowed down the shipment of liquid anhydride, and Northeast China suspended shipments before the holiday, downstream buyers, driven by fears of price increases, entered the market to stock up on their pre-holiday needs, pushing up the maleic anhydride market. By April 30th, the factory price of solid anhydride in Shandong region was around 7,800 CNY/ton, and the factory price of liquid anhydride was around 7,500 CNY/ton.

On the upstream side: After a brief surge in early April, the market for n-butane continued to decline throughout the mid-to-late part of the month, driven by factors such as weak downstream chemical demand, seasonal slowdown in residential gas consumption, and subdued market confidence. As a result, price levels shifted noticeably downward, and the overall market remained in a weak operating environment. In April, Saudi CP prices rose to USD 800 per ton.

Downstream: In April, the operating rate of the unsaturated resins market, a key downstream sector for maleic anhydride in China, remained low. Most downstream enterprises produced according to orders, purchasing maleic anhydride mainly based on immediate needs, with little interest in bulk procurement. At the same time, the profitability of the downstream industries was under pressure, leading to a continuous decline in their acceptance of high prices for maleic anhydride. The market saw few new orders, resulting in a "supply-strong, demand-weak" situation, which directly suppressed the price trend of maleic anhydride.

According to analysts of maleic anhydride products, with the addition of new shutdown units in May, market supply is expected to decline. Meanwhile, consecutive increases in crude oil prices may provide some support to maleic anhydride costs. However, the utilization rate of downstream unsaturated resins remains low, and terminal demand is unlikely to see any substantial recovery, thus providing insufficient support for maleic anhydride prices. It is anticipated that maleic anhydride prices in May will likely fluctuate within a weak range.