May China Maleic Anhydride Market Trend Fluctuates and Rises

May 31st news

According to the commodity analysis system, the maleic anhydride market in China fluctuated and increased in May. As of May 31, the average price of maleic anhydride was 7962.50 CNY/ton (including tax), up 1.27% from 7862.50 CNY/ton on May 1.

Supply side: In May, the overall operating load of China's maleic anhydride plants was at a low level, with several major plants undergoing maintenance. The 60,000 tons/year plant in Binzhou Dayou stopped production in late May, and the maintenance of the 150,000 tons/year plant in Fujian Baihong was postponed. Factories controlled the amount of goods released to the market, leading to a tight supply of spot resources. As of May 31, the factory price of solid maleic anhydride in the Shandong region was around 7,000-7,400 CNY/ton, and the factory price of liquid maleic anhydride was around 7,100 CNY/ton.

On the upstream side: In May, the spot price of n-butane in Shandong experienced volatile downward trends, driven by geopolitical tensions in the Middle East, a decline in import arrivals, and maintenance activities at some Chinese plants, resulting in an overall tight supply situation. Internationally, Saudi CP butane prices remained high at USD 800 per ton in May.

Downstream: In May, the unsaturated resins industry in China saw low production, with companies producing according to orders. The end-user sectors such as construction materials, bathroom fixtures, and handicrafts entered the traditional off-season, leading to a quiet market with only essential restocking by downstream users. There was no concentrated demand for restocking, and the acceptance of high-priced raw materials was extremely low.

Maleic anhydride product analysts believe that as the previously shut down maleic anhydride facilities resume production in June, the market supply in China will gradually become more relaxed. Under inventory pressure, some enterprises may see continued downward pressure on prices. The operating rate of the downstream unsaturated resins industry is unlikely to increase significantly in the short term, and companies' purchases will still be mainly based on rigid demand, which will have a limited effect on boosting the price of maleic anhydride. It is expected that the trend of maleic anhydride prices in China in June may show a downward trend.