In 2021, China's maleic anhydride export volume increased substantially.

In the first six months of 2021, China's maleic anhydride exports reached 69,700 tons,  increasing 83% compared with the same period last year,and have exceeded the total exports in 2020. In June, China exported 10,962 tons of maleic anhydride, up 139% compared with the same period last year .In August, domestic factories will continue to execute foreign trade orders . Market news said that the main factories in August and September foreign trade orders have been filled. High foreign trade exports also form an effective support for domestic prices.

Prices in the domestic Maleic anhydride market began to rise around the end of June and continued to rise until late July.  In August, due to the cost of raw materials and the supply of factories, the price began to stop falling.

The two raw materials of maleic anhydride, hydrogenated benzene and Styrene, are now relatively high in price, resulting in lower profits for maleic anhydride plants.  The profit of benzene process is less than 1000 yuan, and that of butane process is less than 3000 yuan.  Maleic anhydride factories are reluctant to sell at low prices, so market prices are starting to be supported.

At present, many maleic anhydride factories in Shanxi Province have been shut down, resulting in  significant decrease in the supply of short-term solid phthalic anhydride.  In addition, major factories are increasing exports, and the lack of domestic supply continues to reduce domestic price competition, making domestic maleic anhydride prices further upward support.

Overall, the domestic maleic anhydride market is supported by both cost and supply, and maleic anhydride factories are starting to firm prices.  Although some regions are affected by the epidemic, such as logistics and production problems, market prices may go up due to the reduction of supply and speculation by market participants.