July 31st, according to news,
According to the commodity analysis system, the anhydride market in China saw a significant increase in July, with a slight decline at the end of the month. As of July 31, the average price of anhydride was 8,600 CNY/ton (including tax), an increase of 18.62% from 7,250 CNY/ton on July 1.
Supply side: In July, the supply and demand balance of the Chinese maleic anhydride market shifted from balanced to tight. The supply side showed significant divergence: integrated butane-based plants were operating at full capacity but were holding back sales, prioritizing long-term cooperative resin factories, BDO manufacturers, and fixed export orders; benzene-based facilities continued to halt production due to cost pressures, with new capacity commissioning falling short of expectations. Additionally, some plants in Shandong region underwent maintenance, leading to a significant reduction in available spot goods in the Chinese market. Manufacturers had strong expectations for price increases, continuously raising their offers, making it more difficult to obtain spot goods. Inventory: Social inventory remained low, with the holding costs for traders increasing. Most traders had prices but no stock, while a few traders with stock focused on serving long-term cooperative customers. As of July 31, the factory price for solid maleic anhydride in the Shandong region was around 7,800-8,000 CNY/ton, and the factory price for liquid maleic anhydride was around 7,100-7,500 CNY/ton.
On the upstream side: In July, the price of n-butane in Shandong saw a significant increase, driven by heightened international geopolitical tensions and rising crude oil prices. Internationally, the Saudi CP butane price in July was USD 600 per ton, down USD 220 from June, resulting in a substantial reduction in the cost of imported butane.
Downstream: In July, during the traditional high-temperature low season, the terminal demand for fiberglass, anti-corrosion building materials, and artificial stone in China was weak. Most resin companies produced according to demand, with overall operations maintained at a low level. After the continuous significant increase in maleic anhydride, the production costs of resins rose, but the transmission to the terminal market was not smooth, putting pressure on the profits of resin companies. The willingness to purchase high-priced maleic anhydride was low, with most companies maintaining just-in-time restocking. In July, the BDO market price increased, leading to continuously rising raw material costs for BDO producers using the maleic anhydride method, which compressed their production profits, thus strengthening their intention to maintain prices.
According to analysts of maleic anhydride products, at the end of July, leading maleic anhydride producers such as Qixiang Tenda implemented production cuts and withheld supplies, tightening the spot market supply. It is expected that these restrictions will be lifted in August, allowing for a gradual resumption of spot supply releases. Coupled with the anticipation of restarting previously shut-down units, the overall market supply is likely to increase steadily. On the demand side, unsaturated resins remain in the traditionally slow, high-temperature season in early August; downstream users of UPR and BDO continue to maintain rigid demand and show limited willingness to chase price increases. Only closer to the end of the month might there be a slight rebound in demand driven by traditional inventory-building expectations, but this is unlikely to translate into sustained demand growth. As for the feedstock n-butane, Saudi Arabia announced its August CP price at USD 640 per ton, up USD 40 from July. Given the heightened tensions in the Middle East, this supports the n-butane market in China. It is anticipated that the Chinese maleic anhydride market in August will likely experience high-level fluctuations with the center of gravity gradually shifting downward.
