August 31 news
According to the commodity analysis system, the maleic anhydride market in China continued to decline in August. As of August 31, the average price of maleic anhydride was 8,200 CNY/ton (including tax), a 4.65% decrease from 8,600 CNY/ton on August 1.
Supply side: In July, major maleic anhydride producers in China held back from selling, reducing the availability of spot goods and creating a strong market trend for that month. Entering August, companies that had previously withheld sales resumed their shipments, and maintenance facilities restarted, gradually increasing the supply of spot goods in the market. The supply-demand dynamic shifted, intensifying competition among spot goods. Traders faced pressure to sell, leading to continuous softening of quotations and a downward shift in price levels. By August 31, in the Shandong region, the factory price of solid maleic anhydride was operating around 7,800 CNY/ton, while the factory price of liquid maleic anhydride was around 7,100 CNY/ton.
On the upstream side: In August, the price of n-butane in Shandong declined, influenced by the easing of international geopolitical tensions and the drop in crude oil prices. On the international front, in August, Saudi CP butane prices stood at USD 640 per ton, up USD 40 from July.
On the downstream side: August is traditionally a low-season period marked by high temperatures, during which end-use industries such as fiberglass, artificial stone, and construction materials face constrained operational activity. As a result, UPR plants as a whole continue to operate at relatively low capacity utilization rates. Downstream resin companies mostly adopt rigid demand-based procurement strategies, showing little willingness to build up inventories and rarely engaging in proactive restocking efforts. Market sentiment remains largely cautious, with buyers adopting a wait-and-see approach. High-priced supplies are encountering significant resistance in terms of transactions, and the rise in maleic anhydride prices lacks solid demand support. Although BDO prices rose in August, BDO producers using the maleic anhydride route have maintained low capacity utilization rates, leading to tight supply conditions. Moreover, online auctions have seen high-price transactions, further bolstering sellers’ bullish stance. The incremental demand for maleic anhydride from BDO is primarily driven by essential needs. Meanwhile, demand in niche sectors such as coatings and additives remains stable without any significant growth, failing to offset the drag caused by the off-season for UPR.
Maleic anhydride product analysts believe that entering September, the traditional peak consumption season begins, and the operating rates of downstream unsaturated resins may increase, with orders in the end-user fiberglass and composite materials industries potentially improving. Coupled with supply contractions due to some plant maintenance, there is a possibility for the maleic anhydride market to stop falling and start rising. It is expected that the Chinese maleic anhydride market may show an upward trend in September.
