October 31st News
According to the commodity analysis system, the maleic anhydride market in China showed a trend of first rising, then stabilizing at a high level, and finally declining at the end of the month in October. As of October 30th, the average price of maleic anhydride was 99,750 CNY/ton (including tax), which is a 1.27% increase from 98,500 CNY/ton on October 1st.
Supply: In the first half of October, the cost of n-butane, the upstream raw material for maleic anhydride, increased, providing cost support. Additionally, some maleic anhydride production facilities in the region entered maintenance, leading to a decline in operating rates. The supply of available market goods tightened, and traders' mentality of holding back to drive up prices became evident, supporting the rise in maleic anhydride prices in the first half of October. By the end of the month, downstream resistance to high-priced raw materials intensified, and the willingness to replenish stocks weakened, with insufficient demand. As a result, maleic anhydride prices fell from their highs. As of October 30, the factory price of solid maleic anhydride in the Shandong region was around 9,500-9,600 CNY/ton, and the factory price of liquid maleic anhydride was around 8,900-9,000 CNY/ton.
Upstream: In October, the Shandong market for n‑butane experienced volatile gains, driven by geopolitical tensions and rising crude oil prices. Internationally, Saudi Arabia’s October CP butane price stood at $730 per tonne, up $70 from September, while import costs continued to climb, providing support to domestic gas prices.
Downstream: The largest downstream application for maleic anhydride is unsaturated polyester resins, followed by coatings, plasticizers, water treatment agents, and other fields. The main downstream industry, unsaturated polyester resins, has a low operating rate, and downstream enterprises mainly replenish inventory with small orders as needed, showing little interest in large-scale stockpiling. High prices have led to cautious purchasing, which is the core factor restraining price increases at the end of the month. Weak demand from downstream and cost support for maleic anhydride are in a tug-of-war, leading to a pullback in prices after an initial rise.
According to maleic anhydride analysts, on the cost side, Saudi Arabia’s November CP price was set at $780 per ton for butane, up $50 from October, driving further increases in import costs and supporting butane prices. As November begins, the unsaturated resins sector is gradually entering its traditional off-season, with downstream sectors such as fiberglass and composite materials seeing a further decline in operating rates. Consequently, the rigid demand for maleic anhydride continues to weaken, and downstream buyers remain reluctant to accept higher prices. Looking ahead, the Shandong maleic anhydride market is likely to trend volatile and slightly weaker in November.
