Maleic anhydride rises in price below uncontrollable factor influence

Price trend chart of Chinese Maleic anhydride

The domestic growth rate of maleic anhydride exceeded market expectations. In Shanxi Province, for example, the price of solid anhydride rose by rmb1000 to RMB13000 / ton compared with last week, up 8.33%, up 20.37% from the beginning of the month. And according to the current cash flow of maleic anhydride, and the execution cycle of factory orders, maleic anhydride is still likely to continue to hit high.

The driving factor of maleic anhydride is still the supply side, and the uncertainty factors affect the overall supply level of maleic anhydride.

The parking device is still not activated

The amount of liquid anhydride in Jiangsu area is still limited, and the release amount of the main plant is limited. The local butane plant in Jiangsu is shut down, and jiangning Chemical slows down and releases the amount of liquid anhydride in Jiangsu area. In addition, the main factories in Shandong and Zhejiang have no unloading pressure under the execution of foreign trade orders during the falling channel. After the market decline, merchants and downstream can fill positions at low prices, which is also one of the reasons why the supply of maleic anhydride has strong support.

The new capacity unit is still being tested

The 100,000-ton plant of Huizhou Yuxin trial operation was re-loaded on the evening of 6th, and the current production schedule needs to be continued attention. But at the moment to remove liquid anhydride supplies in jiangsu, guangdong spot can add quantity is limited, because of supply in guangdong area still rely on shanxi, yunnan, xinjiang and other places.

But at present most of orders, the lifecycle all over more than ten days, so difficult to spot supply, follow-up still need to focus on new capacity after feeding operation, if the production goes well, the guangdong area tight supply situation will ease, However, the radiation area of new capacity sales is concentrated in Guangdong and Fujian, and it is expected that the spot tension in Jiangsu is still difficult to ease.

Transport has been disrupted by COVID-19

Since July 7, Ningbo has initiated grade I emergency response, and Zhenhai District has implemented temporary closure management, which makes the market situation of maleic anhydride, which is already in tight supply, more difficult for resin contract customers in zhejiang's downstream, which will increase the current tight supply of Maleic anhydride market and provide opportunities for speculation in the seller's market.

The above factors are positive Maleic anhydride supply side performance, market operating pressure transferred to the downstream market. And for main downstream resin factory, the situation of the market back to the rich hard to find goods, although most of the raw materials for resin band narrowed, but maleic anhydride too fast, will also affect the subsequent new orders could meet the cost of production increases, thus pushing the maleic anhydride can be sustained should focus on the downstream resin purchasing follow up, if you just need to still can follow, stable maleic anhydride high and volatile situation difficult to break, Focus on resin start-up performance and new production capacity of maleic anhydride.