Price trend

According to the business data analysis system of SunSirs, the domestic maleic anhydride market saw an overall increase in January. As of January 30th, the average quoted price for maleic anhydride was 5,262.50 RMB/ton (including tax), a 2.93% increase compared to 5,112.50 RMB/ton on January 1st.

Market analysis

Supply side: In the first half of January, the maleic anhydride market experienced narrow fluctuations. Wanhua's auction prices declined, and trading activity was generally weak, providing limited support to the maleic anhydride market. Major maleic anhydride manufacturers continued to lower their prices, and downstream companies were digesting previous raw material orders, resulting in limited new orders. In the latter half of January, with maleic anhydride prices at a low level, limited production and temporary closures in major production areas led to tighter supply, which benefited the maleic anhydride market. Wanhua's auctions improved, and transaction prices continued to rise, leading to a corresponding increase in maleic anhydride prices. As of January 30th, the ex-factory price of solid maleic anhydride in the Shandong region was around 5,000 RMB/ton, and the ex-factory price of liquid maleic anhydride was around 4,750 RMB/ton.

Upstream: In January, the price of benzene in the Shandong region continued to rise. On January 1st, the price was 5,268.67 RMB/ton; on January 30th, the price was 6,186.67 RMB/ton, an increase of 17.42% compared to the beginning of the month. Rising international crude oil futures and higher overseas benzene prices boosted confidence in the domestic benzene market, leading to active buying and further price increases. Shandong refineries, encouraged by rising oil prices, offered significant price increases. Sinopec's refineries in East and South China maintained a stable benzene price of 6,000 RMB/ton, effective January 28th.

In January, the price of n-butane fluctuated upwards. In February, Saudi Arabia's CP price continued to increase by $20 to $540/ton. The naphtha market experienced an initial decline followed by a rise in January. As of January 30th, the price of n-butane in Shandong was around 4,520 RMB/ton. 

Downstream market: In January, the unsaturated resin market saw price increases, driven by rising prices of raw materials such as maleic anhydride and styrene, providing cost support. However, downstream industries experienced weak order volumes, with purchases mainly driven by immediate needs. Towards the end of the month, downstream companies gradually shut down for the holidays, making proactive stocking and purchasing unlikely. Many adopted a wait-and-see approach regarding resin price increases, and no significant improvement is expected before the Chinese New Year holiday, resulting in limited trading volume.

Comprehensive analysis

According to SunSirs' maleic anhydride product analyst, as the Spring Festival approaching, major downstream unsaturated resin manufacturers were gradually shutting down for the holidays, leading to a decrease in demand for maleic anhydride; As of January 30, maleic anhydride factories were still experiencing tight supply for spot shipments, with no immediate pressure to secure new orders; Wanhua's auction transactions have improved, and it is expected that the maleic anhydride market will mainly fluctuate within a narrow range in the near future.

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