According to the Commodity Analysis System of SunSirs, the domestic market for maleic anhydride continued to decline in August; as of August 31, the average quoted price was 8,200 RMB/ton (tax-inclusive), representing a 4.65% increase compared to the 8,600 RMB/ton recorded on August 1.
On the supply side, major maleic anhydride producers withheld offers in July, restricting spot market liquidity and driving a strong market rally. As August began, however, companies that had previously suspended sales resumed shipments, and units undergoing maintenance restarted; consequently, spot supplies gradually increased, shifting the supply-demand balance. Competition intensified, placing pressure on traders to move inventory, which led to a continuous softening of quotes and a downward trend in price levels. As of August 31, ex-factory prices in the Shandong region hovered around 7,800 RMB/ton for solid maleic anhydride and 7,100 RMB/ton for liquid maleic anhydride.
On the upstream front, the market for n-butane in Shandong trended downward in August, driven by easing international geopolitical tensions and a drop in crude oil prices; internationally, the Saudi CP for butane was set at $640 per tonne for August, an increase of $40 from July.
On the downstream front, August marks the traditional off-season characterized by high temperatures; operating rates for end-users of fiberglass-reinforced plastics (FRP), engineered stone, and building materials were constrained, keeping overall operating rates at UPR plants low. Downstream resin enterprises primarily engaged in essential procurement with little inclination to build inventory or proactively restock. Buyers adopted a wait-and-see stance, making it difficult to conclude deals at high price points; consequently, the rise in maleic anhydride prices lacked demand-side support. Meanwhile, BDO prices rose in August; capacity utilization among producers using the maleic anhydride route remained low, resulting in tight supplies. High transaction prices in online auctions reinforced the determination of suppliers to hold firm on prices. Incremental demand for maleic anhydride from the BDO sector was driven mainly by essential needs, while demand in niche sectors like coatings and additives remained stable without significant growth—insufficient to offset the drag caused by the off-season slump in the UPR market.
Analysts at SunSirs believe that with the arrival of September—marking the start of the traditional "Golden September" consumption season—operating rates for downstream unsaturated resin production are likely to rebound, and orders in the end-use fiberglass and composite materials sectors may improve. Coupled with a supply contraction resulting from maintenance at certain production facilities, the maleic anhydride market has the potential to halt its decline and recover. Consequently, the domestic maleic anhydride market is expected to trend upward in September.
SunSirs has been continuously tracking price data for over 200 commodities for nearly 20 years, please contact support@sunsirs.com for subscription.
