SunSirs: N-Butane Rose Sharply, and Maleic Anhydride Market Followed Suit

Price trend

According to the Commodity Analysis System of SunSirs, the domestic maleic anhydride market continued to rise recently. As of August 22, the average market price of maleic anhydride produced by n-butane oxidation method remained at 7,180.00 RMB/ton, an increase of 9.95% compared to August 14's price of 6,530.00 RMB/ton, and a year-on-year increase of 13.97%.

On August 22, the maleic anhydride commodity index was 67.64 points, an increase of 0.19 points compared to the previousday, a decrease of 59.36% from the cycle's highest point of 166.43 points (2021-12-15), and a 32.16% increase from the lowest point of 51.18 points on April 14, 2020. (Note: The cycle refers to the period from September 1st, 2011 to the present)

Analysis review

Recently, supported by the favorable situation of maleic anhydride, downstream unsaturated resin companies saw prices rise. However, downstream resin companies restock just in needed and resin manufacturers had average shipments, with limited replenishment of maleic anhydride. Recently, the market for raw material n-butane had significantly increased, with an increase of 500-600 RMB/ton. Cost support for the continuous increase in the market for maleic anhydride. As of the 22nd, the solid anhydride in Shandong region was about 7,000 RMB/ton, in Jiangsu region it is about 7,000 RMB/ton, and in South China it was about 7,500 RMB/ton.

On the upstream side, the overall performance of the pure benzene market was weak, with the crude oil market falling for three consecutive days and the external market of pure benzene declining, dragging down the mentality of the pure benzene market and causing a slight decline in prices; The overall performance of the downstream was also weak, with some styrene and other devices being shut down for maintenance. The expectation of future market demand is weak, dragging down the mentality of the pure benzene market. The overall industrial chain ran weaker, and by Friday, with the strengthening of styrene, the pure benzene market slightly rebounded, and market prices had slightly rebounded. Driven by the pure benzene market, the spot market for hydrogenated benzene fell first, then rose and overall declined this week. Recently, the market for n-butane had significantly increased, with prices in Shandong reaching around 5,600-5,700 RMB/ton as of August 22nd.

Market outlook

SunSirs’ Maleic Anhydride Product Analysts believe that the recent significant increase in raw material n-butane led to a continuous increase in the price of the main factory's maleic anhydride; Downstream procurement was mainly based on demand, with caution in pursuing high prices and limited replenishment. As of August 22rd, the prices of raw materials were high, and the maleic anhydride market was supported by cost. It is expected that there will still be an upward trend in the maleic anhydride market in the near future.

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