SunSirs: The Recent Maleic Anhydride Market Was Consolidating at a Low Level

Price trend

According to the commodity analysis system of SunSirs, the domestic maleic anhydride market has been consolidating at a low level recently. As of August 3, the average market price of maleic anhydride produced by n-butane oxidation remained at 5,862.50 RMB/ton, down 0.21% from 5,875.00 RMB/ton on July 28.

Analysis review

On the supply side, maleic anhydride prices have been consolidating at a low level recently. In the first half of the week, bidding in Yantai was weak, leading to a slight decline in factory-issued prices. However, in the second half of the week, auction prices in Yantai rose slightly, with factory-issued prices following suit. Some major factories have suspended sales, but transaction volume remained healthy despite the limited signing process. As of August 3rd, three production lines of Wanhua in Yantai were operating at 70% capacity, while a unit in Hubei Zhongneng was experiencing a malfunction and was scheduled to resume production in mid-to-early August. As of August 3rd, downstream unsaturated resin manufacturers of maleic anhydride were maintaining inventory to meet demand and adopting a wait-and-see approach. As of July 29th, the ex-factory price of maleic anhydride in Shandong Province was around 5,500 RMB/ton for solid anhydride and 5,000 RMB/ton for liquid anhydride.

On the upstream side: The price of n-butane has been rising recently. As of August 3, the price in Shandong was around 4,830 RMB/ton.

On the downstream side: the unsaturated resin market has been weak recently, and the low upstream styrene market had limited support for the unsaturated resin cost. Unsaturated resin was temporarily in the off-season, and downstream transactions were general, which had limited support for unsaturated resin and the market situation was weak.

Future outlook:

Analysts of maleic anhydride products of SunSirs believe that the market conditions for maleic anhydride's main downstream unsaturated resins were weak, resulting in limited purchases of maleic anhydride; the closure or suspension of sales by some factories has given a certain boost to the maleic anhydride market, and it is expected that the maleic anhydride market will be mainly consolidated in the near future.

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