SunSirs: In December, the Domestic Maleic Anhydride Market Continued Its Downward Trend

Price trend:

According to the commodity analysis system of SunSirs, the domestic maleic anhydride market continued to decline in December. As of December 24th, the average market price of maleic anhydride produced by the n-butane oxidation method remained at 5,112.50 RMB/ton, a decrease of 2.85% compared to 5,262.50 RMB/ton on December 1st.

Market Analysis

Supply side: The maleic anhydride market continued to decline in December: Wanhua's auction prices continued to fall in December, with poor transaction volumes, 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. As of December 24th, the ex-factory price of solid maleic anhydride in the Shandong region was around 4,850 RMB/ton, and the ex-factory price of liquid maleic anhydride was around 4,500 RMB/ton.

Upstream: In December, the price of n-butane fluctuated and rose, mainly due to the increase in Saudi CP prices in December. As of December 24th, the price in Shandong was around 4,670 RMB/ton.

Downstream market: As of December 24th, the unsaturated resin market was mainly weak and consolidating. The prices of raw materials, styrene and maleic anhydride, had fallen, providing limited cost support. Downstream buyers were maintaining only essential purchases, offering limited support to the unsaturated resin market.

Market Outlook

According to analysts at SunSirs, the main downstream market for maleic anhydride, unsaturated resins, was temporarily characterized by essential demand-driven purchasing. With liquid maleic anhydride prices falling to their lowest point this year, some manufacturers were limiting shipments.  Coupled with the reduction in supply, the maleic anhydride market is expected to see an upward trend in the near future.

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