SunSirs: Maleic Anhydride Prices Rose Overall in February

Price trend

According to data from the SunSirs' commodity analysis system, the domestic maleic anhydride market saw an overall increase in February. As of February 28, the average quoted price for maleic anhydride was 5,300.00 RMB/ton (including tax), an increase of 0.71% compared to 5,262.50 RMB/ton on February 1.

Market analysis

On the supply side: In early February, the maleic anhydride market remained weak and consolidating. Wanhua's auction prices declined, and transaction volume was generally low, offering limited support to the market. Major maleic anhydride manufacturers continued to lower their prices, and downstream unsaturated resin plants gradually shut down for holidays, reducing demand. After the holidays, Wanhua's auction prices rose continuously, with good transaction volume, supporting the market. Major maleic anhydride manufacturers raised their prices, but downstream unsaturated resin plants were still in the early stages of resuming production, resulting in limited new orders. As of February 28th, the ex-factory price of solid maleic anhydride in Shandong was around 5,000 RMB/ton, and the ex-factory price of liquid maleic anhydride was around 4,750 RMB/ton.

Upstream: In February, the price of benzene in Shandong fluctuated and declined. The price was 6,168.67 RMB/ton on February 1st; and 6,160 RMB/ton on February 28th, a decrease of 0.43% from the beginning of the month. International crude oil futures rose, and international benzene prices showed mixed trends, resulting in generally weak confidence in the domestic benzene market. Sales at Shandong's local benzene refineries were poor, and some manufacturers slightly lowered their selling prices.

The price of n-butane fluctuated upwards in February. Saudi Arabia's CP price continued to rise by $20 to $540/ton in February. Naphtha prices rose first and then fell in February. As of February 28, the price of n-butane in Shandong was around 4,550 RMB/ton.

Downstream: Before the Spring Festival, the main downstream industries of maleic anhydride, unsaturated resins, gradually shut down for the holiday, resulting in a decrease in demand for maleic anhydride; after the holiday, unsaturated resins gradually resumed operations, and the market was mainly in a wait-and-see mode, providing limited support for unsaturated resins.

Market Outlook

According to analysts at SunSirs, the main downstream industries of maleic anhydride, unsaturated resins, were gradually resuming production; maleic anhydride manufacturers temporarily have no inventory pressure, and the maleic anhydride market is expected to see an upward trend in the near future.

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