SunSirs: N-Butane Surged, and Maleic Anhydride Prices Rose in Tandem

Price trend

According to the commodity analysis system of SunSirs, domestic maleic anhydride prices have recently surged significantly. As of March 23, the average market price for maleic anhydride stood at 8,350 RMB/ton—an increase of 7.40% compared to the price of 7,775 RMB/ton recorded on March 16.

Market Analysis

Supply Side: The market for maleic anhydride experienced a downturn last week but saw a sharp surge at the beginning of this week. Last week, Wanhua's auction for the East China region saw lackluster trading performance, and prices continued to decline, offering limited support to the broader maleic anhydride market; consequently, prices at major production facilities continued their downward trend. However, at the start of this week, Wanhua's East China auction witnessed a substantial price hike, prompting other major manufacturers to follow suit. As of March 23, ex-factory prices in the Shandong region's maleic anhydride market were hovering around 8,200 RMB/ton for solid anhydride and 8,000 RMB/ton for liquid anhydride.

Upstream: In March, Saudi CP prices held steady at $540 per ton. Currently, geopolitical conflicts are impacting shipping logistics—and consequently butane transport—keeping costs persistently high. Early in the week, international crude oil prices rose; this triggered a sharp surge in LPG prices at Shandong refineries, driving domestic n-butane prices up to 7,200 RMB/ton.

Downstream Sector: At the beginning of the week, the market for unsaturated resins trended upward, driven primarily by a sharp surge in the price of maleic anhydride—a key raw material—which provided strong cost support. However, downstream enterprises largely focused on depleting existing inventories; with a prevailing wait-and-see sentiment, purchasing activity remained limited to meeting immediate, essential needs.

Market outlook

According to an analyst specializing in maleic anhydride at SunSirs, geopolitical conflicts are expected to remain the primary factor influencing market trends in the short term. The tight supply of the key feedstock, n-butane—which has driven up prices significantly—is currently providing support to the maleic anhydride market. However, the sustainability of high-priced order placements within the downstream unsaturated resin sector remains weak; consequently, the maleic anhydride market is likely to experience a period of high-level volatility in the near future.

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