SunSirs: Domestic Maleic Anhydride Prices Rose Sharply in March

Price trend

According to the SunSirs Commodity Analysis System, domestic maleic anhydride prices rose sharply in March. As of March 31, the average quoted price for maleic anhydride stood at 8,150.00 RMB/ton (tax included), representing an increase of 53.77% compared to the price of 5,300.00 RMB/ton recorded on March 1.

Market analysis

Supply Side: In early March, the market for maleic anhydride (MA) experienced a sharp surge, characterized by rapid upward momentum. This rally was primarily driven by geopolitical conflicts, which caused n-butane—a key feedstock—to rise sharply in cost. Additionally, the market witnessed a concentrated outbreak of "reluctance to sell" sentiment among participants, leading some manufacturers to temporarily suspend shipments. By mid-March, MA prices entered a phase of temporary correction and fluctuation. In late March, due to an escalation in geopolitical conflicts, n-butane prices halted their decline and rebounded, thereby pushing the MA market upward once again. As of March 31, in the Shandong region, the ex-factory price for solid maleic anhydride was trading in the range of 7,700–8,000 RMB/ton, while the ex-factory price for liquid maleic anhydride hovered around 7,700 RMB/ton. 

Regarding the upstream sector: In March, geopolitical conflicts triggered significant volatility in international crude oil and natural gas prices, directly driving up procurement costs for n-butane. Data indicates that while the Saudi CP price remained stable at $540 per ton in March, the geopolitical conflicts disrupted shipping operations, resulting in bottlenecks in n-butane transportation. Consequently, domestic n-butane prices continued their upward trend; in the Shandong region, prices surged at one point to 7,400 RMB/ton. This placed immense cost pressure on maleic anhydride manufacturers, compelling them to pass these costs on through substantial price hikes—a factor that emerged as the primary driver behind the rise in maleic anhydride prices.

Regarding the downstream sector: In March, while key downstream industries—such as unsaturated resins, coatings, and plastics—began to gradually recover, their capacity to absorb high-priced maleic anhydride remained limited; this emerged as a critical factor constraining any further price appreciation. Downstream enterprises—particularly those in the unsaturated resin sector—faced significantly elevated production costs due to the sharp rise in raw material prices. Consequently, most firms opted to deplete their existing inventories rather than procure high-priced maleic anhydride; purchasing activity was driven primarily by immediate, essential needs, with virtually no demand for stockpiling. Some downstream companies even slightly reduced their operating loads due to excessive costs. Amidst this pervasive "wait-and-see" sentiment in the market, the demand side for maleic anhydride lacked substantive support, casting doubt on the sustainability of transaction volumes at current high price levels.

Market outlook

According to the Maleic Anhydride Product Analyst at SunSirs, the impact of geopolitical conflicts on the supply of n-butane is expected to persist. With raw material costs remaining at elevated levels and maleic anhydride producers demonstrating a strong inclination to uphold prices, the market is unlikely to experience a significant correction; consequently, maleic anhydride prices in April are projected to fluctuate at a high level.

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