SunSirs: With Limited Cost Support, Maleic Anhydride Prices Retreated Sharply

Price trend

According to data from SunSirs' data, domestic maleic anhydride prices experienced a significant decline this week. As of April 16, the average market price for maleic anhydride stood at 8,050 RMB/ton—a decrease of 8.13% compared to the price of 8,762.50 RMB/ton recorded on April 10.

Market analysis

Supply Side: The market for maleic anhydride continued its downward trend this week. Wanhua's auction in the East China region saw lackluster trading performance, leading to a continued decline in prices and offering limited support to the broader maleic anhydride market; consequently, prices at major production facilities continued to fall. This week, some manufacturers restricted shipments or temporarily suspended trading; however, the volume of new orders from downstream sectors remained limited, with market transactions driven primarily by immediate, essential demand. As of April 16, ex-factory prices for solid maleic anhydride in the Shandong region were hovering around 7,000–7,500 RMB/ton, while ex-factory prices for liquid maleic anhydride were trading in the range of 7,000–7,200 RMB/ton.

Upstream: In April, Saudi CP prices rose to $800 per ton. Imported gas supplies are expected to remain tight throughout April; meanwhile, LPG prices at Shandong refineries have continued to trend downward recently, and domestic n-butane prices have fluctuated lower, settling at 6,700 RMB/ton.

Downstream Sector: The market for unsaturated resins remained weak this week. This was primarily driven by a decline in raw material prices, which provided only limited cost support for unsaturated resins; consequently, downstream enterprises adopted a strong wait-and-see stance, limiting their purchasing activities primarily to meeting immediate, essential needs.

Market outlook

According to the Maleic Anhydride Product Analyst at SunSirs, the current price of maleic anhydride is in a phase of high-level fluctuation. Following a significant surge in the preceding period, the market is experiencing some pressure from profit-taking and price corrections. However, given factors such as industry operating rates, cost support from raw materials, and demand from downstream sectors—particularly unsaturated resins—it is highly probable that maleic anhydride prices will maintain a trend of high-level volatility. The scope for a sharp decline in the short term appears limited. Moving forward, key areas of focus include updates on plant maintenance schedules, price fluctuations of the raw material n-butane, and evolving trends in downstream end-market demand. Should there be no significant increase in supply, market prices may still have the potential for further periodic strengthening.

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