SunSirs: Domestic Maleic Anhydride Prices Trended Downward Overall in April

According to the commodity analysis system of SunSirs, the domestic market for maleic anhydride experienced a general downward trend in April. As of April 30, the average quoted price for maleic anhydride stood at 7,862.50 RMB/ton (tax included), representing a decline of 8.04% compared to the price of 8,550.00 RMB/ton recorded on April 1.

Supply Side: In April, the supply of maleic anhydride exhibited a "high at the beginning, low at the end" pattern. During the first ten days of the month, some production units maintained high operating rates, resulting in a relatively ample market supply. From the middle of the month onward—driven by a rapid decline in prices and inverted profit margins, coupled with a continuous surge in shipments from the Northeast region (which maintained a distinct logistical advantage)—high-priced transactions across various regions became constrained. Consequently, the industry saw an increase in plans for production cuts and maintenance shutdowns; operating rates for maleic anhydride units utilizing the n-butane oxidation process gradually declined, leading to a contraction in overall market supply. Toward the end of the month, as manufacturers slowed down shipments of liquid maleic anhydride—and with the Northeast region suspending shipments just prior to the holiday—downstream buyers entered the market to restock based on immediate pre-holiday demand and fears of impending price hikes, thereby driving up prices in the maleic anhydride market. As of April 30, ex-factory prices for solid maleic anhydride in the Shandong region were hovering around 7,800 RMB/ton, while ex-factory prices for liquid maleic anhydride were trading near 7,500 RMB/ton.

Upstream Sector: Following a brief surge early in the month, the n-butane market in April experienced a sustained downward trend throughout the mid-to-late period. This decline was driven primarily by insufficient downstream chemical demand, the onset of the off-season for residential gas consumption, and weak market sentiment. Consequently, the price center of gravity shifted significantly lower, and the market as a whole operated within a weak overall pattern. In April, Saudi CP prices rose to $800 per ton.

Regarding the downstream sector: In April, operating rates within the core downstream market for maleic anhydride—unsaturated resins—remained at a low level. Downstream enterprises largely scheduled production based on specific orders; consequently, their procurement of maleic anhydride was driven primarily by immediate, essential needs, with little inclination toward bulk purchasing. Concurrently, the downstream industry faced mounting pressure on profit margins, leading to a continued decline in the acceptance of high maleic anhydride prices. With new market orders remaining sluggish, a dynamic characterized by "strong supply and weak demand" emerged, directly exerting downward pressure on maleic anhydride price trends.

Market Outlook

According to an analyst specializing in maleic anhydride at SunSirs, market supply is expected to contract in May due to the scheduled shutdown of additional production units. Meanwhile, the continuous rise in crude oil prices may provide some cost-side support for maleic anhydride. However, operating rates within the downstream unsaturated resin market remain low, making it unlikely that terminal demand will see any substantial recovery; consequently, support for maleic anhydride prices remains insufficient. It is projected that the maleic anhydride market will likely fluctuate within a weak range throughout May.

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