SunSirs: Declining Crude Oil Prices Weighed on Commodities; the Maleic Anhydride Market Weakened in Tandem

Price trend

According to data from SunSirs' data, domestic maleic anhydride prices have continued their downward trend recently. As of May 27, the average market price for maleic anhydride stood at 8,112.50 RMB/ton, marking a decline of 1.82% compared to the price of 8,262.50 RMB/ton recorded on May 20.

Market analysis

Supply Side: The recent sustained decline in international crude oil prices has weighed on the performance of domestic commodities, leading to a continued retreat in prices at major maleic anhydride production facilities. However, limited spot availability in the maleic anhydride market is providing some support to the domestic market. As of May 27, ex-factory prices for solid maleic anhydride in the Shandong region were trading in the range of 7,100–7,600 RMB/ton, while ex-factory prices for liquid maleic anhydride were hovering around 7,300 RMB/ton.

Upstream: Recently, LPG prices at refineries in Shandong have trended downward, causing domestic n-butane prices to fluctuate around 6,550 RMB/ton. For May, the Saudi CP price stood at $800/ton, remaining stable.

Regarding the downstream sector: The market for unsaturated resins has recently shown weakness, driven primarily by a decline in raw material prices, which has resulted in limited cost support for unsaturated resins. Downstream enterprises remain in a strong wait-and-see mode, with purchasing activities largely confined to meeting immediate, essential needs.

Market outlook

According to an analyst specializing in maleic anhydride at SunSirs, demand-side factors—specifically the operating rates within the downstream unsaturated resins sector—are unlikely to see a significant short-term increase. On the cost side, raw material prices are trending lower, thereby weakening cost-based support for maleic anhydride production. Consequently, the domestic maleic anhydride market is expected to maintain a weak performance in the near term, with prices likely to continue their volatile downward trajectory.

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