The domestic maleic anhydride market in October showed a trend of first rising, high-level consolidation, and month end decline. As of October 30th, the average quoted price of maleic anhydride was 99750 yuan/ton (including tax), an increase of 1.27% compared to 9850 yuan/ton on October 1st.
Supply side: In mid to early October, the rising cost of n-butane, the upstream raw material for maleic anhydride, supported the upward trend in the market. Coupled with the maintenance of some maleic anhydride production facilities in the region, the industry’s operating load has declined, the market’s spot supply has tightened, and traders’ reluctance to sell and drive up prices has become prominent, supporting the upward trend of the maleic anhydride market in mid to early October. At the end of the month, downstream resistance to high priced raw materials intensified, the willingness to replenish weakened, and there was insufficient follow-up on essential needs, resulting in a high drop in the price of maleic anhydride. As of October 30th, the solid anhydride market in Shandong region operates around 9500-9600 yuan/ton, while the liquid anhydride market operates around 8900-9000 yuan/ton.
Upstream: The Shandong n-butane market fluctuated and rose in October, influenced by international geopolitical tensions and the rise in crude oil prices; Internationally, Saudi Arabia’s CP butane in October was 730 US dollars per ton, an increase of 70 US dollars from September, and the cost of imported gas continued to rise, providing support for domestic gas reserves.
Downstream: The largest downstream of maleic anhydride is unsaturated polyester resin, followed by coatings, plasticizers, water treatment agents, and other fields. The main downstream unsaturated resin industry has a low operating load, and downstream enterprises mainly replenish small orders according to demand. There is a lack of willingness to stock up on a large scale, and cautious procurement at high prices is the core constraint factor for the price decline at the end of the month. The weak downstream demand and the cost support of maleic anhydride have formed a game, causing the market to rise and then fall under pressure.
Analysts believe that on the cost side, Saudi Arabia’s CP was introduced in November, with butane priced at $780/ton, an increase of $50 from October. The cost of imported gas continues to rise, supporting the n-butane market; Entering November, the unsaturated resin industry gradually entered the traditional off-season of demand, and downstream end industries such as fiberglass and composite materials further weakened their production. The demand for maleic anhydride continued to decrease, and downstream industries resisted high prices. It is expected that the market for succinic anhydride in Shandong will likely show a weak and volatile trend in November.