The domestic market for maleic anhydride continued to decline in August, with an average quoted price of 8200 yuan/ton (including tax) as of August 31, up 4.65% from 8600 yuan/ton on August 1.
On the supply side: In July, major manufacturers of maleic anhydride closed down and were reluctant to sell, resulting in a contraction in spot circulation and creating a strong market trend in July; Entering August, companies that were previously closed off resumed shipments, coupled with the restart of maintenance equipment, the market’s spot supply gradually increased, the supply and demand pattern reversed, spot competition intensified, traders faced pressure on shipments, quotations continued to loosen, and the price center continued to shift downward. As of August 31st, the factory price of solid anhydride in the maleic anhydride market in Shandong is around 7800 yuan/ton, while the factory price of liquid anhydride is around 7100 yuan/ton.
Upstream: In August, the n-butane market in Shandong Province declined due to the easing of international geopolitical tensions and the decline in crude oil prices; Internationally, the price of CP butane in Saudi Arabia in August was $640 per ton, an increase of $40 from July.
Downstream: August is the traditional off-season for high temperatures, and the terminal production of fiberglass, artificial stone, and building materials products is limited. The overall production of UPR factories remains at a low level. Downstream resin companies mostly engage in essential procurement, with weak willingness to stock up and few proactive inventory replenishment operations. There is a strong wait-and-see attitude towards buying, and high priced sources of goods have strong resistance to transaction. The rise in maleic anhydride lacks demand drive. The BDO market rose in August, and the capacity utilization rate of BDO enterprises using maleic anhydride method remained low in the BDO industry. The supply of goods was tight, and online auctions were sold at high prices. The holding manufacturers had a strong mentality of supporting the market. BDO has a strong demand for the increment of maleic anhydride; The demand for segmented fields such as coatings and additives remains stable without significant growth, making it difficult to offset the drag of the UPR off-season.
Analysts believe that as we enter September, the traditional gold nine consumption cycle begins, downstream unsaturated resin production may rebound, and orders in the terminal fiberglass and composite materials industries may improve; The maintenance of some overlapping devices has led to supply contraction, and there is a possibility of a rebound in the maleic anhydride market. It is expected that the domestic maleic anhydride market will have an upward trend in September.