European Maleic Anhydride Prices Ease With Ample Supply and Weak Demand

Hamburg (Germany)- Maleic Anhydride prices eased in June 2024, as ample supply and weak demand persisted in Europe. Spot prices for Maleic Anhydride were assessed around FD Hamburg USD 1245/MT and stabilized there since the beginning of July. On the other hand, upstream crude prices of Brent crude surged by 10.2% in June. The upward movement in prices of crude and the lowering of the number of commodity inquiries both indicate that demand for Maleic Anhydride has remained lower in the last month of Q2.

Maleic Anhydride prices previously surged in June 2024 in Europe on a 3% MoM basis, as assessed by ChemAnalyst. This was largely due to the Brent crude index and subsequently, feedstock Butane prices eased by 3.2%. The freight charges surged in June to newer heights, amid the geopolitical issues and the congestion at the regional ports delaying the shipment and putting the Maleic Anhydride retailers in dilemma. The situation however remained favorable for Europe as major downstream companies of Maleic Anhydride were undertaking inventory buildup for the surge in summer demand.

Market participants revealed that European imports of Maleic Anhydride progressively improved in Q1 2024 with the rollover of import growth into Q2, however, the growth turned modest due to high freight charges surging throughout the second quarter. In June Shanghai containerized freight Index hit a high reading indicating strong volume flow throughout Europe and China was maintained in June. This high-volume throughput added ample volume to the Rotterdam ports for the coming consumption and high-demand period of summer months in Europe.

However, high crude prices surge of 10.2% in June and the rising trend in mortgage rates across German markets since January 2024 has kept the business as well as consumer confidence down. This was reflected in poor contract orders for July for MA.  Automotive demand in Germany however has been driving and keeping the steadiness in polymer prices, especially MA-derived polymer prices, revealed a market participant.

Maleic Anhydride is largely used to produce unsaturated polyester polymers which are used in automotive and construction. However, weaker demand in construction weighed down overall market sentiment this month for Maleic Anhydride importers. Shanghai Containerized Freight index recorded a fall of 59 units indicating that demand for slots between Rotterdam and Shanghai eased.

As per ChemAnalyst, the Maleic Anhydride prices in the European market are expected to stabilize and move in a positive direction amidst the surge in the freight charges and the increased input cost which may consequently pressure the manufacturers to keep the prices on the upper edge.