Maleic Anhydride prices in Europe and the USA experienced a downward trend, driven by various demand-side and supply-side factors in early December 2024. The market, particularly in Europe and North America, saw pressures from reduced consumption, increased inventory levels, and stable butane prices, all contributing to a bearish momentum for Maleic Anhydride prices during the early weeks of the month.

Both Europe and the USA saw subdued demand for Maleic Anhydride in late 2024, largely due to slow activity in key sectors such as automotive, coatings, and construction. In Europe, a broader economic slowdown and political instability weakened demand, especially for derivatives. Similarly, in the USA, cautious purchasing and oversupply pressures contributed to a decline in Maleic Anhydride prices. Despite stable production conditions, limited demand in both regions kept prices from increasing significantly.

Demand for Maleic Anhydride in the automotive and construction sectors was subdued in both the USA and Europe. In the USA, automotive production experienced a modest increase, while construction activity remained sluggish due to economic uncertainty. Similarly, in Europe, automotive production showed a slight recovery, but overall demand remained weak, with the construction sector facing challenges from economic and political instability. As a result, demand for MA-derived products was subdued in both regions.

On the supply side, production capacity in both regions remained stable, but with heightened stock levels, the market saw little immediate risk of supply shortages. In Europe, manufacturers were able to manage production costs effectively, but the persistent excess supply led to Maleic Anhydride price decreases. In the USA, the supply of Maleic Anhydride was similarly well-balanced, with distributors holding adequate inventories to avoid immediate disruptions. However, a potential strike on the East Coast ports in the USA and the impact of rising tariffs in early 2025 introduced some uncertainty for the near future.

In both Europe and the USA, declining benzene prices helped producers manage production costs amid external challenges. However, supply continued to outpace demand, keeping Maleic Anhydride prices under downward pressure. In the USA, rising butane prices, driven by increased demand for heating fuels, did not lead to price increases for Maleic Anhydride, as demand remained weak. The decline in benzene prices offered some cost relief, but oversupply and muted end-user demand kept the market cautious. Despite stable production, the imbalance between supply and demand led to lower Maleic Anhydride prices. The overall market sentiment remained subdued in early December.

Looking ahead, the market for Maleic Anhydride is expected to remain subdued through the first quarter of 2025. Prices in both Europe and the USA are expected to continue their downward trend in the short term due to low demand and an oversupply situation. However, as inflationary pressures ease and seasonal demand in construction and automotive sectors picks up, particularly in the spring, there is potential for a rebound in prices.