Maleic Anhydride Prices Experience a Slight Increase in August; Holds Optimism for September

Hamburg, Germany: In August 2024, Maleic Anhydride prices demonstrated overall stability, with a slight uptick of USD 10/MT by August 23^rd, as reported by ChemAnalyst. This modest increase was driven by supply constraints, even as upstream n-butane contracts saw a 2% decline this week due to higher production levels and reduced gasoline demand, as increased renewable energy output offset fossil fuel needs. No significant market developments were observed during the week, contributing to stable pricing trends. Additionally, U.S. outbound delivery charges to Europe are expected to rise in September, according to market sources. Although August has seen relatively stable prices, supply tightening has kept Maleic Anhydride prices elevated.

The supply of Maleic Anhydride remained sluggish throughout August, largely due to reduced production output caused by ongoing disruptions in Texas and Louisiana that persisted through July. These disruptions resulted in production levels that continued to fall short of optimal levels during the week in question. Meanwhile, benzene prices in the U.S. market, rose by USD 45 per ton as of August 2nd. This increase in spot prices has put some cost pressures, keeping Maleic Anhydride costs higher in anticipation of increased demand in the coming months. Prices for Maleic Anhydride climbed by USD 10/MT in the second week, driven by supply disruptions in the German market. Reports indicated that a German supplier had declared force majeure on Maleic Anhydride supply, as production and business fundamentals in Germany remained weak due to high-interest rates. The third week saw Maleic Anhydride prices stabilize, reflecting steady market dynamics and lower trading activity amid increased economic uncertainty in Germany.

Demand for Maleic Anhydride remained stable on a monthly basis but continued to be relatively lower than pre-war levels. The latest Eurozone Producer Price Index (PPI) showed a continued cooling in industrial prices, with a year-over-year decrease of 3.2%, slightly better than the previous 4.1% decline. This suggests that while producer prices are still falling, the rate of decline has slowed, aided by a recovery in demand for paints and coatings driven by the automobile and construction sectors, according to Eurostat. The market is currently focused on consolidating supply and stabilizing Maleic Anhydride volumes after a bullish trend since Q2 2024. In the second week, high import costs continued to drive up domestic prices. The third week saw reinforced demand for unsaturated polyester resin, with higher consumption and relatively increased chemical production in the Eurozone as summer demand peaked, adding to price pressures on Maleic Anhydride.

ChemAnalyst forecasts a bullish trend for Maleic Anhydride prices as Europe enters its peak summer trading season, anticipated from mid-September to early October, with consumption improving as mortgage and credit rates stabilize across the EU. Consumer resilience is expected to drive consumption, and European business sentiment remains positive. However, Germany's industry is likely to lag behind Dutch industries due to supply challenges and a higher debt burden for Maleic Anhydride. The recovery of the construction sector in Germany may take longer due to the increased frequency of insolvencies and pending projects.