European Maleic Anhydride spot prices strengthened in mid-August due to supply shortages in northwest and central Europe emerged. The supply shortage in Europe has largely been due to force majeure implemented by major producers throughout EU amidst weak demand. European Maleic Anhydride prices also strengthened owing to outages in Germany which added to price gap between NW Europe and the rest of Europe.

Maleic Anhydride spot prices in Europe have been rising since the second quarter of 2024 as freight charges have levelled up significantly reflecting their import dependence. The price revisions in the market also attributed to the rising demand from automotives in Europe. Germany, the major producer of automotives in Europe however has observed contraction in their production as well as sales volume in July 2024. However, the downturn in German market in July has not affected the pricing of Maleic Anhydride during this period. This is largely due to dependence on imports. Freight charges have remained high as shippers seek to remove goods to compensate for longer lead times due to Red Sea crisis, however, market sources reported that demand have been slowing down for US bound deliveries and more carriers have been moving towards Atlantic or Indian Ocean to recuperate cost. Maleic Anhydride supplies from Malaysia, China and South Korea has been keeping the prices up for Europe bound deliveries.

On the other hand, upstream n-butane prices have remained elevated throughout the second quarter and well continued into the third quarter due to Middle Eastern supply concerns for Crude Oil and continued production cuts of Crude by Russia and OPEC. One market participant revealed that despite electrification and other issues, gasoline demand remained buoyant in Europe, which has been keeping the supply of n-butane tight towards Maleic Anhydride production. Germany continues to register contraction in production in their manufacturing activities, which has triggered a lot of buyers to keep their inventory turnover ratio relatively higher. Maleic Anhydride stocks in Europe for downstream unsaturated polyester as well as coatings end-use have remained relatively higher. INEOS and BASF statements reveal that increased input cost affected their spreads significantly in the second quarter in their quest to gain volume. The week ending on 16^th August 2024 saw prices of Maleic Anhydride reaching as high as USD 1275/MT FD Hamburg basis.  

Firmness in Maleic Anhydride prices have also been observed in US markets due to hurricanes cutting the supply. While APAC markets have remained relatively stable and tending towards upward price movement as Chinese suppliers have been putting their plants offline for maintenance. Overall demand fundamentals for August as well as September expected to remain stable, while supply tightness likely to pressure Maleic Anhydride prices to move upwards. ChemAnalyst has forecast for bullish prices in Europe till October, gaining 15% cumulatively.