For the Quarter Ending September 2024
North America
The third quarter of 2024 has been a period of mixed movement of prices for Maleic Anhydride in North America, with significant factors influencing market prices. The demand for Maleic Anhydride has been on the rise due to strong performance in downstream industries such as coatings and Unsaturated Polyester Resin. This increased demand has put pressure on prices, supported by stable production costs driven by benzene prices and high natural gas costs.
In the USA, where the most substantial price changes have been observed, market trends have shown a consistent upward trajectory. The quarter’s ending price of Maleic Anhydride has increased by 28% compared to the same quarter last year, highlighting the significant growth in the market. Furthermore, there was relatively no change from the previous quarter’s ending price in 2024, indicating a flattening of prices and the market reaching equilibrium
The price comparison a 1% increase in the first half, showcasing consistent growth only to see a downturn right at the end of the October driven by growth and geopolitical concerns. As the quarter ended, the price of Maleic Anhydride Liquid DEL Louisiana in the USA stood at USD 1390/MT, reflecting the positive and increasing pricing environment in the region.
APAC
The third quarter of 2024 has been marked by a mixed trend in Maleic Anhydride prices in the APAC region. This increase can be attributed to several key factors. Firstly, supply constraints due to disruptions in logistics and production have tightened the market. Secondly, robust demand from various industries, particularly in the automotive and construction sectors, has contributed to the price surge.
Additionally, the impact of rising crude oil prices and fluctuating currency values has added upward pressure on prices. Japan, in particular, has experienced the most pronounced price changes in the region. The overall trend in Japan has been characterized by a steady increase in prices, reflecting a positive pricing environment. The 7% increase in the previous year’s quarter ending price compared to this year, while the 8% rise from the previous quarter’s ending price highlights the surges in Maleic Anhydride prices. Plant outages and supply challenges due to tightening to control oversupply kept the prices up.
Moreover, the prices surged up by 5% due to peaking of trade as well as freight charges in August 2024, underscores the ongoing upward trajectory. The prices then dropped due to weakening demand and lower deliveries scheduled for the given time, followed by further supply tightening and cyclonic disturbances in September raising the prices at faster rate. As of the latest data, Maleic Anhydride is priced at USD 1103/MT CFR Tokyo, indicating a strong and consistent increase in pricing sentiment.
Europe
In Europe, the third quarter of 2024 witnessed a mixed trend in Maleic Anhydride prices, influenced by several key market factors. Demand for Maleic Anhydride increased due to robust performance in downstream industries like coatings and Unsaturated Polyester Resin, exerting upward pressure on prices. This was further supported by stable production costs, largely tied to benzene and high natural gas prices.
In Germany, where the most pronounced price changes were observed, the market experienced a steady upward trend. Maleic Anhydride prices at the close of the quarter were 9% higher compared to the same period last year, demonstrating significant market growth. However, prices at the end of the third quarter showed a 3% rise from the previous quarter of 2024.
A gradual price rise of 5% signaled consistent growth till the third week of September, though a major downturn occurred by the end of September, driven by geopolitical factors and continued economic expansion. As of the end of the quarter, Maleic Anhydride liquid FD Hamburg in Germany was priced at USD 1285 /MT.
MEA
The third quarter of 2024 saw mixed trends in Maleic Anhydride prices in the MEA region, driven by several key factors. Supply constraints, due to logistics and production disruptions, tightened the market. Additionally, strong demand from industries like automotive and construction further contributed to the price increase.
Rising crude oil prices and fluctuating currency values also added upward pressure on prices. Saudi Arabia, in particular, experienced the most significant price shifts in the region. The country saw a steady rise in prices, reflecting a positive pricing environment, with a 7% increase compared to the same quarter last year and an 8% rise from the previous quarter. Supply challenges, including plant outages and efforts to control oversupply, kept prices elevated.
In August 2024, a 6% price surge was driven by heightened trade and freight costs, emphasizing the ongoing upward trend. However, prices briefly dipped due to weakening demand and reduced deliveries before spiking again in September, influenced by further supply tightening and geopolitical concerns. This rapid increase reflects the region's strong pricing momentum.
For the Quarter Ending June 2024
North America
In Q2 2024, the Maleic Anhydride market in North America has experienced a mixed trajectory in pricing, driven by a confluence of factors. The quarter was characterized by steady but moderate demand from downstream industries, particularly in construction and automotive sectors. A critical influence has been the constrained supply due to limited operating rates and sporadic plant shutdowns, compelling manufacturers to elevate prices marginally to offset these disruptions. Additionally, the rising crude prices did not provide sufficient cost support for Maleic anhydride this quarter as demand woes triumphed over cost pressures.
Focusing on the USA, which has seen significant price fluctuations, the overall trend has been an increase, reflecting robust seasonality and a correlation with rising shipping costs and container shortages. The Federal Reserve's monetary policies, aimed at curbing inflation, have also played a role by reducing spending on manufactured goods and capital projects. This economic environment has led to a complex interplay of supply-side constraints and demand pressures, reinforcing the positive pricing sentiment for Maleic Anhydride.
From the previous quarter in 2024, prices in the USA have risen by 7.7% cumulatively throughout the quarter owing to higher cost crude oil. Conclusively, by the quarter's end, Maleic Anhydride prices in the USA were recorded at USD 1380/MT Liquid DEL Louisiana, reflecting a stable yet positively inclined pricing environment.
APAC
The second quarter of 2024 marked a pivotal period for Maleic Anhydride in the APAC region, characterized by a mixed trend with prices largely fluctuating. The price peaked at the end of the quarter as major deliveries and shipping schedules from China were thus aligned for deliveries and traders faced high premiums for the sale of spots on freight carriers. Several critical factors contributed to this trend. Heightened production activities in industries such as unsaturated polyester resins (UPR) and seasonal demand fluctuations, particularly in applications like paints and coatings, drove a significant increase in Maleic Anhydride consumption. Simultaneously, supply-side constraints, including limited domestic production and disruptions in raw material supply chains, exacerbated the situation, creating a notable supply shortage. Furthermore, the rising costs of benzene, a key feedstock, elevated production expenses, compelling manufacturers to adjust their pricing strategies accordingly. Focusing on Japan, the market experienced the most substantial price volatility within the APAC region. Overall trends indicated a bullish sentiment influenced by seasonal demand peaks and constrained supply chains. The Japanese market observed a 13.7% price rise throughout the quarter as Chinese markets kept the regional market. The positive sentiment was further bolstered by increased import costs and elevated global raw material prices. By the end of Q2 2024, the price of Maleic Anhydride in Japan settled at USD 1020/MT CFR Tokyo, underscoring a stable yet optimistic market outlook. This period's pricing environment was predominantly positive due to the interplay between demand surges and supply constraints, establishing a foundation for potential future increases.
Europe
In Q2 2024, the European Maleic Anhydride market experienced an overall positive pricing environment, driven by several significant factors. The quarter was marked by a steady demand from downstream sectors such as Unsaturated Polyester Resins (UPR), automotive, and construction industries. Despite moderate activity levels in these sectors, the supply chain complexities, including increased shipping costs and container shortages, exerted upward pressure on prices. Additionally, the persistently high feedstock benzene prices contributed to elevated production costs, further supporting the bullish trend in the market. Germany, in particular, witnessed the fluctuating trend with prices having cyclical price movements this quarter due to delays in deliveries and downstream consumption facing outages due to flooding in Rhineland. The country's Maleic Anhydride market saw a cumulative price rise of 8% throughout the quarter. However, the price rise was more pronounced for the latter half of the year due to high deliveries scheduled from Asia. The latest quarter-ending price for Maleic Anhydride Flakes FD Hamburg stood at USD 1275/MT, underscoring the persistent supply-side pressures and firm demand. Overall, the pricing environment in Europe during Q2 2024 was strongly influenced by supply chain constraints, raw material costs, and sector-specific demand dynamics, painting a predominantly positive outlook for Maleic Anhydride prices in Germany and the broader European market.
For the Quarter Ending March 2024
North America
In Q1 2024, the North America region witnessed an overall positive pricing environment for Maleic Anhydride, with prices experiencing an upward trend. Several factors influenced the market prices during this period. Firstly, there was a renewed cost support from upstream Benzene, which led to an increase in the manufacturing costs of Maleic Anhydride. This, in turn, contributed to the overall price increase. Additionally, there was an improvement in demand from the downstream construction and other allied industries, which further supported the price hike.
In the USA, which experienced the maximum price changes, the pricing trend followed a similar pattern. The availability of Maleic Anhydride was adequate to meet the demand from the downstream industries, but lower operating rates of manufacturing firms in the previous month due to low season demand raised supply-side concerns. However, with a drop in inflationary pressures and no subsequent hike in interest rates, manufacturing activities started to gain momentum, leading to increased demand for Maleic Anhydride.
Looking at the price changes in Q1 2024, there was a significant increase compared to the same quarter last year. The percentage change from the previous quarter in 2024 was recorded at 39%, indicating a substantial price increase. Furthermore, there was a price decline of 6% between the first and second half of the quarter. The latest quarter-ending price for Maleic Anhydride Liquid DEL Louisiana in the USA was USD 1260/MT.
APAC
Maleic Anhydride prices in the APAC region during Q1 2024 have experienced a downward trend, with Japan seeing the most significant price changes. The overall market has been influenced by various factors, including weak demand from downstream industries such as Unsaturated Polyester Resins (UPRs) and agrochemicals due to economic headwinds and low seasonality. Additionally, the global economic slowdown and uncertainties in the crisis-hit property sector in China have contributed to the subdued demand. This has led to a decrease in market prices.
In Japan specifically, Maleic Anhydride prices have seen a significant decline. Compared to the same quarter last year, prices have dropped by 23%. Furthermore, prices have also decreased by 10% compared to the previous quarter in 2024. Within the quarter, there has been a 9% decrease in prices between the first and second half.
The latest quarter-ending price for Maleic Anhydride CFR Tokyo in Japan is recorded at USD 907/MT. Overall, the pricing environment for Maleic Anhydride in Japan has been negative, with prices experiencing a consistent decrease.
Europe
Overall, the pricing environment for Maleic Anhydride in the European region during Q1 2024 was negative, characterized by decreasing prices and sluggish demand from the construction and other downstream industries. Several factors contributed to this downward trend. Firstly, there was a decrease in demand from the construction sector, which resulted in oversupply and downward pressure on prices. Additionally, demand from other downstream industries remained sluggish, further adding to the downward shift in prices. The chemical industry also faced destocking pressures, impacting demand for Maleic Anhydride. The typical winter slowdown in construction activity exacerbated the market's sluggishness. As a result, manufacturers adjusted production levels to match demand and stabilize prices.
Among the European countries, Belgium witnessed the maximum price changes in Q1 2024. The overall trend in Belgium mirrored the European market, with decreasing prices. There was a correlation between price changes and limited production activities during the year-end holidays. Despite the persistently low demand from the downstream construction sector, manufacturers in Belgium maintained higher prices to ensure profitability in the face of reduced output and high raw material costs.
Compared to the same quarter last year, Maleic Anhydride prices in Europe decreased by 23%. In Q1 2024, there was a further decline of 3% from the previous quarter. The first half of the quarter saw a price decrease of 18% compared to the second half. The quarter-ending price in Belgium was recorded at USD 1207/MT of Maleic Anhydride Flakes FD Antwerp.
For the Quarter Ending December 2023
North America
Maleic Anhydride prices in North America remained stable during Q4 2023. The market was primarily impacted by factors such as fluctuations in feedstock prices, imbalances in supply and demand, geopolitical tensions, advancements in technology, and environmental considerations.
In the USA, Maleic Anhydride prices fluctuated due to moderate demand and raised production costs. The decline was driven by sluggish global economic data, while positive demand forecasts from downstream sectors like butanediol and solvent industries supported the market. The production rate in the country remained moderate, and the overall price segmentation was distributed by the operational cost and demand outlook.
Unsaturated polymer resins and butanediol showcased average demand, leading to an incline in the final prices of Maleic Anhydride. No plant shutdown was reported in the market. The price of Maleic Anhydride Liquid DEL Louisiana in the USA for Q4 2023 was USD 1160/MT. The trend remained stable, while the percentage change from the previous quarter was no change. The price comparison of the first and second half of the quarter was not found. Overall, the market dynamics remained stable, and the demand outlook for the product remained modest.
APAC
Maleic Anhydride prices in the APAC region remained under pressure during the current quarter (Oct-Dec) due to various factors. Firstly, the moderate demand and slow operational rate increased the demand-supply gap, leading to price inclinations. Secondly, the ample supply of inventory in the benzene market in Asia put pressure on the comprehensive market for Maleic Anhydride and its derivatives within the domestic market.
Thirdly, the stable benzene prices impacted the operational rate and production cost. Among the APAC countries, Japan witnessed the maximum changes in Maleic Anhydride prices during the current quarter. The trend, seasonality, and correlation of prices in Japan were negative, indicating a downward trend in prices.
The percentage change in prices from the same quarter last year was -5%, while the percentage change from the previous quarter was 4%. The price comparison between the first and second half of the quarter was -9%. The primary reason for the price fluctuations in Japan was the weak demand and ample supply of Maleic Anhydride. The quarter-ending price of Maleic Anhydride CFR Tokyo in Japan was USD 1045/MT.
Europe
Maleic Anhydride prices in the European region remained stagnant in Q4 2023, majorly due to the slow demand and uncertainty in the economic conditions. The petrochemical industry relies heavily on natural gas and naphtha feedstocks, which led to limited processing of their preferred feedstock in the European petrochemical plants, resulting in stagnant prices. Increased competition from the Asian market also led suppliers to maintain steady prices to optimize order volumes. Belgium witnessed the most significant changes in Maleic Anhydride prices during the quarter, with a 7% price increase in the second half compared to the first half. The demand outlook was moderate amidst weak feedstock (benzene) prices resulting in a price rebound in Italy. The percentage change in the price of Maleic Anhydride in Belgium was -23% compared to the same quarter of the previous year. The current quarter saw an 11% increase in prices compared to the previous quarter. The latest quarter-ending price of Maleic Anhydride Flakes FD Antwerp in Belgium was USD 1348/MT. Overall, the stagnant prices of Maleic Anhydride in the European market were due to a slow demand and limited processing of preferred feedstocks, while Belgium witnessed a moderate price increase in the second half of the quarter.
For the Quarter Ending September 2023
North America
Maleic Anhydride prices in the North American market showcased mixed market dynamics throughout the third Quarter of 2023. The price trends of maleic anhydride in the regional market were mainly influenced by stable upstream benzene prices and a positive demand outlook from downstream industries like butanediol and solvents. Additionally, the US dollar exchange rate remained steady despite economic uncertainties domestically. In contrast, companies expanded their operations to meet growing work demands due to improved supply conditions, resulting in higher production and increased employment. Furthermore, domestic oil reserves in the United States exceeded initial expectations, driven by a significant increase in crude oil production, which reached its highest level in three years, according to data from the Energy Information Administration. Conversely, companies expanded their production capabilities, leading to increased output and higher employment levels, in response to improved supply conditions and the need to address existing work backlogs towards the quarter end. In the United States, crude oil reserves had also decreased, and prices were on a higher edge more quickly than expected, underscoring the broader challenge of meeting the growing oil demand.
Asia-Pacific
Maleic Anhydride price dynamics moved northwards amidst the inclined production cost. The Chinese market for Maleic Anhydride saw stable demand from downstream industries such as propylene glycol, butanediol, and unsaturated polymer resins, which had a proportional impact on the overall price trends. The balance between supply and demand in the domestic market was maintained by inventory levels. The supply of maleic anhydride increased only slightly. The global crude oil market experienced fluctuations and upward price trends, leading to higher prices for n-butane and benzene, which are raw materials for maleic anhydride production. This increase in raw material costs contributed to the upward movement of the maleic anhydride market. There were speculations that OPEC+, a coalition of oil-producing countries, had decided to extend their production cuts. It was anticipated that Saudi Arabia would reduce its oil production by an additional 1 million barrels until December, and Russia would also continue to decrease its crude oil output during the same period. This prolonged period of supply constraints was expected to support and strengthen the oil market. Furthermore, there was positive demand from the international market, which had an impact on the overall pricing of Maleic Anhydride.
Europe
Maleic Anhydride prices in the European market showcased a declining price trend in Q3 of 2023. This decline coincided with news that Poland's pipeline operator, PERN, had temporarily halted a section of the Druzhba pipeline responsible for transporting Russian oil to Europe due to the discovery of a minor leak. Germany also saw a slowdown in its annual inflation rate, marking a noteworthy event in the global inflation data release. Moreover, the consumer prices in Europe's largest economy had increased, in line with the figures from the previous Quarter. The demand outlook for Maleic Anhydride from the butanediol sector was moderate, influenced by slightly reduced demand in the polymer resins market. Maleic Anhydride prices in the German market dipped slightly, with operational and production costs of Maleic Anhydride remaining relatively stable. Market participants and retailers described the market situation as a gradual downturn, with retailers refraining from placing larger orders due to the slower demand outlook in downstream industries. Notably, the European Central Bank (ECB) had indicated that it might pause its series of interest rate hikes, providing potential relief to both consumers and businesses. The ECB had previously raised its key interest rates as part of its strategy to address inflation. This shift in monetary policy contributed to buyers being cautious and not placing larger orders, leading to the decline in Maleic Anhydride prices.
For the Quarter Ending June 2023
North America
Maleic Anhydride showcased gloomy behavior throughout the second quarter of 2023, as the domestic market expansion was hampered by the typical procurement from downstream (butanediol, construction, and unsaturated polymer resins) solvent industries. In contrast, the economic conditions in the US market had gotten worse due to the raging inflation pressures and fears of a financial crisis brought on by the failures of Silicon Valley and Signature Bank towards the start of the quarter. Due to the limited cost support provided by upstream raw materials, market participants have avoided significant price increases in Maleic Anhydride costs to maintain market equilibrium within the allotted time frame. However, the buyers restricted themselves from placing higher orders, compelling the manufacturers and suppliers to keep the prices on the weaker side of the price outlook. The US federation kept the interest rate stable in the market to promote the industrial output rate amidst the retarding price dynamics of Maleic Anhydride in the US market. Besides, the dollar rate settled amid the undermining monetary weakness in the North American market. Input requests fell emphatically, bringing about an excellent expansion in manufacturers' exhibitions.
Asia-Pacific
Maleic Anhydride price dynamics fell majorly towards the end of the second quarter of 2023 on account of weaker demand strength and the oscillating economic fluctuations in the country. Fragile customer spending was the fundamental component behind the retarding price dynamics of Maleic Anhydride throughout the quarter. Although the pace of central bank tightening had slowed in Q2, favoring the manufacturers on economic terms is the primary reason for the revised GDP numbers. Japanese manufacturers' otherwise relatively robust appetite for investing may also be dampened by slower global growth. Moreover, the operational activities of end-use industries requiring maleic anhydride as the supply disruption impacted the major component. Benzene is the major feed for Maleic Anhydride, and two of the major benzene producers, Hanwa TotalEnergies and SECCO petrochemicals, situated in South Korea and China, respectively, were under scheduled maintenance. Other facets governing the overall price dynamics of Maleic Anhydride were the reduced freight charges within the Asia-Pacific region, showcasing its proportional impact on Maleic Anhydride prices.
Europe
Maleic Anhydride prices in the European market showcased mixed market dynamics throughout the second quarter of 2023 as the supply shortage amidst the soft demand governed the overall market dynamics. As far as homegrown creation, market members have detailed more than adequate material accessibility in the homegrown market, while the imports have been consistent on the key ARA ports in the background of declining cargo charges. On the other hand, Dockworkers have been on strike, hampered logistics. The transit time from the Asian market was inclined as the supply chain remained disrupted from the Asian region amidst the maintenance shutdown of major upstream elements. These facets governed proportionally in impacting the production cost and rate of the product in the exporting country. As a result, the selling prices were impacted. In the second half of the quarter, the prices declined slightly as the demand-supply gap maintained the equilibrium leading to sufficient stockpile availability. Moreover, the demand for the product from butanediol and unsaturated polymer resins remained on a softer edge leading to a low-demand outlook.
For the Quarter Ending March 2023
North America
Throughout the first quarter of 2023, Maleic Anhydride prices declined on account of slow operational units and a weak demand outlook. Price drops in the US market were caused by oversupply among manufacturers and fewer queries about the product from downstream solvent and butanediol industries. Cargo supply chains have also been simplified, with smooth operational units reducing transit time for the goods to reach their destination. The freight charges between the United States and Asia have dropped dramatically, lowering the cost of importing benzene (feed) from South Korea. Bank failures in the US market have significantly influenced the US chemical sector towards the quarter end. Financial and microeconomic factors are putting pressure on businesses to keep prices as low as possible.
Asia Pacific
In the Asia-Pacific market, the overall market dynamics of Maleic Anhydride moved northwards on account of a disrupted supply chain and lower productivity rate amidst the inclined demand outlook. The Chinese market remained quiet in the first half of the first quarter on account of the Lunar New Year. Industrial operations and purchasing activity slowed in the Chinese market. However, the demand outlook for the product from other Asian countries (India, Indonesia, and Singapore) remained on the upper edge, significantly impacting the overall market dynamics of Maleic Anhydride in the Asia-Pacific region. Towards the quarter's end, the prices of Maleic Anhydride declined as the benzene (raw material) prices dipped due to weak crude oil prices proportionally impacting the overall market sentiments of Maleic Anhydride.
Europe
In the first quarter of 2023, Maleic Anhydride prices declined in the European market owing to the sluggish demand strength. The dropping feedstock (benzene) prices in the German market also reduced production costs. The product remained in low demand in the German market. The German market resumed its industrial outlook, but increasing inflation and energy prices restricted demand frequency. More emphasis was placed on improving trading capacity and improving supply bottlenecks. It was increasing the number of containers and giving enough staff to clear the backlogs. In the midst of the European market's protest rallies, there was an acute supply deficit. Trade union members were on strike, resulting in a slowing of demand and low inventories.
For the Quarter Ending December 2022
North America
During the fourth Quarter of 2022, the Maleic Anhydride prices continued to decline in the US market on the back of fluctuating upstream (benzene) prices in the regional market. Throughout the Quarter the demand outlook remained slow, along with limited import activities due to COVID lockdown curbs imposed in China. The inflation rate remained on the higher edge, consequently declining the new order quantity despite the strong dollar rate. Furthermore, the Members of the Brotherhood of Railroad Signalmen union refused to negotiate with US government officials and voted against government regulations. Towards the end of the quarter, storm Elliot created havoc in some parts of the region, declining the operational rate and demand from end users (butanediol and coating industries governing the overall market of Maleic Anhydride in the North American market.
Asia Pacific
In the Asia-Pacific market, the overall market dynamics of Malic Anhydride remained on the lower edge as the major exporting country (China) was under COVID protocols, and the demand-supply chain was hampered. The decline in feedstock (benzene) prices in the regional market governed the final prices of Maleic Anhydride in the regional market. Festive seasons such as Chinese national holidays and Christmas vacations temporarily halted the production rate accompanied by the demand for the product. The CNOOC Daxie Petrochemical, situated in Zhejiang, China, had shut down its benzene-producing plant for maintenance. The demand for the Maleic Anhydride from the coating and butanediol-producing units remained weak in the regional market.
Europe
Throughout the fourth Quarter of 2022, the market prices of Maleic Anhydride showcased stable sentiments as the suppliers received fewer inquiries about the product in the European region. Despite the continuous fall in feedstock (benzene) prices from the exporting countries (South Korea), the overall market prices of Maleic Anhydride remained stable. Operational and demand outlook was low amidst the high inflation rate and energy prices. In the mid Quarter, the prices rebounded slightly as the purchasing index improved marginally in the regional market and euro zone business activities inclined. Towards the end of the fourth quarter, the maleic Anhydride prices declined slightly as freight charges declined, accompanied by the availability of stockpiles to cater to the domestic demand.
For The Quarter Ending September 2022
North America
In the third Quarter of 2022, the Maleic Anhydride prices witnessed a mixed trend in the US market amidst fluctuating downstream demand outlook. During July, the prices of Maleic Anhydride in the domestic US market declined with the drop in feedstock benzene. Domestic benzene price fluctuations influenced the production cost of Maleic Anhydride in the US market. Reduced demand from downstream solvent sectors lowered the price of Maleic Anhydride in the US market. The factory price was also low, contributing to the decreasing cost of exported cargo. Furthermore, demand for Maleic Anhydride from downstream industries, such as the coating industry along with downstream PTMEG production, has decreased. As a ripple effect, the Maleic Anhydride Liquid prices for FOB USGC (USA) settled at USD 2120/MT.
Asia Pacific
In the Chinese market, the Maleic Anhydride market showcased a downward trend throughout the third Quarter of 2022. The drop in upstream crude prices in the domestic market affected the cost of benzene which is upstream of Maleic Anhydride. Festive weeks in China halted the operational rate of Maleic Anhydride as the manufacturers received fewer inquiries about the product from end-use businesses. Furthermore, demand for Maleic Anhydride from downstream industries, paints & coating industry, and downstream PTMEG production has decreased. The downstream derivative Butanediol manufacturers' demand for maleic anhydride also decreased. Towards the end of the third quarter, the market prices were USD 1202 per MT Ex-Ningbo (China).
Europe
In the European market, the Maleic Anhydride prices witnessed a dwindling trend in the third quarter amidst an increase in supply. According to market players, Maleic Anhydride inventories were depleted as there was an abundant supply of the product on the domestic market. Decreased demand from downstream Maleic Anhydride products, such as Butanediol and PTMEG, drove the price of Maleic Anhydride. In August and September, the lack of natural gas and high energy prices increased the cost of production for Maleic Anhydride. Domestic production in Germany is down due to rising fears around a European recession and high energy costs. Germany's major port Hamburg faced heavy congestion as vessels piled up. As a ripple effect, the prices of Maleic Anhydride Flakes and Maleic Anhydride Liquid prices for FD Hamburg (Germany) settled at USD 1780/MT and USD 1690/MT towards the quarter end.
For the Quarter Ending in June 2022
North America
During the second quarter, demand for Maleic Anhydride recovered modestly from unsaturated polymer resins and the automotive sector. However, uncertainty remained in the aftermath of the Russo-Ukraine War. Manufacturers underused manufacturing capacity owing to low feedstock availability, resulting in substantial supply limitations. Buyers turned to the overseas market to maintain inventory stocked. Maleic Anhydride prices increased despite ongoing market restrictions. In Q2 2022, the cost of maleic anhydride significantly surged in the United States due to rising benzene costs upstream. As tensions between Russia and Ukraine affected downstream costs, crude oil prices rose. Maleic Anhydride Contract FOB prices rose during the last month of the quarter.
ASIA
Maleic anhydride prices increased in the domestic market during Q2 of 2022 due to rising demand from downstream businesses, which impacted domestic consumers who depend on the commodity. Due to low inventory levels fetched by plant turnarounds, Maleic Anhydride supplies in Asia were scarce in the second quarter of 2022. As the imports from the USA decreased, further restrictions were put in place. An increase followed the swift economic recovery in the nation in demand as offtakes from the rebounding construction and automobile industries improved. Due to several Indian factories reportedly forcing a maintenance turnaround in May and June, a sharp decrease was noticed in imports from Indonesia in the nation. Additionally, rising freight costs on significant trade routes that connect Asia put additional pressure on the market prices of maleic anhydride despite its downstream solid demand.
Europe
The market for Maleic Anhydride didn't see any improvement in Q2 2022. Maleic Anhydride costs rose during the quarter as Asian imports became prohibitively expensive. Due to Europe's energy crisis, some European businesses have found it difficult to operate at total capacity this quarter. Maleic Anhydride prices have risen significantly with the overall production and raw material costs. Furthermore, rising import costs have forced domestic firms to alter their product lines to enhance profit margins. Paint and unsaturated resin demand, on the other hand, looked to be steady. However, supply increased slightly in the second quarter as exports from the United States improved and output at a significant Maleic Anhydride factory ramped up.
For the Quarter Ending March 2022
North America
Maleic Anhydride prices in the United States increased substantially in Q1 2022 as upstream Benzene, and n-butanol prices rose. Crude oil prices edged up as tensions between Russia and Ukraine impacted downstream costs. The downstream unsaturated resin market has recovered from the shutdown period. However, this quarter's downstream unsaturated resins' operating rate declined somewhat due to a lack of Maleic Anhydride. As a result, market supply remained limited, and some firms instituted pre-ordering. Because factories were low on inventory, they were under pressure to raise prices. Maleic Anhydride market is anticipated to vary at a high level in Q2 2022. Maleic Anhydride Contract FOB prices at US Gulf were assessed at USD 1590/MT during the last month of the quarter.
Asia Pacific
Due to rising demand from downstream industries, Maleic Anhydride prices have grown in the domestic market during Q1 2022, resulting in price hikes that have hurt domestic consumers who rely on the commodity. Maleic Anhydride prices have risen dramatically due to increasing total manufacturing costs and higher raw material costs. In addition, rising import costs have prompted domestic firms to alter their product lines in order to raise profit margins. Demand from the paints and unsaturated resins sectors, on the other hand, looked to remain consistent. Lower production levels combined with high demand attitudes have impacted Maleic Anhydride imports in India, resulting in a 10% rise in the domestic price of the commodity. Maleic Anhydride prices were last recorded at USD 2337/MT ex-Depot Mumbai during March 2022.
Europe
Maleic Anhydride prices are growing in Europe, owing to solid fundamentals reflected in upstream Benzene and Butane pricing. After months of decline, the European market saw a mismatch in Maleic Anhydride demand and supply at the start of the new year. As a consequence of higher crude oil costs, upstream Benzene has reached new highs, while Butane prices have risen in parallel with the winter season in Europe. Leading European producers could not fulfil the demand for Maleic Anhydride, resulting in a price increase that affected local clients. Lower production levels combined with high demand attitudes have impacted Maleic Anhydride imports in Germany, leading to a 10% increase in the domestic price of the commodity. During the final month of quarter, Maleic Anhydride Flakes FD Hamburg was assessed at USD 1910/MT, while Maleic Anhydride Liquid FD Hamburg was assessed at USD 1890/MT.
For the Quarter Ending December 2021
North America
During Q4, the demand for Maleic Anhydride from the unsaturated polymer resins and automotive sector marginally improved although uncertainty remain ed amid the aftermath of Hurricane Ida. Manufacturing capacity was underutilized by manufacturers due to limited feedstock availability, resulting in significant supply constraints. In order to keep inventories in stock, buyers moved to the international market. Price of Maleic Anhydride took an uptrend amid persistent market tightness. Maleic Anhydride Spot DDP Midwest price was reported at USD 1730/MT in December.
Asia
In India, the active buying sentiments and pre-orders from several end buyers further exerted an upward pressure upon its market fundamentals. Maleic Anhydride prices thus reached INR 139200 per MT Ex-Bhiwandi in the week ending 31st January. Feedstock Benzene prices were seemed to be balanced and buyers were more interested towards the bulk purchases. Leading Chinese manufacturing companies failed to meet demand for Maleic Anhydride, resulting in a series of price increases that affected every Indian consumer who relied on the product imports. Lower production levels combined with strong demand in China have had an impact on Maleic Anhydride imports in India, causing the domestic price of the product to rise by about 10%. This shortage in the domestic market is expected to last for another quarter.
Europe.
There was no relief in Q4 in the Maleic Anhydride market, with imports from Asia being extremely expensive, Maleic Anhydride prices have witnessed an increment during this quarter. Maleic Anhydride Liquid grade prices were last assessed as USD 1850 FD Hamburg during December last week in Germany region. Several firms in Europe have found it difficult to operate at full capacity amid the energy crisis in Europe during this quarter.
For the Quarter Ending September 2021
North America
During the third quarter of 2021, the supply outlook of Maleic Anhydride improved in the North American region due to better raw material availability. However, the increased cost of raw materials impacted the overall cost of production for Maleic Anhydride (MA) during the quarter. Major producers in the US increased Maleic Anhydride prices as they looked to maintain their margins. A hike in the demand from downstream unsaturated resins was observed in Q3 which supported sales and prices of MA throughout the quarter.
Asia Pacific
The overall market outlook for Maleic Anhydride strengthened in the Asia Pacific region during Q3 2021. The price of the key feedstock Benzene started rising in August across the Asia Pacific region due to the improvement in demand and upstream crude values, which led to a marginal rise in several Benzene derivatives. Offtakes from the automotive and construction industries remained firm throughout the quarter. In India, the price of Maleic Anhydride climbed up in Q3 backed by the recent gain in raw material across Asia. Ex-Mumbai (India) price of Maleic Anhydride escalated from USD 1725 to USD 1815 per MT during the quarter. In addition, disturbed trading activities across the major ports of India and China and rising freight costs also supported this upward price trajectory of MA during the third quarter.
Europe
The domestic Maleic Anhydride prices rose in the third quarter of 2021 in the European region caused by several planned and unplanned plant turnarounds during the quarter. The demand stood bolstered from the downstream unsaturated polyester resins (UPR) sector in this quarter as well. Regional prices observed an increment during Q3 to settle at USD 1695 per metric tonne FD Hamburg in September. Cargoes of MA from Asia eased the supply pressure in the European region.
For the Quarter Ending June 2021
North America
Global shortage of the semiconductors and supply chain issues reduced the offtakes of downstream UPR (unsaturated polyether resin) thereby impacting the demand of Maleic Anhydride from the automotive sector in the US market. Supplies were further constrained as operations at several facilities were subdued amid limited availability of the feedstock chemicals. Moreover, extended lead times and better netbacks from the European region delayed the South Asian cargoes destined to the US. The prices observed an increment in the first half of Q2 and then dived to USD 1610 per tonne FOB Texas in May.
Asia Pacific
The demand of Maleic Anhydride in the Asia Pacific region nosedived during Q2 2021 amidst lower offtakes from the downstream resins (UPR) industries. Due to several environmental restrictions, the operating efficiencies of some Chinese UPR producers reduced, thereby imparting wait and see approach among many buyers. However, supplies were sufficient to cope with the end use demand as many were left with significant inventory levels. Product enquiries from the Indian markets were stable as offtakes from the automotive sectors were impacted due to the lockdown restrictions because of the second COVID wave. Consequently, the prices observed a plunge of USD 73.8 per tonne in Q2 with Ex-Works Mumbai (India) offers settling at USD 1663 per tonne in June.
Europe
During the first half of Q2 2021, the European supplies of Maleic Anhydride were extremely short, forcing some downstream consumers to temporarily shut their production. However, slight improvement could be observed in supplies during the latter half of Q2 as shipments from the USA improved along with the ramped-up production at a major Maleic Anhydride facility. Overall, the market anticipated that the supplies tightness will likely continue till next quarter as a major producer declared turnaround in June. Demand was bolstered from the downstream unsaturated polyester resins manufacturing units who had been struggling to cope up with rising enquiries from the improving automotive sector in the region.
For the Quarter Ending March 2021
North America
Maleic Anhydride supplies in the North American region were extremely tight, as the industrial infrastructure of USA Gulf region collapsed due to freeze weather conditions in the region. However, domestic buyers seemed to be more flexible towards the Asian suppliers in the second half of the first quarter. Demand surged amid shortage in supplies, followed by better offtakes from the downstream automotive and construction sectors. Price of Maleic Anhydride took an uptrend amid persistent market tightness. FOB Texas price for April deliveries was USD 1615/MT in March, showing increment of +USD 100/MT from the February deliveries.
Asia-Pacific (APAC)
The supplies of Maleic Anhydride in Asia were tight during the first quarter of 2021, due to low inventory levels caused by the plant turnarounds starting in Q4, which ended in the first half of the quarter. Further constraints were added as the imports from the USA declined. Demand surged as offtakes from the downstream recovering automotive and construction sector improved, followed by the sharp economic rebound in the country. Sharp reduction in imports from Indonesia was noted in India as several manufacturers in the country were heard to have induced a maintenance turnaround in Feb-Mar period. In addition, increased freight costs along several trade routes connecting Asia further pressurized the market values of Maleic Anhydride amidst its sturdy downstream demand. In March, Maleic Anhydride prices surged by the USD 490/MT to settle at USD 1580/MT FOB Shanghai, China.
Europe
The European Maleic Anhydride market was tight during the Q1 of 2021, owing to the production hinderance caused amid the cold weather in the northwest European region, followed by the disrupted transportation supply chain of raw materials. Further tightness was witnessed as the USA shipments to the region declined. Demand segment however improved from the recovering automotive and construction sector. It was observed that regional players desperately tried to coverup the backlog deliveries of the previous quarter.
For the Quarter Ending September 2020
Asia
Maleic Anhydride market in Southeast Asia turned bullish on sudden fall in the spot availabilities when China, a leading exporter of the compound decided to withdraw from the global market in order to cater to its surging domestic demand. Regional supply crises were further exacerbated by the maintenance turnaround at two plants in Indonesia and South Korea, respectively. With revival in demand from the construction sector in early August, consumption of Maleic Anhydride gradually picked up in Q3. Prices in its leading consuming country China, remained high while in India prices were largely around rangebound. Prices of Maleic Anhydride CFR India remained in the range between USD 867-883 per tonne in Q3 of 2020.
North America
With the economy paving its way back, demand for Maleic Anhydride gradually improved towards the end of Q3. As the cost of feedstock Butane traced back pre-lockdown levels, margins for Maleic Anhydride came under pressure. Several investments and acquisitions were announced in the quarter. ACO Material LLC announced acquisition of the Maleic Anhydride business of the US major Ashland for USD 100 million. Market became optimistic with the completion of engineering phase of the new Maleic Anhydride plant of Polynt-Reichhold in Morris. The demand for Maleic Anhydride from the unsaturated polymer resins and automotive sector marginally improved although uncertainty remained. Buyers resisted to indulge in any fresh deals under fears of mounting inventories due to consistent increment in coronavirus cases in several parts of the region.
Europe
Ample cargoes of Maleic Anhydride from Asia eased the supply pressure in the European region caused by several planned and unplanned plant turnarounds. Spot availability narrowed by the end of the quarter as a producer who imposed a maintenance turnaround in August delayed its operations under the stress of market uncertainty. The demand however, gradually picked up with resumption in operations across the construction and automotive sector.
