Despite Feedstock Volatility, Maleic Anhydride Market Remains Stable
- 28-Apr-2022 3:34 PM
- Journalist: Peter Schmidt
Maleic Anhydride prices in China have been steady since the mid of April, despite volatility in the feedstock Benzene market. In contrast to America and Europe, benzene prices in Asia have been volatile for a long time. The downstream Unsaturated Resin market has recently become more active. The market has remained stable due to traders' delayed buying sentiments in the Chinese market. As a result, after considerable changes, Maleic Anhydride prices in the Chinese domestic market have remained steady. The CFR Shanghai Benzene price was USD 1140/MT in the third week of April. Maleic Anhydride was flat at USD 1766/tonne on April 26th, compared to the daily tally, and declined by 2.78 percent month over month.
Following the decision to ban Russian oil and gas imports, the cost drag from higher Benzene and n-butanol prices was offset by a considerable increase in demand coupled with excessive energy prices. Maleic Anhydride demand has been strong since the start of the year, with spot volumes skyrocketing in the first week of April. Most buyers restocked the material in anticipation of higher future costs due to the war in Eastern Europe that broke out in the latter week of February. However, supply is still tight, with supplier inventories running low in March and April. Because of the lack of spaces available in ships, export warehouses remained stocked.
As per ChemAnalyst, "Given the present pattern in Crude price movement, Maleic Anhydride prices could rise dramatically in the next few weeks. Brent crude prices have risen to around $106 per barrel. In the previous session, crude prices climbed by roughly 3% in volatile trading. Oil prices gained in the early Asian trade on Wednesday, extending gains from the previous session which “would boost the country’s economy”, as stated by China’s Central Bank. On the other hand, concerns about demand weighed on futures as officials in Beijing rushed to contain a nascent COVID-19 outbreak and avoid the same crippling city-wide lockdown that has engulfed Shanghai for a month."