European Maleic Anhydride prices on an upward rally, backed by higher feedstock
- 17-Jan-2022 7:09 PM
- Journalist: Harold Finch
Due to solid fundamentals demonstrated by upstream Benzene and Butane, Maleic Anhydride prices in Europe are on the rise. After months of decline, the European market saw a mismatch in Maleic Anhydride demand and supply at the start of the new year. With rising crude oil prices, upstream Benzene has reached new highs, while Butane prices have also risen with the onset of the winter season in Europe.
The price of Maleic Anhydride in the domestic market has surged due to increased demand from downstream industries while the raw material was seen to be on short of inventories. Due to increased overall manufacturing costs and higher input costs, Maleic Anhydride prices have risen dramatically. Meanwhile, the downstream demand from coating and unsaturated resins industries was also considered to stable. Maleic Anhydride Flakes prices for FD Hamburg were last assessed at USD 1947/MT and Maleic Anhydride Liquid grade prices reported as USD 1890/MT FD Hamburg.
Leading European producers failed to meet demand for Maleic Anhydride, resulting in a turmoil of price increases that affected domestic consumers who relied on the commodity. Lower production levels combined with strong demand sentiments have had an influence on Maleic Anhydride imports in Germany, causing the domestic price of the commodity to rise by roughly 10%.
Furthermore, high international freight charges have reduced arbitrage opportunities resulting in a shortage of inventories in the European market. According to ChemAnalyst, “The current pricing scenario is forecasted to be sustained in the coming week, with stronger upstream values expected to preserve the current price position, and regional demand expected to increase from the downstream industries. Because of this, Maleic Anhydride prices in European markets are expected to climb significantly in the coming week."