Maleic Anhydride Maintains Its Current Trend in the Indian Market
- 20-Apr-2022 11:51 AM
- Journalist: S. Jayavikraman
The price of Maleic Anhydride climbed up this week in India, backed by the recent gain in Benzene prices across Asia. The current quick rise in Maleic Anhydride market pricing has pushed the producer’s profitability to a new high this year. Maleic Anhydride prices have grown in the worldwide market due to rising demand from downstream sectors, resulting in price hikes that have impacted local consumers who rely on the product.
Maleic Anhydride prices have risen dramatically due to increasing total manufacturing costs and higher raw material costs. Domestic firms have changed their offers to increase profit margins in response to rising import costs. Demand from the paints and unsaturated resins sectors, on the other hand, appeared to remain consistent. Lower production levels combined with solid demand sentiments have impacted Maleic Anhydride imports in India, resulting in an increase in the domestic rates of the commodity during Q1 2022. The progress has been practically linear, especially in the last two weeks. Although the rise in Maleic Anhydride pricing is the primary driver of profit growth, the comparatively low cost of raw materials has set the stage for significant profits in the current market. Recently, exports of pure benzene, a primary feedstock for Maleic Anhydride, have continued to arrive in Hong Kong, putting further pressure on domestic ports.
As per ChemAnalyst, "Maleic anhydride supply is still tight in the market, and manufacturers' delivery cycles have been extended until the middle to end of this month. There is little enthusiasm for shipments in the short term, and there is still room for external quotations to be adjusted upward. While international oil prices are rising, the fundamentals of upstream raw materials remain strong, making big movements difficult to predict. As a result, it is projected that the current high profitability of maleic anhydride processes will last for a long period."