Maleic Anhydride prices in the Indian Market Increased on the Back of Rising Feedstock Benzene
- 04-Mar-2022 2:55 PM
- Journalist: S. Jayavikraman
Maleic Anhydride prices have risen in the domestic market as a result of increased demand from downstream sectors, despite the raw material being in low supply. Maleic Anhydride prices have risen considerably because of higher total manufacturing costs and higher ingredient expenses. In the meantime, downstream demand from the coatings and unsaturated resins industries was seen as stable. Maleic Anhydride Ex-Depot Mumbai prices were last reported at INR 170770/MT, while Ex-Bhiwandi INR 166390/MT during 4th march 2022.
Leading Indian producers were unable to meet the demand for Maleic Anhydride, resulting in price rises that impacted domestic consumers who rely on the product. Maleic Anhydride imports in India have been affected by lower production levels mixed with strong demand sentiments, resulting in a 10% increase in the domestic price of the commodity. Furthermore, on February 21st, there was a cyber-attack on Nhava Sheva Port, prompting the management to halt port operations until the attack is resolved, further disrupting the supply chain.
The rising cost of imported goods has prompted domestic manufacturers to alter their offers to increase profit margins. Furthermore, demand fundamentals for the product in the home market remained stable, as the Omicron crisis turned out to be less severe than anticipated. Several factors are driving the sharp increase in crude oil prices, including increased global demand, low stockpiles, and geopolitical tensions between Russia and Ukraine, all of which are causing uncertainty in the Indian market. As a result of these market circumstances, crude oil prices surged effectively across the globe, causing downstream derivatives costs to rise.
Furthermore, high international freight costs have restricted arbitrage opportunities, resulting in an inventory deficit in the Indian market. "The current pricing environment is anticipated to be continued in the coming week," according to ChemAnalyst, "with better upstream values expected to maintain the current price position and regional demand expected to climb from downstream businesses. Maleic Anhydride prices in Indian marketplaces are projected to rise dramatically in the coming week because of this."