Maleic Anhydride Prices Tumbling in The Global Market Amidst Muted Demand
- 21-Jul-2022 4:03 PM
- Journalist: Yage Kwon
Germany: In the third week of July, the price of Maleic Anhydride in the international market has been continuously falling, supported by ample supplies and weak demand. The rising production rates among the manufacturing units also caused prices to decline with subdued market sentiment. A decrease in demand for downstream butanediol derivatives has also hindered market fundamentals.
Additionally, the lowering in import costs from Germany, a significant European exporter, is the cause of the decrease in Maleic Anhydride prices in European nations, including France, the Netherlands, Italy, and the UK. Due to the recent deterioration in ties between Russia and Ukraine, specific oil fields have been shut down, and crude oil prices have changed.
The global market for Maleic Anhydride is experiencing a stalemate between supply and demand, and cost support is eroding. In addition, the domestic market price reduction was influenced by the conflict between Russia and Ukraine and changes in freight costs.
Maleic anhydride stocks were piling up in warehouses due to multiple supply chain disruptions and insufficient downstream demand. As the previous quarter draws to an end, manufacturers are scrambling to sell off their remaining goods so they can start production for the following one. Manufacturers are fine with discounting their products to use up extensive inventories. As a result, the local market's value of maleic anhydride has decreased.
Furthermore, considering that China is one of the leading exporters of maleic anhydride to India, at roughly 22.8 percent, the Indian market is likely to follow the Chinese market pattern. The Indian market is beginning to resemble the Chinese market as supply interruptions improve daily.
In conclusion, according to ChemAnalyst, the price of Maleic Anhydride has recently declined worldwide. However, there has been a noticeable weekly decline. Similar to butanediol, THF, and PTMEG, the value of other maleic anhydride derivatives has declined for a while.