Silent Downstream Market Drags Maleic Anhydride Prices in Europe
- 03-Jan-2023 11:01 AM
- Journalist: Shiba Teramoto
Germany- On account of festive holidays and partially downstream operating industries, the European Maleic Anhydride prices declined towards the end of December 2022. Furthermore, the country's economic woes and increasing unemployment rate proportionally impacted the overall market of Maleic Anhydride. Contradicting factor was the inclining feedstock (benzene) prices in the domestic market on account of accelerating crude oil prices in the international market. On the week ending 30th December 2022, the price of Maleic Anhydride settled at USD 1545 per MT, FD Hamburg (Germany).
The German market imports Maleic Anhydride from China, and the COVID restriction imposed by the Chinese government hampered the demand-supply chain in the European country. Shanghai is the world's largest container port and has continuously witnessed staff shortages. As a result, the transit time increased, creating a void in the demand-supply chain in the German market. However, the government is trying its best to ease the supply crisis and provide better facilities at the domestic ports.
Furthermore, the energy crisis amidst the dropping temperature and fear of economic recession anticipated in the first half of 2023 restricted the buyers from showcasing more interest in buying the product, and suppliers received slower inquiries about Maleic Anhydride. According to German government data, the housing sector in the country has been witnessing a pause in growth and sales as the overall business in the country remained weak throughout the last quarter of 2022. Consequently, the paints and coating sectors showcased slow demand for its upstream Maleic Anhydride market.
Market insiders anticipate a continuous incline in feedstock benzene prices in H1 of 2023 as the European market may rebound and improvise its demand-supply chain in the domestic market. However, as per ChemAnalyst, with improvised production capacity and expected improvement in Butanediol and Tetrahydrofuran (downstream sector) demand, the final prices of Maleic Anhydride may stabilize in the first quarter of 2023.