With surging upstream values, Maleic Anhydride Prices spikes up in the global market
- 30-Mar-2022 4:02 PM
- Journalist: Nicholas Seifield
The price of Maleic Anhydride has risen due to a combination of tight supply and ongoing logistical challenges. Maleic Anhydride's rising cost significantly impacts the downstream UPR's (Unsaturated Polyester Resins) stocking sentiment. The supply situation of the Maleic Anhydride market continues to fuel the significant rise, bringing the price severely near to the record high.
From the standpoint of Maleic Anhydride trends in the first quarter of 2022, prices have constantly seen upward trends because of the low availability. Furthermore, the feedstock Benzene and upstream Crude oil quotations have remained unchanged at higher levels. The geopolitical situation has had an unpredictably negative impact on the downstream textile and garment industry. The downstream Polyester and Nylon fiber prices in the downstream market have reached new highs. As a result, both domestic and international purchasers were apprehensive about placing orders.
Benzene is the major feedstock for Maleic Anhydride. Its costs have been rising in China since the recent COVID epidemic, which resulted in lockdowns and disrupted commercial activities in the southern regions. Because Shenzhen is China's second-largest port, the suspension has impacted the import and export. The container scarcity continued to exist. Freight charges have climbed four to five times in recent years and are expected to rise further.
The US administration has announced that it would no longer purchase Russian products. Crude supply has been harmed due to the ban; the price has risen, hurting derivatives such as Benzene. End-use sectors, such as the packaging industry, are seeing increased demand. The US government has planned to expand the textile industry to raise money, increasing Maleic Anhydride demand.
According to ChemAnalyst, "Maleic Anhydride prices are expected to grow in the global market in the coming weeks as the price of petroleum rises owing to the ongoing Russia-Ukraine conflict. Crude oil prices may also raise freight costs, causing the trading price to rise. If the supply scarcity persists due to the Chinese shutdown, feedstock Benzene prices may rise, influencing Maleic Anhydride prices even more."