For the Quarter Ending June 2021
During the second quarter of 2021, supplies were further constrained as the operations in several facilities was shunned as the production of feedstock Maleic Anhydride was subdued in the time period. Besides, extended lead times and better netbacks from the European region delayed the South Asian cargoes to the US. Demand surged from the downstream food industry and offtakes were consistent from the pharmaceutical sector, as a repercussion of tightness in the overall North American market. Thus, prices of Malic Acid remained in up stride during the second quarter of 2021.
Feeble offtakes of Maleic Anhydride in the Asia Pacific region from the downstream Unsaturated Polyether Resins (UPR) industry kept the feedstock inventories levelled up in the second quarter of 2021. Supplies remained sufficient to cope up with the end use demand with significant level of the inventories of Malic Acid, however due to the rising inflation prices of Malic Acid in China, prices observed a marginal uptrend with Ex-Work Nanjiang prices were settled at USD 2592 per tonne in June. Whereas the enquiries from the Indian market were stable as the offtakes from the food additives and pharmaceutical sector were consistent.
During the second quarter of 2021, supplies of Maleic Acid in the European market were extremely short during the first half of the quarter due to limited availability of the key feedstock Maleic Anhydride. However, the supplies improved slightly in the later half as the shipment from the USA improved along with the ramp up of production in a major Maleic Anhydride facility. Further it is anticipated that the supplies tightness is likely to continue till next quarter as a major producer declared a turnaround in June.
For the Quarter Ending March 2021
Maleic Acid market in the North American region was severely impacted during the first quarter of 2021, owing to the supply shortage as the domestic production remained hampered due to the extreme weather conditions in the Texas and nearby Gulf region. Extreme shortage of feedstock and power outages at several plant forced the Maleic Acid manufacturers to shut down the production. Shortage of feedstock Maleic Anhydride was reported with some Asian material flowing to the US but that too limited amidst weather related constraints.
During the first quarter of 2021, Asia Pacific Maleic Acid market witnessed mixed sentiments. The supplies were tight to balance due to the low inventory levels in the first half of the quarter amid ongoing turnaround in several regional plants. However, shortages eased by the end of the Q1 as several plants restarted with efficient throughput and inventories level replenished. Demand surged in the first quarter owing to better offtakes from the downstream automotive and construction sectors.
Supplies of the Maleic Acid remained tight since the previous quarter and augmented during the first quarter of 2021. Reduced imports from the USA, due to the production fallouts amid the severe weather conditions in February disrupted the transportation of raw material for. Demand strengthened from the downstream automobile and construction sector as the industries thrived to recover the loss incurred in COVID lockdown previous year.