For the Quarter Ending March 2022
Maleic Anhydride prices in the United States increased substantially in Q1 2022 as upstream Benzene, and n-butanol prices rose. Crude oil prices edged up as tensions between Russia and Ukraine impacted downstream costs. The downstream unsaturated resin market has recovered from the shutdown period. However, this quarter's downstream unsaturated resins' operating rate declined somewhat due to a lack of Maleic Anhydride. As a result, market supply remained limited, and some firms instituted pre-ordering. Because factories were low on inventory, they were under pressure to raise prices. Maleic Anhydride market is anticipated to vary at a high level in Q2 2022. Maleic Anhydride Contract FOB prices at US Gulf were assessed at USD 1590/MT during the last month of the quarter.
Due to rising demand from downstream industries, Maleic Anhydride prices have grown in the domestic market during Q1 2022, resulting in price hikes that have hurt domestic consumers who rely on the commodity. Maleic Anhydride prices have risen dramatically due to increasing total manufacturing costs and higher raw material costs. In addition, rising import costs have prompted domestic firms to alter their product lines in order to raise profit margins. Demand from the paints and unsaturated resins sectors, on the other hand, looked to remain consistent. Lower production levels combined with high demand attitudes have impacted Maleic Anhydride imports in India, resulting in a 10% rise in the domestic price of the commodity. Maleic Anhydride prices were last recorded at USD 2337/MT ex-Depot Mumbai during March 2022.
Maleic Anhydride prices are growing in Europe, owing to solid fundamentals reflected in upstream Benzene and Butane pricing. After months of decline, the European market saw a mismatch in Maleic Anhydride demand and supply at the start of the new year. As a consequence of higher crude oil costs, upstream Benzene has reached new highs, while Butane prices have risen in parallel with the winter season in Europe. Leading European producers could not fulfil the demand for Maleic Anhydride, resulting in a price increase that affected local clients. Lower production levels combined with high demand attitudes have impacted Maleic Anhydride imports in Germany, leading to a 10% increase in the domestic price of the commodity. During the final month of quarter, Maleic Anhydride Flakes FD Hamburg was assessed at USD 1910/MT, while Maleic Anhydride Liquid FD Hamburg was assessed at USD 1890/MT.
For the Quarter Ending December 2021
During Q4, the demand for Maleic Anhydride from the unsaturated polymer resins and automotive sector marginally improved although uncertainty remain ed amid the aftermath of Hurricane Ida. Manufacturing capacity was underutilized by manufacturers due to limited feedstock availability, resulting in significant supply constraints. In order to keep inventories in stock, buyers moved to the international market. Price of Maleic Anhydride took an uptrend amid persistent market tightness. Maleic Anhydride Spot DDP Midwest price was reported at USD 1730/MT in December.
In India, the active buying sentiments and pre-orders from several end buyers further exerted an upward pressure upon its market fundamentals. Maleic Anhydride prices thus reached INR 139200 per MT Ex-Bhiwandi in the week ending 31st January. Feedstock Benzene prices were seemed to be balanced and buyers were more interested towards the bulk purchases. Leading Chinese manufacturing companies failed to meet demand for Maleic Anhydride, resulting in a series of price increases that affected every Indian consumer who relied on the product imports. Lower production levels combined with strong demand in China have had an impact on Maleic Anhydride imports in India, causing the domestic price of the product to rise by about 10%. This shortage in the domestic market is expected to last for another quarter.
There was no relief in Q4 in the Maleic Anhydride market, with imports from Asia being extremely expensive, Maleic Anhydride prices have witnessed an increment during this quarter. Maleic Anhydride Liquid grade prices were last assessed as USD 1850 FD Hamburg during December last week in Germany region. Several firms in Europe have found it difficult to operate at full capacity amid the energy crisis in Europe during this quarter.
For the Quarter Ending September 2021
During the third quarter of 2021, the supply outlook of Maleic Anhydride improved in the North American region due to better raw material availability. However, the increased cost of raw materials impacted the overall cost of production for Maleic Anhydride (MA) during the quarter. Major producers in the US increased Maleic Anhydride prices as they looked to maintain their margins. A hike in the demand from downstream unsaturated resins was observed in Q3 which supported sales and prices of MA throughout the quarter.
The overall market outlook for Maleic Anhydride strengthened in the Asia Pacific region during Q3 2021. The price of the key feedstock Benzene started rising in August across the Asia Pacific region due to the improvement in demand and upstream crude values, which led to a marginal rise in several Benzene derivatives. Offtakes from the automotive and construction industries remained firm throughout the quarter. In India, the price of Maleic Anhydride climbed up in Q3 backed by the recent gain in raw material across Asia. Ex-Mumbai (India) price of Maleic Anhydride escalated from USD 1725 to USD 1815 per MT during the quarter. In addition, disturbed trading activities across the major ports of India and China and rising freight costs also supported this upward price trajectory of MA during the third quarter.
The domestic Maleic Anhydride prices rose in the third quarter of 2021 in the European region caused by several planned and unplanned plant turnarounds during the quarter. The demand stood bolstered from the downstream unsaturated polyester resins (UPR) sector in this quarter as well. Regional prices observed an increment during Q3 to settle at USD 1695 per metric tonne FD Hamburg in September. Cargoes of MA from Asia eased the supply pressure in the European region.
For the Quarter Ending June 2021
Global shortage of the semiconductors and supply chain issues reduced the offtakes of downstream UPR (unsaturated polyether resin) thereby impacting the demand of Maleic Anhydride from the automotive sector in the US market. Supplies were further constrained as operations at several facilities were subdued amid limited availability of the feedstock chemicals. Moreover, extended lead times and better netbacks from the European region delayed the South Asian cargoes destined to the US. The prices observed an increment in the first half of Q2 and then dived to USD 1610 per tonne FOB Texas in May.
The demand of Maleic Anhydride in the Asia Pacific region nosedived during Q2 2021 amidst lower offtakes from the downstream resins (UPR) industries. Due to several environmental restrictions, the operating efficiencies of some Chinese UPR producers reduced, thereby imparting wait and see approach among many buyers. However, supplies were sufficient to cope with the end use demand as many were left with significant inventory levels. Product enquiries from the Indian markets were stable as offtakes from the automotive sectors were impacted due to the lockdown restrictions because of the second COVID wave. Consequently, the prices observed a plunge of USD 73.8 per tonne in Q2 with Ex-Works Mumbai (India) offers settling at USD 1663 per tonne in June.
During the first half of Q2 2021, the European supplies of Maleic Anhydride were extremely short, forcing some downstream consumers to temporarily shut their production. However, slight improvement could be observed in supplies during the latter half of Q2 as shipments from the USA improved along with the ramped-up production at a major Maleic Anhydride facility. Overall, the market anticipated that the supplies tightness will likely continue till next quarter as a major producer declared turnaround in June. Demand was bolstered from the downstream unsaturated polyester resins manufacturing units who had been struggling to cope up with rising enquiries from the improving automotive sector in the region.
For the Quarter Ending March 2021
Maleic Anhydride supplies in the North American region were extremely tight, as the industrial infrastructure of USA Gulf region collapsed due to freeze weather conditions in the region. However, domestic buyers seemed to be more flexible towards the Asian suppliers in the second half of the first quarter. Demand surged amid shortage in supplies, followed by better offtakes from the downstream automotive and construction sectors. Price of Maleic Anhydride took an uptrend amid persistent market tightness. FOB Texas price for April deliveries was USD 1615/MT in March, showing increment of +USD 100/MT from the February deliveries.
The supplies of Maleic Anhydride in Asia were tight during the first quarter of 2021, due to low inventory levels caused by the plant turnarounds starting in Q4, which ended in the first half of the quarter. Further constraints were added as the imports from the USA declined. Demand surged as offtakes from the downstream recovering automotive and construction sector improved, followed by the sharp economic rebound in the country. Sharp reduction in imports from Indonesia was noted in India as several manufacturers in the country were heard to have induced a maintenance turnaround in Feb-Mar period. In addition, increased freight costs along several trade routes connecting Asia further pressurized the market values of Maleic Anhydride amidst its sturdy downstream demand. In March, Maleic Anhydride prices surged by the USD 490/MT to settle at USD 1580/MT FOB Shanghai, China.
The European Maleic Anhydride market was tight during the Q1 of 2021, owing to the production hinderance caused amid the cold weather in the northwest European region, followed by the disrupted transportation supply chain of raw materials. Further tightness was witnessed as the USA shipments to the region declined. Demand segment however improved from the recovering automotive and construction sector. It was observed that regional players desperately tried to coverup the backlog deliveries of the previous quarter.
For the Quarter Ending September 2020
Maleic Anhydride market in Southeast Asia turned bullish on sudden fall in the spot availabilities when China, a leading exporter of the compound decided to withdraw from the global market in order to cater to its surging domestic demand. Regional supply crises were further exacerbated by the maintenance turnaround at two plants in Indonesia and South Korea, respectively. With revival in demand from the construction sector in early August, consumption of Maleic Anhydride gradually picked up in Q3. Prices in its leading consuming country China, remained high while in India prices were largely around rangebound. Prices of Maleic Anhydride CFR India remained in the range between USD 867-883 per tonne in Q3 of 2020.
With the economy paving its way back, demand for Maleic Anhydride gradually improved towards the end of Q3. As the cost of feedstock Butane traced back pre-lockdown levels, margins for Maleic Anhydride came under pressure. Several investments and acquisitions were announced in the quarter. ACO Material LLC announced acquisition of the Maleic Anhydride business of the US major Ashland for USD 100 million. Market became optimistic with the completion of engineering phase of the new Maleic Anhydride plant of Polynt-Reichhold in Morris. The demand for Maleic Anhydride from the unsaturated polymer resins and automotive sector marginally improved although uncertainty remained. Buyers resisted to indulge in any fresh deals under fears of mounting inventories due to consistent increment in coronavirus cases in several parts of the region.
Ample cargoes of Maleic Anhydride from Asia eased the supply pressure in the European region caused by several planned and unplanned plant turnarounds. Spot availability narrowed by the end of the quarter as a producer who imposed a maintenance turnaround in August delayed its operations under the stress of market uncertainty. The demand however, gradually picked up with resumption in operations across the construction and automotive sector.