Updated to mid-November 2009
Asian market review by Cheong Su Yeen, ICIS pricing
Asian spot prices of briquette grade maleic anhydride (MA) remained volatile during the mid-August to mid-November period amid strong energy and feedstock benzene and butane values against weak buying interest.
Trading activity in the southeast Asian (SE Asia) region remained largely subdued due to the Muslim fasting month of Ramadan in August, followed by the Eid Al Fitr holidays in September.
Tight supply due to scheduled turnarounds at regional plants and climbing raw material costs in October prompted sellers to maintain a strict price discipline. Several buyers emerged to secure cargoes ahead of further increments.
Spot prices in southeast Asia were assessed at $1,100-1,140/tonne CFR (cost and freight) SE Asia on the week ended 6 November.
Meanwhile, Japanese contract prices for liquid maleic anhydride on delivered basis remained stable at yen (Y) 135-150/kg amid unchanged fundamentals in the downstream segment.
European market review by Mark Victory, ICIS pricing
European MA prices rose rapidly from August to mid-November, due to a raft of production outages throughout the period tightening supply, higher feedstock costs and a recovery in demand from the end-use automotive and marine industries.
From the end of October, the news that BASF intends to discontinue MA production at the end of 2009, and a resultant strike leading to the company declaring force majeure which lasted from 22 October until 9 November, dominated the market, further pushing prices up.
Quarter four contract prices increased by €150-220/tonne, to €1,410-1,550/tonne FD (free delivered) NWE (northwest Europe), as a result. Spot prices saw the biggest rises, with liquid spot increasing by €400/tonne between 7 August and 6 November because of production issues and the BASF announcement.
US market review by Ryan Hickman, ICIS pricing
After steady pricing from February to August, the MA market in the US saw its first increases of the year in September and October.
The downstream unsaturated polyester resins (UPR) market was hit as hard as any chemical sector from the dismal housing, automotive and boating markets and effected demand for MA.
But throughout the year MA raw material butane prices continued to climb and producers moved in September to raise prices by 3 cents/lb. The market also moved up by 2.50 cents/lb in October as a result of strengthening butane.
Based on contractual agreements and competitive situations, price increases varied but the market consensus was that prices went up by an average of 5.50 cents/lb in the two-month period.
Butane prices remained high into November, but producers bypassed an increase and predicted December price hikes would be slim amid the poorest demand time of the year for MA.
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Maleic anhydride
Uses and Outlook
Nearly 50% of world maleic anhydride (MA) output is used in the manufacture of unsaturated polyester resins (UPR). Chopped glass fibres are added to UPR to produce fibreglass reinforced plastics which are used in a wide range of applications such as pleasure boats, bathroom fixtures, automobiles, tanks and pipes. However, the UPR market is affected by general economic conditions being tied to the construction, automobile and marine industries.
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Maleic anhydride
Process Technologies
Maleic anhydride (MA) is produced commercially by the oxidation of benzene or butane. Although the butane-based process is considered to have superior economics and is the preferred route, Lonza claims its fixed bed benzene route is competitive in low cost revamps and medium-size plants. However, when the cost of benzene is high, this route is much less attractive.
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