Maleic anhydride

The Asian maleic anhydride (MA) market has largely balanced supply and demand.

MA prices largely fluctuate with feedstock benzene and butane costs and are also affected by the demand and supply balance.

Occasional tightening of supply because of plant maintenances and shutdowns may result in firm MA prices. Maintenances are planned between April and June and in the fourth quarter.

Seasonal peak demand from the downstream unsaturated polyester resin (UPR) sector is expected to be between March and May, as activities in the construction industry typically ramp up during summer. However, the slow global economy could continue to weigh on construction activities, limiting the increase in demand for MA during the peak season, market players said. 

A Taiwanese producer is aiming to start commercial production at its new MA capacity in the first quarter. The start of commercial production has been postponed several times. Hence, most market players are keeping a close watch on the developments of the new capacity. Additional supply in the market from the new capacity is likely to provide more competition among sellers and lower MA prices.

Updated to mid-February 2013