Market and product

Spot maleic anhydride (MA) prices in southeast Asia may extend their gains as tight supply continues to prompt sellers to hike offers, market sources said.

On 15 April, MA was assessed at $930-945/tonne CFR (cost and freight) SE (southeast) Asia, up $15-30/tonne week on week, according to ICIS data.

Prices have steadily climbed since 4 March, gaining about 14% over a six-week period, the data showed.

“Available quantity is limited,” said a northeast Asian producer, who was offering MA at $960/tonne CFR SE Asia with no discount.

Most producers have low inventory amid turnarounds and production issues at some plants and were seeking higher prices for their available material, market sources said.

“We do not have April stock. For May cargoes, we will offer at the end of the month (April),” said a separate northeast Asian producer.

In Japan, major MA producer Nippon Shokubai is currently conducting turnaround at its 35,000 tonne/year Himeji plant. Details on shutdown duration were not immediately available.

Meanwhile, healthy demand from India, from which northeast Asian producers are receiving enquiries, is also contributing to the overall bullish mood in the southeast Asian MA market.

“Our offer in southeast Asia is $1,000/tonne CFR SE Asia, since we managed to deal at that level in India,” said a third northeast Asian producer.

“April [cargoes are] sold out, now selling May cargoes. We sold some to India at $1,000/tonne CFR India,” said a fourth northeast Asian producer.

India typically imports MA from China, Taiwan and Korea.

But China’s MA prices have enjoyed stronger gains of about 16% between 4 March and 15 April to yuan (CNY) 6,800-6,900/tonne ex-tank, prompting the country’s producers to focus on the domestic market, where key downstream unsaturated polyester resin (UPR) plants are beefing up production.

With China not exporting MA, Indian buyers flock to the Taiwanese and Korean markets for additional cargoes, industry sources said.

“Based on the enquiries I have received, the demand [in India for us] is about 1,000 tonnes for May cargoes,” said a fifth northeast Asian producer.