Maleic Anhydride Prices to Extend Bullish Run into February in India on The Back of Rising Feedstock

Maleic Anhydride prices in the Indian market are rising due to strong fundamentals indicated by upstream Benzene being at a 5-year high and rising crude oil prices. As per ChemAnalyst database, Benzene spot prices Ex-Mumbai location were reported as INR 77000/MT, which in turn has pressurised the costs of Maleic Anhydride. The upward trend that began in January is expected to continue till late weeks of February. For the first week of February, offers of Maleic Anhydride Ex-Depot Mumbai were reported in the range of INR 160-163/tonne in India. The domestic market observed a mismatch in Maleic Anhydride demand and supply at the start of the new year, after months of decrease.

A trader associated with an Indian producer pointed out that import prices here are tracking the strength in markets throughout the world, in addition to the surge in energy values. Another trader stated that, “Asian offers have dried up in the run-up to the Chinese New Year (CNY) this week. We've also heard reports of production problems in major Maleic Anhydride producing nations like Malaysia and Indonesia, which might limit supplies in the region”. In the Asian Pacific region, upstream Benzene prices have attained significant gains in the last week due to stronger crude prices coupled with the improved demand from the regional as well as international markets.

Additionally, high international freight prices have restricted arbitrage opportunities, resulting in a market inventory scarcity. As per ChemAnalyst, “The present pricing situation is predicted to be sustained in the next week, with higher upstream values expected to preserve the current price position and regional demand from downstream industries is anticipated to increase. As a result of this, Maleic Anhydride prices in domestic markets are expected to skyrocket in the coming week. Following a stop in market activity in February due to Chinese Lunar holidays and Winter Olympics limitations, Maleic Anhydride prices are projected to stay stable to firm in India. Simultaneously, any halt in manufacturing might result in a steady price increase.”