🔍 What is the unsung hero behind high-quality plastics, coatings and construction materials? — Maleic Anhydride (MA)!

“Considering the current supply and demand pattern, market conditions, and industry dynamics of the maleic anhydride sector, the price of maleic anhydride is unlikely to decline in the short term (1-3 months); instead, it is expected to maintain a steady or modestly rising trend. The core reasons, based on the industry’s current situation, are as follows:

Industry climate support: In the first quarter of 2026, China’s domestic chemical industry saw a moderate recovery. Since March, driven by global chemical supply chain fluctuations, the prices of maleic anhydride and other chemical products have shown an upward trend. The improving industry climate provides price support, making a near-term correction unlikely.

Relatively balanced supply and demand: Although domestic maleic anhydride capacity has expanded significantly since 2023, downstream demand is gradually being released – with steady growth in unsaturated polyester resin (the largest consumption area for maleic anhydride), fine chemicals, and other fields. This has helped absorb existing capacity to some extent, alleviating previous overcapacity pressures and improving the supply-demand mismatch, thereby supporting price stability.

Rigid cost-side support: The mainstream production process for maleic anhydride is the n-butane oxidation method (accounting for 92.33% of production). Production costs are closely tied to upstream raw material prices, particularly n-butane. Recently, chemical raw material prices have generally risen, making cost pressures difficult to ease, which directly limits the downward space for maleic anhydride prices.

Market sentiment and spot market support: Spot market supply is currently ample, but supplier quotations remain stable. Additionally, downstream enterprises are stocking up as needed, with no signs of large-scale inventory dumping or panic selling. Market sentiment is stable, further consolidating price stability, with no clear downward pressure in the short term.

Supplementary note: In the long run, if the planned addition of 1.5 million tons of new capacity in 2025 is fully commissioned, it may exacerbate overcapacity and affect price trends. However, in the short term (1-3 months), influenced by existing supply-demand dynamics, costs, and the industry climate, the probability of a price decline is extremely low.