Chinese Maleic anhydride enterprises are in the reservoir during the Spring Festival, but the post-holiday market still has the opportunity to push up under the pre-sale operation before holiday.
Introduction: As the maleic anhydride factories break the traditional practice of production stop and maintenance before and after the Spring Festival, the manufacturers has accumulated pressure under normal production during the Spring Festival, but because of the pre-sale operation before the year to ease the pressure of post-holiday signing, superposition the strong performance of crude oil and other factors, the supplier has a certain initiative, there is a certain opportunity to rise.
Maleic anhydride supply is basically stable
Before the Spring Festival, Hengli Petrochemical once again added maleic anhydride, 210,000 tons began to operate, and the effective production capacity of butane maleic anhydride has reached 1.8 million tons, and because the factory broke the maintenance practice before and after the Spring Festival, the production capacity of the maintenance plan during the Spring Festival only involves 370,000 tons, accounting for 20.56% of the effective production capacity of butane method, and the remaining devices are basically normal production. Although the factory has inventory pressure, some factories have changed from the production of liquid anhydride to the production of solid anhydride, some factories have pre-sold the production during the Spring Festival in advance, and the pressure of signing orders after the holiday has been eased, so that the maleic anhydride factory still has an upward trend of operation after the holiday.
At present, maleic anhydride is still in the period of capacity expansion, and the operating capacity of maleic anhydride in 2024 increased significantly compared with the same period last year. In the week after the end of the festival in 2024, the operating capacity increased by 30.57% compared with the same period last year, and the supply capacity was significantly improved. However, before the Spring Festival, some devices were unexpectedly stopped, and temporary short stops, as well as pre-sale operations, so that the regional sales pressure of the supplier could be eased, especially before and after the Spring Festival, the downstream of maleic anhydride was prepared in advance, and the factory still had a certain say in the price under the support of factors such as the holiday.
The main downstream began to resume production preparations
During the Spring Festival, the main downstream UPR production is basically stagnant. After returning to the city according to the national holiday, local resin factories have begun to resume production and continue to execute orders that have not been completed before the Spring Festival, but raw material orders have been prepared in advance before the holiday, and the downstream centralized replenishment trend is not clear. In addition, during the Spring Festival, the trend of crude oil is strong, compared with the rise before the festival, the related varieties of pure benzene and styrene outside the rally is strong, the opening price of the first day after the festival has also strengthened again, the remaining raw materials of resin also have the intention to push up the purchase of resin raw materials and production costs will increase after the festival, pay attention to the follow-up of new orders at the terminal.
After the successful production of 210,000 tons of maleic anhydride in Hengli Petrochemical, another downstream BDO, the BDO supporting device will be opened in the future. According to the post-festival information, the BDO device is currently not running normally during debugging, so we will pay attention to the subsequent progress.
The market was also affected by stronger raw materials and expected production delays
During the Spring Festival, the persistence of supply concerns caused by geopolitical conflicts drove oil prices to strengthen, and WTI prices rose by 3.06% from the pre-holiday. Before and after the Spring Festival, the performance of pure benzene and styrene continues to be strong, and the price of pure benzene and styrene is significantly supported. If the bulk opening is overall good, it will also drive the trading operation of other chemical varieties after the year, or enhance the performance of the industrial chain.
In addition to Hengli’s new capacity operation before the Spring Festival, Wanhua also has a feeding plan after the New Year, but after the festival, we understand the delay of Wanhua’s production time, pay attention to the subsequent progress of the plant, and the expected new supply is delayed, which is also conducive to the operation of the existing maleic anhydride plant.
(Source: Oilchem)