As of September 2026, China’s maleic anhydride (MA) market is trapped in a complex industry cycle marked by high feedstock costs, sluggish domestic consumption and large‑scale production adjustments. After a sharp price surge driven by geopolitical factors in March 2026, maleic anhydride prices have gradually corrected. Benchmark domestic prices have fallen to RMB 8,200/ton. Although historic production cuts have underpinned market prices, downstream purchasing sentiment stays subdued. Surging exports deliver partial relief for oversupply pressure, yet upcoming unit restarts and potential n‑butane price declines leave the medium‑term outlook cautious‑to‑bearish. Readers who wish to discuss maleic anhydride supply, technical parameters or bulk cooperation can reach our team viaAchilles Chemical contact page.
Market Overview: Sharp Price Swings Across 2026
China’s maleic anhydride market has witnessed dramatic volatility throughout 2026. Following the March geopolitical‑fueled price peak, spot values trended downward continuously. By September 1, 2026, the national benchmark price for maleic anhydride settled at RMB 8,200 per ton, dropping 4.65% compared with the early‑August level of RMB 8,600/ton.
Looking back over the past 12‑month cycle, maleic anhydride prices fluctuated widely between RMB 5,112/ton and RMB 8,850/ton. The average market price for H1 2026 reached roughly RMB 6,681/ton, rising 5.93% year‑on‑year. The core characteristics defining the current market landscape are expensive raw‑material inputs, lacklustre domestic downstream demand, and unprecedented production curtailments. Domestic manufacturers have actively reduced output to mitigate heavy operational losses and prevent further price collapses.
Supply‑Demand Dynamics: Record‑Low Operating Rates and Sluggish End‑User Consumption
Supply Side: Unprecedented Industry‑Wide Production Cuts
Maleic anhydride operating rates have slumped toward historic lows in 2026, as manufacturers take proactive measures against poor margins.
• Q1 2026: average operating rate around 45.7%
• May 2026: dropped to approximately 28.86%, approaching historical bottom levels near 20%
• Late May 2026: 28.43%, a steep decline from 46.67% recorded in late March
• June 2026: fell further to 21.7%; butane‑route units ran at 27.4%, while benzene‑route facilities only hit 12.1%
Daily national output tumbled from 5,064 tons in March down to roughly 3,144 tons by late May. Additional maintenance work covering about 240,000 tons per‑annum capacity may push overall operating rates close to 23%, pulling daily production down to 2,500 tons.
Clear divergence exists between two mainstream production routes. The butane‑based process accounts for more than 95% of total domestic capacity. Key players including Qixiang Tengda and Huizhou Yuxin keep facilities operational but suspend public spot quotations, prioritizing long‑term contract delivery and export shipments.
The benzene‑route, with remaining capacity of around 280,000 tons per year, continues suffering sustained deep losses. Most benzene‑route installations such as Shanxi Hengqiang have been idled for long periods, and this manufacturing route is facing gradual phase‑out across China.
Demand Side: Persistent Weakness From UPR and BDO Downstream Sectors
Domestic maleic anhydride consumption remains under heavy pressure. Total domestic MA consumption for H1 2026 stood at approximately 633,800 tons, a year‑on‑year decrease of 8.53%. Domestic downstream end‑use volume fell even more sharply by 19.74% to 468,000 tons.
Unsaturated Polyester Resin (UPR), the largest downstream consumer for maleic anhydride, operated at subdued utilisation rates during the August summer off‑season, accompanied by slow construction‑sector activity. Most UPR buyers adopt strict just‑in‑time procurement patterns and avoid building large inventories.
For the BDO segment, product prices climbed during August; nevertheless, MA‑route BDO producers maintained low plant operating rates and generated only rigid minimum demand. Other consuming fields such as coatings and chemical auxiliaries kept stable consumption without any noticeable incremental growth.
Cost and Profitability: Steam Credits Support Margins Amid High n‑Butane Costs
n‑Butane, the dominant feedstock for modern maleic anhydride production, saw sharp price inflation in early 2026 driven by geopolitical risks, jumping 25.35% quarter‑on‑quarter and 12.16% year‑on‑year. Prices later stabilised within the RMB 6,300‑6,700/ton range by late April.
Profitability differs significantly between production routes and accounting methods:
1. Butane‑route (excluding steam credit): average loss of around RMB 1,340 per ton; profitability dropped roughly 64% year‑on‑year.
2. Butane‑route (including steam credit): margins turned slightly positive at about RMB 159 per ton. Profit recovery mainly comes from by‑product steam revenue rather than improved competitiveness of maleic anhydride itself.
3. Benzene‑route: average loss reached RMB 2,308 per ton, with losses widening by RMB 206/ton compared with one year earlier.
The whole maleic anhydride industry hovers close to breakeven status. Current profit relief heavily relies on steam by‑product benefits instead of fundamental supply‑demand improvements.
Regional Price Trends for August 2026
August 2026 witnessed consistent downward adjustments across major Chinese regional markets for solid and liquid maleic anhydride:
Date / Region | Solid MA (RMB/t) | Liquid MA (RMB/t) |
1 Aug (national average) | 8,600 | — |
31 Aug (national average) | 8,200 | — |
31 Aug (Shandong) | ~7,800 | ~7,100 |
26 Aug (Jiangsu) | 7,500‑7,700 | 7,300‑7,500 |
Three primary factors contributed to August’s price decline: resumption of spot sales from previously suspended manufacturers; restart of maintenance‑halted production units; and ongoing feeble downstream purchasing activity.
Export Performance: Export Growth Becomes a Bright Spot to Absorb Domestic Surplus
Strong export expansion stands out as one bright spot amid the gloomy domestic maleic anhydride market, helping digest domestic supply surpluses.
• H1 2026 total exports: around 168,896 tons, climbing 53.88% year‑on‑year
• April 2026: hit a new monthly export record of 34,263 tons
• May 2026 export price: USD 1,044 per ton
• Full‑year 2026 forecast: 300,000‑330,000 tons, representing 30‑40% year‑on‑year growth.
Major domestic maleic anhydride producers are giving priority to export contract orders over domestic spot trading. Even so, robust export volumes cannot fully offset the sharp contraction in local domestic consumption. If you intend to inquire about export specifications, packing solutions and delivery schedules, please visit our contact page to get in touch with our sales team.
Market Outlook: Short‑Term Hopes vs Cautious‑to‑Bearish Medium‑Term Sentiment
Short‑Term View (September 2026)
The traditional “Golden September” consumption season may bring marginal improvement to the maleic anhydride market.
Potential Upside Factors
UPR operating rates may bounce back after the summer off‑season; downstream terminal sectors including glass‑fibre composites and building materials may receive improved new orders; selective plant maintenance could tighten market supply and offer price support.
Downside Risks
Domestic overall demand may remain tepid; falling crude‑oil prices will continue creating downward pressure across the whole chemical product chain.
Medium‑Term Perspective: Cautious‑to‑Bearish
Multiple large‑scale maleic anhydride installations are scheduled to restart production, covering Northeast China manufacturers, Zhejiang Dafu, Yantai Wanhua, Binzhou Dayou and Hengli Petrochemical. Once these units resume full operations, industry operating rates will rise considerably, shifting market balance from relative supply tightness toward ample supply.
At the same time, easing geopolitical tensions across the Middle East may drive n‑butane feedstock prices lower. Declining raw‑material costs could further open room for maleic anhydride spot prices to slide. Moving forward, manufacturers will keep struggling around breakeven margins, constantly balancing loss control and price defence.
Summary
China’s maleic anhydride market in 2026 is trapped in a persistent dilemma of high production costs and insufficient domestic demand. Aggressive voluntary production cuts have temporarily stabilised spot prices and lifted comprehensive margins, which are largely subsidised by steam by‑product credits rather than real demand recovery.
Fundamental supply‑demand imbalance has not been resolved. Structural headwinds including overall industry overcapacity, route‑based operational divergence and depressed local downstream consumption remain major long‑term challenges. While fast‑growing export business provides valuable buffer capacity for domestic oversupply, the medium‑term market trajectory remains cautious‑to‑bearish as production capacity returns and feedstock cost support weakens.
Disclaimer: This market analysis is for industry reference only. It does not constitute formal sales quotation or investment advice. All actual transaction terms shall be confirmed directly with Achilles Chemical’s sales department.
