MALEIC ANHYDRIDE MARKET Challenges and Opportunities

This market has been facing significant challenges due to volatile crude oil and natural gas prices, which are the key raw materials used in the production of maleic anhydride. As these raw materials are commodities, their prices are constantly fluctuating depending on global supply-demand forces. When input costs increase, maleic anhydride producers find it difficult to pass on the entire cost hike to customers in the short run. This squeezes profits and compels producers to either operate at a loss or shut down plants temporarily. Moreover, disruptions at any point in the raw material supply chain further exacerbate price and supply instability issues. The ongoing Russia-Ukraine conflict has already led to a sharp rise in energy prices worldwide. If this volatility persists, it will adversely impact the bottom lines of maleic anhydride producers and render some production capacity unviable.