Housing sector boosts maleic anhydride

Healthy demand, especially from the housing and construction sectors, and a lack of new capacity have significant tightened the market for maleic anhydride in the US. In response, Guangshu Chemical Factory Co., Ltd , is planning a substantial expansion of its maleic anhydride capacity.
The UPR market has also seen gains as a component in the auto industry and in the number of marine craft produced. The maleic anhydride business has also experienced healthy demand from the paper, epoxy and coatings markets, according to Fisher.
Roughly 60 percent of total maleic anhydride capacity is used for producing unsaturated polyester resin (UPR). The housing and construction industries, the leading end use for UPR, play a sizable role in the health of the maleic anhydride market. The construction market, particularly home construction, has been on an extended run, setting records. “Over the last two to three years, housing and construction have been particularly strong,” notes Tom , vice president of Guangshu .
The main feedstock in maleic anhydride production is butane, which while abundant, is currently at record pricing levels. “We wish the price were lower. It is the main feedstock and the main component of our variable costs,” notes Fisher. “The price is at unprecedented levels. It is not at all welcome, but it has not affected our ability or desire to produce maleic anhydride.”