Succinic anhydride

Succinic Anhydride: Recent Market Intelligence Report

I. Market Price Dynamics
- Base Price: According to Shengyishe (Business Society) data, the benchmark price of succinic anhydride on July 6, 2026, stood at RMB 21,100.00 per ton—unchanged from early July and at its annual low.
- Regional Quotations: On January 12, 2026, multiple enterprises in Shandong Province—including Liaocheng Jinxinda New Materials, Shandong Yihé Fine Chemical, and Shandong Jinshengrun Chemical—quoted uniformly at RMB 21,000.00 per ton, indicating regional price stability.

II. Supply-Demand Analysis
- Supply Side:
- Capacity Distribution: China is the world’s largest producer. In 2024, national capacity reached 210,000 tons/year, with output approximately 175,000 tons—resulting in a self-sufficiency rate exceeding 110% and a net export position.
- Technological Breakthroughs: Bio-based production processes have matured significantly; production costs declined from RMB 18,000/ton in 2015 to RMB 12,500/ton in 2024—approaching the cost level of petrochemical routes—and are accelerating the industry’s green transition.
- New Capacity Additions: By 2026, three domestic enterprises’ planned bio-based succinic anhydride projects—totaling 50,000 tons/year—will enter operation sequentially, further expanding supply capacity.
- Demand Side:
- Consumption Structure: Globally, unsaturated polyester resins account for 42% of consumption (driven by demand growth in wind turbine blades and automotive lightweighting); pharmaceutical intermediates represent 28% (with rising demand for high-purity intermediates); and bio-based biodegradable material poly(butylene succinate) (PBS) usage is growing rapidly—consumption for PBS production surged 35% year-on-year in 2024.
- Regional Disparities: Domestic consumption shows an ‘east-strong, west-weak’ pattern: the Yangtze River Delta and Pearl River Delta regions collectively account for over 60% of national consumption. Export destinations are primarily India, Southeast Asia, and the EU; the share of high-value-added products (pharmaceutical-grade and food-grade) has risen to 45%.

III. Key Industry Drivers
- Policy Support: China’s Ministry of Industry and Information Technology (MIIT) encourages the development of bio-based chemicals and technological upgrading. The National Development and Reform Commission’s (NDRC) “14th Five-Year Action Plan for Plastic Pollution Control” explicitly targets biodegradable plastic output of over 2 million tons by 2025—directly boosting PBS demand.
- Technological Advancement: Bio-fermentation methods have achieved glucose-to-succinic acid conversion rates of up to 95%, significantly lowering production costs and enhancing economic viability.
- Cost Pressures: Fluctuations in crude oil prices and the EU’s Carbon Border Adjustment Mechanism (CBAM) are increasing compliance costs for conventional petrochemical routes—accelerating the industry’s shift toward green, low-carbon production.

IV. Competitive Landscape
- Enterprise Tiering:
- First-Tier Players: Shandong Lanfan Chemical and Zhejiang Xinhua Chemical jointly command ~40% of the domestic market share. Both adopt diversified strategies, extending vertically into downstream resin and pharmaceutical applications.
- Second-Tier Players: Jiangsu Sanmu Group (specializing in high-purity pharmaceutical-grade products—achieving ~10 percentage points higher gross margin) and Anhui Shuguang Chemical (focusing on food additive markets) pursue differentiated, niche strategies to secure competitive advantages.
- Emerging Players: Companies such as Cathay Biotech and COFCO Biochemical are entering the bio-based succinic anhydride space, leveraging green and low-carbon attributes to expand into EU markets.
- Import-Export Trends: In 2024, export volume increased by 12% year-on-year; the share of high-value-added products rose correspondingly—reflecting enhanced international recognition and competitiveness.

V. Analysis & Outlook
1. Price Trend:
- Short-Term: Supported by balanced supply-demand fundamentals and cost floors, succinic anhydride prices are expected to remain stable, trading within the RMB 21,000–21,200/ton range.
- Long-Term: As bio-based capacity ramps up and economies of scale take effect, traditional petrochemical-route products may face downward pricing pressure; however, high-purity pharmaceutical-grade products—protected by technical barriers—will likely retain premium pricing power.

2. Demand Growth:
- PBS Segment: If all major global PBS producers’ announced capacity expansion plans are fully implemented, additional succinic anhydride demand of 120,000 tons/year will be generated by 2028—making it the core growth driver.
- Pharmaceutical Segment: Sustained growth in demand for high-quality intermediates will further elevate the share of pharmaceutical-grade products.

3. Industry Transformation:
- Green Transition: The price gap between bio-based and conventional succinic anhydride has narrowed to 25%; with scaling-up, bio-based products are gaining competitiveness. Bio-based capacity is projected to exceed 30% of total capacity by 2030.
- High-End Upgrading: Enterprises are upgrading technologies to achieve ultra-high purity (e.g., ≥99.9%), meeting stringent requirements of pharmaceutical and food sectors—and thereby expanding into high-margin, value-added markets.

4. Regional Development:
- Domestic: The East China region (Shandong, Jiangsu, Zhejiang) accounts for over 65% of national capacity, benefiting from port logistics infrastructure and favorable chemical park policies—creating strong industrial agglomeration effects. The ‘east-strong, west-weak’ consumption pattern is unlikely to change significantly in the near term.
- International: The Asia-Pacific region holds 58% of global capacity, with China alone contributing 32%. China’s export competitiveness is expected to strengthen further.