During early October 2025, Methyl Ethyl Ketone (MEK) prices remained low, driven by weak demand and ample supply across Asia.
In China, MEK supply stayed strong, but the National Day holidays from October 1 to 8 disrupted market activity, reducing shipment volumes. This led to higher stockpiles at factories and port terminals. Producers faced challenges managing excess inventories as buyer purchases slowed during the holiday. However plant utilization rates rising to about 60%during the late September, demand remained too weak to clear the surplus output.
Feedstock sec-butanol prices remained depressed due to abundant availability combined with the recommencement of the shutdown production plants, decreased the production expense of MEK.
Port congestion added to the woes, primarily due to adverse weather conditions and the Golden Week, intensifying delays in exports. Average waiting times at Qingdao ports reached 2.01 days, with some carriers facing extended delays of up to three days. This bottleneck not only hampered exports but also compounded inventory pressures domestically.
Demand for MEK in the downstream industries such as architectural coatings and adhesives remained low and minimal enthusiasm for purchases. Buyers limited their activities largely to immediate necessities, resulting in a stagnant buying landscape. The favorable trends in the construction sector were insufficient to bolster MEK prices, as high inventories and declining exports dominated market behavior.
The Japanese MEK market also faced ineffective demand. The Asian holiday period ceased the procurement and restricted market activities. Due to the lackluster performance of the construction industry, several buyers had taken a relatively conservatively stance, resulting in light trading activities.
The construction industry in Japan is being severely affected by costly construction materials and labor shortages attributed to the problem of a shrinking population. With the overall cost of construction increasing considerably by 25% - 29%, the average procurement period has also increased. As a result of this trend, the MEK market has been adversely affected; in recent months, Japan's exports are declining owing to mounting pressure of domestic supply.
India's MEK market faced challenges due to consistent high imports from China and low intra-Asia freight rates in late September, which reduced import costs. Monsoon-related disruptions last month hindered activity in downstream sectors like architectural coatings and adhesives. However, the implementation of GST 2.0 on September 22, which lowered taxes on construction materials, boosted affordable housing. By mid-September, post-monsoon recovery signs emerged, though buyers stayed cautious, limiting purchases to immediate needs.
Outlook
As per the Chemanalyst data, MEK prices suggests a potential further decline in the coming months. Ample supply persists as procurement remains cautious, particularly in the adhesives sector.
