During the early week of November 2025, Methyl Ethyl Ketone (MEK) prices in Asia remained stable at a low level due to weak cost support from feedstock sec-butanol and limited downstream demand in in industries like architectural coatings and adhesives due to slowdown in the construction. Elevated factory inventories and sharply declining new orders reflect oversupply pressures in the MEK market.
In China, MEK prices showed weekly stability, but domestic conditions revealed signs of strain. New production capacities have recently entered the market, yet downstream demand grew slowly, resulting in a 1.77% price decline in October.
Factories maintained stable operating rates, and there were no major outages reported. However, high inventories weighed heavily on manufacturers, straining cash flow and undermining their confidence in price maintenance.
The weak market for feedstock sec-butanol continued to decline due to a supply-demand imbalance, further reducing MEK production costs. This has compounded the pressure on MEK pricing.
Logistical challenges persisted, particularly at Qingdao port, where congestion worsened. The average vessel waiting time reached 1.93 days, which slowed exports and contributed to inventory accumulation.
Downstream manufacturers displayed little enthusiasm for purchasing MEK, resulting in sluggish demand that hindered any significant price increases. The downturn in the end user construction sector led to low demand in the downstream coatings and adhesives.
In October 2025, construction activity contracted 49.1% from the previous month, reflecting a cautious approach in project execution driven by subdued demand. Overseas market demand also remained flat, limiting opportunities for MEK growth.
In South Korea, the MEK market mirrored the challenges faced by neighboring countries, showing little optimism for recovery. Downstream factories exhibited a reluctance to purchase, primarily attributed to the downturn in construction activities impacting industries like coatings and adhesives.
In South Korea, construction sector faced a slight decline in production amidst stagnant activity. Public sector projects slowed, while private sector operations shrank due to soaring costs that impacted profitability.
Construction companies grappled with rising financial burdens from interest rates and increased costs, complicating the pursuit of new projects. These uncertainties contributed to dwindling order volumes, with increased risks related to unsold inventory.
The situation in Japan also indicated a weak buying and selling atmosphere in the MEK market. Downstream industries favored purchasing on demand while showing minimal interest in new orders, leading to low operational rates.
The construction sector in Japan faced challenges related to a broader economic slowdown. Public investment declined, dragging down government spending and further affecting the construction landscape.
As per the ChemAnalyst data, MEK prices may decline in the coming weeks due to ample supply and cautious procurement in the adhesives sector. Low feedstock prices will add downward pressure, limiting market confidence and further complicating recovery efforts.
