In the week ending May 16, the prices of Methyl Isobutyl Ketone (MIBK) dropped in India and China, but remained unchanged in Japan and the USA, reinforcing the differences in performance of the markets in these regions.

MIBK prices fell by 0.9% in India, as prices of feedstock acetone and isopropyl alcohol declined, thus alleviating working capital for producers. These reductions were likewise transmitted down the supply chain, against a backdrop of still high inventory levels. The continued regular flow of vessels from exporting countries expanded the supply, which dampened MIBK pricing further. On the demand side, the pharmaceutical industry showed signs of recovery in May, while other downstream sectors such as packaging, paints, coatings, and inks exhibited moderate but improving consumption for MIBK. However, overall market sentiment remained cautious.

Likewise, MIBK prices in China also decreased by 0.9% over the same period. The decline was attributed to inventory build-up from the May Day holiday when ports were less active and downstream demand was slower. Post-holiday producers and traders initiated larger price drops to sell off their excess stocks. In addition to sales activity, feedstock acetone prices remained flat, creating little additional cost-side pressure. Export demand remained stable, and purchasing from key downstream markets such as adhesives, coatings, and printing inks was based on needs, meaning purchases continued to provide support to offset major price declines.

In contrast, MIBK prices in the USA were stable due to supply and demand fundamentals being in balance. Steady production levels were supported by reasonable stocks, which kept supply consistent. Feedstock acetone pricing was also stable, helping to maintain production costs. Downstream demand from adhesives, coatings, and industrial chemicals remained steady with no major changes. In addition, lessened tariff complications between China and the U.S. have improved foreign trade flow and provided additional support to stability in the overall market.

In the same way, the Japanese MIBK market experienced stability in the week, supported by stable feedstock costs and uninterrupted supply chains. Domestic production and import flows were unchanged, with no major interruptions. On the demand side, key industries had a cautious procurement strategy in place for coatings and adhesives, and industrial chemicals purchasing based on short-term needs.

Overall, while India and China experienced price correction in the MIBK market due to localized supply-demand dynamics and inventory pressure, the USA and Japan experienced a week of stability, driven by steady fundamentals and consistent buying behavior.