Throughout the second half of July 2025, Methyl Isobutyl Ketone (MIBK) prices in India showed fluctuating trends in part due to changing warehouse stocks, as well as changing supply-demand dynamics and variable replacement costs.
The week ending July 25 saw MIBK prices fall by 1.9%, influenced by high warehouse stocks held by many importers and traders, sluggish demand from major consuming sectors, and declining replacement values. However, for the week ending August 1, prices recovered slightly, increasing 1.0% as supply tightness and logistical issues began to appear.
The initial decline in MIBK price came from aggressive destocking by importers and traders seeking to liquidate inventory amid continued bearish sentiment in the market. The price settling in MIBK was further depressed by a reduction in feedstock acetone prices, replacement imports at cheaper prices, and continued weak demand from paints, coatings, and packaging sectors. Rubber manufacturers, in particular, anticipated further price corrections given the sluggish pace of production.
Market sources reported that a decline in upstream crude oil and natural gas prices continued to weigh on the sentiment and buyers in the packaging and ink sectors, especially, were prudently delaying purchases until even lower prices. According to estimates, India's monthly consumption of MIBK, at 4.1-4.25 kilotons, is 100% import-led, but Deepak Phenolics is set to launch commercial production of 1.2 tons of MIBK by Q3 of 2025, potentially impacting domestic supply.
While demand remained debatably subdued for MIBK, certain consumer areas were beginning to show early signs of demand improvement, aiding what was otherwise a very stressful market; rubber chemicals and bulk drug intermediates emerged as examples of sectors potentially improving. Decorative paint manufacturers were, however, adequately covered with inventory for 4-6 weeks, which limited spot purchasing activity in the current monsoon lull.
The pre-Diwali demand from decorative paint manufacturers was beginning to show seasonal strength, with many manufacturers and plants operating at above-average utilization. Port logistics also tightened with turnaround times lengthening from an average of three hours to upward of twelve to eighteen hours. In addition, the availability of trucks and MIBK cargoes decreased by 15–20% per vessel at Nhava Sheva port, limiting supply in the short term and resulting in a modest end-of-month price recovery. Lastly, as the rupee fluctuated, the volatility added costs to imports, putting pressure on price movements.
As per ChemAnalyst, MIBK prices in India are expected to fluctuate within a narrow range. While inventories and import tariffs remain stable, higher logistics costs and the depreciation of the rupee may restrict traders' ability to lower prices, especially as they anticipate pre-Diwali demand and increased port-side activities.
