In December 2025, Methyl Ethyl Ketone (MEK) prices in the USA declined by 2% due to high inventory levels and low demand within the domestic market. Additionally, the festive holiday season further halted market activities, leaving many MEK downstream buyers absent in late December.
The US’s MEK market largely relies on imports from regions such as Asia, Europe, and South Africa. Japan and Taiwan are the primary suppliers of MEK in Asia, while China's MEK exports saw a complete drop following the imposition of heavy tariffs on Chinese goods by Trump in early 2025.
The high freight rate from Asia to the USA also contributed to a reduced import demand. By the end of December, freight rates from Asia to the West Coast of North America continued to rise compared to the previous week. US buyers are waiting for the reduction in these rates.
MEK supply levels from Asia remained stable, with no significant port congestion reported at the Osaka and other Asian ports. Most MEK production facilities in Asia are operating smoothly, with no major plant shutdowns noted and sufficient availability of the feedstock sec-butanol.
MEK demand in the major exporting countries in Asia, like Japan remained low due to a slowdown in the construction sector. Downstream buyers are not purchasing in bulk, and many manufacturers are focused on destocking as the year concludes. This destocking process, combined with high supply from Asia, is further depressing market sentiment, forcing manufacturers to lower prices, which is reflected in the CFR prices in the USA. Inventory levels in the US market remain elevated.
Domestic demand for MEK in the USA has remained weak, demonstrating both seasonal slowdowns and ongoing structural issues in construction-related consumption. Producers of architectural and industrial coatings—the largest downstream consumers—have decreased their bulk orders as construction activity has slowed in colder regions.
The construction sector in the U.S. has faced month-over-month pressure, with the commercial, industrial, and residential segments all experiencing a slowdown in project execution. Market sources indicate that the U.S. construction sector saw a decline of 2.7% in 2025, driven by increased input costs, trade policy uncertainty, and negative builder sentiments.
Rising costs for inputs such as steel and lumber are squeezing profit margins. For the 20th consecutive month, builder sentiment regarding new single-family homes has remained pessimistic. Builders have noted that persistent challenges and rising housing inventories are further affecting market sentiment, with nearly two-thirds of them offering incentives to boost demand.
According to ChemAnalyst data, MEK prices in the USA are expected to rise due to restocking following the year-end and festival season, which is anticipated to enhance short-term buying sentiment. Furthermore, the upcoming lunar year in parts of Asia may prompt US buyers to ramp up their purchasing activities in anticipation of the market closures during that time.
