For the Quarter Ending June 2024
North America
In Q2 2024, the Methyl Ethyl Ketone (MEK) market in North America experienced a pronounced upward trajectory in prices, primarily driven by several converging factors. A notable surge in upstream crude oil prices, influenced by geopolitical tensions and supply disruptions, significantly elevated MEK production costs. Concurrently, a robust demand from the downstream paint and coating industries, particularly within the construction and automotive sectors, compounded the upward pressure on prices.
Seasonal procurement behaviors also played a critical role, with heightened activity observed as industries ramped up for summer operations. Inventory management strategies further contributed to the rising prices, as market participants anticipated continued demand growth, opting to secure supplies in advance.
Focusing on the USA, which witnessed the most substantial price shifts, the MEK market mirrored global trends but with amplified effects. A striking 5.1% increase from the same quarter last year underscored a persistent bullish sentiment, driven by steady economic recovery and infrastructural investments. However, contrasted against the previous quarter in 2024, there was a 7% decrease, indicative of periodic market corrections amidst the broader upward trend. Ultimately, the quarter concluded with MEK prices at USD 1451/MT CFR Texas, reflecting the complex interplay of driving forces.
APAC
In Q2 2024, the Methyl Ethyl Ketone (MEK) market in the APAC region faced a tumultuous period marked by notable price fluctuations. This quarter was heavily influenced by several key factors, including supply-demand imbalances, feedstock cost dynamics, and geopolitical tensions. The supply chain disruptions, driven by maintenance shutdowns and adverse weather conditions, significantly tightened the market. Concurrently, heightened procurement activities, coupled with escalating crude oil prices, further exacerbated production costs, applying additional upward pressure on MEK prices. Despite these adversities, downstream demand from sectors such as construction and automotive industries remained consistent, providing a semblance of stability to the market. Focusing on Japan, the region experienced the most pronounced price volatility due to these aggregated factors. The overall trend in Japan exhibited a bearish sentiment, exacerbated by subdued demand and reduced manufacturing output. Seasonality played a pivotal role, with lower-than-anticipated activity in the construction sector during the hotter months. The pricing environment for MEK in Japan reflected a stark 12.3% decline compared to the same quarter last year. Additionally, prices witnessed a 17.3% drop from the previous quarter of 2024, reflecting ongoing market softness. Overall, the pricing environment for MEK in the APAC region during Q2 2024 has been predominantly negative, driven by a confluence of supply chain disruptions and subdued demand, despite consistent downstream consumption. Finally, the quarter-ending price for methyl ethyl ketone in Japan was recorded at USD 1003/MT FOB Osaka.
Europe
In Q2 2024, the Methyl Ethyl Ketone (MEK) market in Europe experienced a distinctly negative pricing environment, with numerous factors contributing to a notable decrease in market prices. The primary influencers of this downturn included reduced costs of feedstock butanol and energy prices, which exerted substantial downward pressure on MEK prices. Normalization of supply conditions, post the lifting of force majeure by a major manufacturer on oxo-alcohols, led to a stability in supply in the market, further depressing prices. Weak demand from the downstream paint, coating and plasticizer industry coupled with sluggish procurement activities, as buyers anticipated further declines, exacerbated the bearish sentiment. The Netherlands observed significant price fluctuations within this quarter. The overall trend revealed a pronounced correlation between market supply dynamics and seasonal demand patterns, which typically improve in summer but remained suppressed this year. Comparing trends, the price of MEK in this quarter decreased by 6.1% from the previous quarter. Concluding the quarter, the price of MEK in the Netherlands stood at USD 1536/MT FD Rotterdam. This persistent decline throughout Q2 2024 indicates a predominantly negative pricing environment, influenced by oversupply, reduced feedstock costs, and weakened downstream demand.
For the Quarter Ending March 2024
North America
During Q1 2024, the pricing landscape for Methyl Ethyl Ketone (MEK) in North America region exhibited a diverse trend, marked by a mix of positive and negative sentiments. Various factors influenced prices across the region, leading to fluctuations in different directions. USA experienced notable price shifts during this period. One of the main drivers behind the price surge in January and February was the supply chain disruptions caused by various incidents globally. These disruptions, such as the drought in the Panama Canal and security concerns in the Red Sea, led to delays and higher shipping costs for MEK imports. Additionally, plant shutdowns globally further tightened supply, exacerbating the upward pressure on prices.
Additionally, heightened production costs in the exporting nations stemmed from increased upstream crude oil prices due to geopolitical tensions in the Middle East, alongside high freight costs. The elevated feedstock butanol prices further compounded production expenses during this period. However, MEK prices saw a decline in March due to due weaknesses in U.S. construction spending observed, as reported by the Commerce Department that led to low demand of MEK in paint and coating. Nevertheless, MEK prices in the USA witnessed a significant increase compared to the previous quarter, driven by supply chain disruptions and escalating tensions in the Middle East since October.
Finally, the quarter-ending price for methyl ethyl ketone in USA was recorded at USD 1510/MT CFR Texas, reflecting the mixed sentiments observed during the first quarter.
APAC
During Q1 2024, the pricing landscape for Methyl Ethyl Ketone (MEK) in APAC exhibited a diverse trend, marked by a mix of positive and negative sentiments. Various factors influenced prices across the region, leading to fluctuations in different directions. Japan experienced notable price shifts during this period.
One of the main drivers behind the price surge in January and February was the moderate demand for MEK in the downstream paint and coating industries, fueled by growth in the automobile sector. Additionally, the high production costs resulted from increased upstream crude oil prices due to geopolitical tensions in the Middle East contributed to this increase. Furthermore, the elevated feedstock butanol prices further escalated production costs during January and February. Active procurement and positive market sentiments bolstered prices, with stocking before the lunar year providing additional support. However, MEK prices experienced a decline in March due to reduced demand observed in the construction sector, coupled with weakened feedstock prices during that month. Nevertheless, MEK prices in Japan saw a significant decrease of 18% compared to the same quarter last year and recorded a 13% decrease from the previous quarter in 2024.
Finally, the quarter-ending price for Methyl ethyl ketone in Japan was recorded at USD 1097/MT FOB Osaka, reflecting the mixed sentiments observed during the first quarter.
Europe
During Q1 2024, the pricing landscape for Methyl Ethyl Ketone (MEK) in European region exhibited a diverse trend, marked by a mix of positive and negative sentiments. Various factors influenced prices across the region, leading to fluctuations in different directions. Netherlands experienced notable price shifts during this period.
One of the main drivers behind the price surge in January and February was the moderate demand for MEK in the downstream paint and coating industries, fueled by growth in the automobile sector and construction sector in Netherlands. Additionally, heightened production costs stemmed from increased upstream crude oil prices due to geopolitical tensions in the Middle East, alongside high freight costs. The elevated feedstock butanol prices further compounded production expenses during this period. Active procurement activities in the housing market fueled demand for MEK in the downstream sectors, while temporary shutdowns of MEK units globally during the lunar year added upward pressure on prices. However, MEK prices saw a decline in March due to reduced demand in construction and weakened feedstock prices. Nevertheless, MEK prices in the Netherlands witnessed a significant increase compared to the previous quarter, driven by supply chain disruptions and escalating tensions in the Middle East since October.
Finally, the quarter-ending price for methyl ethyl ketone in Netherland was recorded at USD 1720/MT FD Rotterdam, reflecting the mixed sentiments observed during the first quarter.
For the Quarter Ending December 2023
North America
In Q4FY23, Methyl Ethyl Ketone (MEK) prices in the USA market exhibited a positive trend throughout the final quarter. The first month remained relatively stable, supported by steady feedstock butanol prices and sufficient stockpile availability to meet demand. However, as the quarter progressed, MEK prices saw an increase in the last two months. This upward trajectory was primarily fueled by a surge in demand from the downstream paint and coating industries in the construction sector.
Additionally, elevated freight charges played a role in propelling prices higher. The disruptions caused by attacks in the Red Sea led shipping companies to increase the prices for container transportation from Asia to the USA, reflecting the impact of geopolitical events on market dynamics. This increase aimed to cover the additional costs associated with navigating around Africa.
Furthermore, shipowners still utilizing the Red Sea, predominantly tanker owners, faced escalating insurance premiums. Simultaneously, the drought in the Panama Canal contributed to shipping delays, further adding to the upward pressure on shipping rates. As of December, MEK prices in the USA were assessed at USD 1,344 per MT, CFR Texas, underscoring the intricate interplay of demand dynamics, geopolitical disruptions, and logistical challenges influencing MEK prices in the USA during the quarter.
APAC
In Q4FY23, Prices of Methyl Ethyl Ketone observed mixed sentiment in the APAC region. The initial month of the quarter witnessed a rise in MEK prices in Japan, driven by substantial inquiries. The demand from downstream paints and coatings was robust, leading to low inventory levels. However, cost support from butanol remained soft. As the quarter progressed, MEK prices experienced a decline in the last two months, primarily attributed to decreasing demand from downstream paint and coating industries. Several factors contributed to this decline, including reduced sales volumes across regions due to slowing construction activity and diminished demand in coatings, adhesives, fuel and lubes, and other industrial markets. The demand landscape faced challenges, with consumer inquiries from downstream paints, coatings, and solvents manufacturing industries remaining low. Additionally, the upstream butanol market exhibited sluggishness, further exacerbated by the ongoing bearish trend in crude oil prices. These factors collectively impacted the cost support for MEK production. As of December, MEK prices in Japan were assessed at USD 1125/MT FOB Osaka.
Europe
In Q4FY23, Prices of Methyl Ethyl Ketone observed mixed sentiment in the European region. The initial month of the quarter saw a decline in MEK prices in the Netherlands, attributed to low demand in the construction sector and weak cost support from the feedstock butanol. The demand from downstream paints and coatings remained subdued in the construction sector, contributing to high inventory levels. As the quarter unfolded, MEK prices experienced an increase in the last two months. This upswing was primarily driven by a surge in demand from the downstream paint and coating industries in the automobile sector. Additionally, elevated freight charges played a role in pushing prices higher. The attacks in the Red Sea disrupted shipping routes, leading shipping companies to triple the prices for container transportation from Asia to Europe. This increase aimed to cover the additional costs associated with navigating around Africa. Moreover, shipowners still utilizing the Red Sea, mainly tanker owners, faced escalating insurance premiums. Concurrently, the drought in the Panama Canal caused delays in shipping from the Atlantic to the Pacific Ocean, further contributing to higher shipping rates. As of December, MEK prices in the Netherlands were assessed at USD 590/MT FD Rotterdam, showcasing the intricate interplay of market dynamics, geopolitical events, and transportation challenges influencing MEK prices during this quarter.
For the Quarter Ending September 2023
North America
In the USA market, the third quarter of 2023 witnessed a continued decline in Methyl Ethyl Ketone (MEK) prices, driven by several key factors. Notably, limited procurement activities, stability in demand dynamics, and weak consumption offtake from downstream paints and coatings industries contributed to this price trend. The deceleration of procurement activities in the US market was a significant factor affecting MEK prices. This slowdown in procurement was also reflected in the pricing trends. However, despite this slowdown, the continuous rise in cost pressure from upstream sources and ample queries from downstream end-use industries acted as counterbalancing factors, resulting in the maintenance of firm prices for MEK in the US market. Additionally, the inflow of costly imports from the Asian region further impacted the market dynamics. The pricing stability in the Asian region, particularly in the several weeks leading up to September 22, 2023, influenced the import prices in the Western market. As a result, the prices of Methyl Ethyl Ketone remained unchanged, with assessments indicating a price of USD 1180 per MT CFR Texas. The influx of cheaper imports into the US domestic market contributed to the significant fall in MEK prices, further amplified by the sluggish price trend in the Asia Pacific region. Steady imports from neighboring countries such as China, South Korea, and Japan, coupled with declining prices in these countries, eased the import prices in the US market. Demand from downstream coatings and adhesives experienced stagnancy with limited new queries in the final two weeks of the quarter, and procurement activities remained largely stable, reflecting a wait-and-see sentiment in the domestic market.
APAC
The third quarter of 2023 brought about mixed sentiments in Methyl Ethyl Ketone (MEK) prices in the ASAP region. MEK prices exhibited a decline during the first month of the quarter, followed by an increase in the subsequent two months. The initial decline in MEK prices in the Japanese market during the first month of the third quarter can be attributed to weak demand dynamics, both domestically and internationally. Furthermore, cost support from upstream Butanol remained soft. The construction and electronics industries experienced a significant decline, and demand from downstream coating and adhesives industries stagnated, with limited new queries. However, a transformation occurred in the latter part of the quarter. Demand for downstream paints and coatings surged, and procurement activities were active, resulting in a considerable number of queries from market participants. Inventory levels decreased as queries remained proactive from downstream buyers. The recent production cuts announced by Saudi Arabia and Russia played a crucial role in supporting oil prices, extending their ongoing production and export cuts through the end of the year. This, in turn, solidified prices for upstream Benzene and subsequently contributed to an escalation in the production cost of feedstock Acetone and consequent cost support for MEK in the Japanese market. As of August 2023, Methyl Ethyl Ketone prices were assessed at USD 1214 per MT on a FOB Busan basis, marking the culmination of these market dynamics in the ASAP region.
Europe
In the European market, the third quarter of 2023 saw a continued decline in Methyl Ethyl Ketone (MEK) prices, driven by several key factors. Cheap imports from the Asian market, depressed demand dynamics, and limited cost support from upstream sources all contributed to this decline. One significant factor in the sharp decline of MEK prices was weak consumption offtakes from downstream paints and coatings industries. The disparity between contract and spot prices had a considerable impact on chemical producers in Europe, and this, coupled with persistent weak demand and international competition, continued to put pressure on operating rates. Domestically, production rates remained optimal, leading to abundant inventory levels both in the domestic market and at ports. The upstream Butanol market remained stable, particularly as Brent crude oil prices improved in the first week of July 2023. Consistent imports from the Asia Pacific region further influenced the market dynamics. However, demand from downstream solvent and Bisphenol A industries stagnated, with limited new queries and weak procurement activities. Additionally, soft cost support resulted from decreasing feedstock Acetone prices. The underwhelming performance of the construction industry, as highlighted in Dow Chemicals' quarterly report ending June 2023, added to the challenging market conditions. By August 2023, Methyl Ethyl Ketone prices were assessed at USD 1076 per MT FD Rotterdam, reflecting the culmination of these market dynamics in the European region.
For the Quarter Ending June 2023
North America
In Q2 2023, the USA market for Methyl Ethyl Ketone (MEK) witnessed a bearish trend with prices declining consistently. The weak demand dynamics in both domestic and international markets contributed to the downward trajectory of MEK prices. Cheap imports from the APAC region further softened the pricing dynamics, reflecting the market sentiment in the Asian market. The supply situation remained moderate, with ample inventories in the market, but the imports from Asian Pacific countries provided a cheaper alternative, putting pressure on prices. Meanwhile, the stagnant performance of the construction industry led to weak consumption rates of key petrochemicals. After the conclusion of Q2 2023, Methyl Ethyl Ketone prices in the US were assessed at USD 1950 per MT on CFR basis.
APAC
In Q2 2023, the Chinese market for Methyl Ethyl Ketone (MEK) witnessed a bearish trend with prices continuing their downward trajectory during the first and second weeks of June. The decline in prices can be attributed to weak demand dynamics both domestically and internationally. Demand from downstream industries, particularly paints and coatings, showed some improvement, but the ample supply availability in the market offset the optimistic change in prices. The supply situation remained moderate, with domestic production operating at optimum rates, resulting in abundant inventory levels in both the domestic market and at ports. Additionally, the upstream Butanol market remained sluggish, with crude oil prices sustaining their bearish trend, which contributed to soft cost support for MEK production. Demand from downstream industries like paints & coatings remained stable, but the consumption rates of key petrochemicals were weak due to the stagnant performance of the construction industry. The demand dynamics are expected to remain stable in the coming weeks. The fluctuation in prices of MEK was largely influenced by its raw material, 2-Butanol, which experienced significant price declines after reaching peak levels. As a result, the cost support for MEK production weakened, impacting the overall pricing of the product. The downstream demand for MEK remained moderate, characterized by limited new orders and sluggish supply-demand interaction. After the conclusion of Q2 2023, Methyl Ethyl Ketone prices in Japan were assessed at USD 1710 per MT on an FOB basis.
Europe
In Q2 2023, the European market for Methyl Ethyl Ketone (MEK) experienced a bearish trend with prices declining due to weak demand sentiment and underwhelming performance in the construction industry. The relief in energy prices did not have a significant impact on the market as the firm inflation rates and rise in interest rates affected the demand fundamentals negatively. The European MEK market faced tough competition from the Asian market, where imports were cheaper, adding further pressure on businesses in the region. Downstream demand from the paints and coatings industry remained soft, leading to decreasing consumption rates. Imports from the Asian Pacific market also contributed to softening pricing dynamics. The market situation remained bearish, with moderate supply and limited change in demand dynamics from downstream industries. The stabilization phase, followed by a rise in consumption from the downstream market, contributed to the scarcity of stocks and price normalization. However, the prevailing weak demand and insufficient procurement support resulted in low demand for MEK in the region. In June 2023, Methyl Ethyl Ketone prices in Europe were assessed at USD 1815 per MT on FD basis.
For the Quarter Ending March 2023
North America
MEK prices moved in a downward see-saw trend during Q1,2023 in America, with prices ranging at USD 1545/ton CFR Texas. Investors were pessimistic in the US Logistic Industry, indicating that their anticipated growth rates were lower than they have historically. The production cost was also deteriorating, impacting the petrochemical prices in the regional market. There was a decrease in demand for MEK, due to which the prices of the product fell in the region. Decreasing growth of the product was caused by a moderate supply of the product in the regional market and steady production costs, with a shift in these factors and steady consumer confidence in the procurement of the products from the traders and the merchants. Relatively controllable inventory at the supply side of the product maintained a moderate stock of the finished product of MEK as well.
Asia
The prices of MEK fluctuated in China in a downward loop during Q1, 2023, with prices ranging from USD 1260/ton FOB Qingdao. The petrochemical demand was depleted from South Korea, Indonesia, Vietnam, and India, resulting in higher inventory levels. An oversupply of MEK in the regional market and a higher stock level of 2-Butanol with the traders and the merchants impacted the price of the product, and also, it was received that the quotations of MEK de-escalated. Fluctuation in the price of Crude Oil impacted the downstream market as well.
Europe
The market value of MEK was de-escalated in the European market with costs ranging at USD 1848/ton FD Rotterdam in Germany during January in the first quarter of 2023. There was, although, a rise in the freight charges from North Europe to East Asia as sourced by the suppliers. Due to plummeting consumption from the downstream adhesives market, there was a rise in the inventory level of the product. With wider economic constraints in the regional market, the market value of MEK decreased, as per quoted by the traders. A drop in the procurement of MEK for the manufacturing of downstream construction materials in the region affected the prices of those materials. Feedstock 2-Butanol demand also declined, resulting in lower prices for other petrochemical derivatives.
For the Quarter Ending December 2022
North America
In addition, US prices have been weakening and continued to attract imports since demand in the Asian market remained sluggish while the freight charges plummeted. The USA Methyl Ethyl Ketone (MEK) market has been snug on reduced run rates and planned turnarounds, along with quieter demand and ample supply within the regional market. The weakening prices of Methyl Ethyl Ketone have been further worsened due to falling raw materials prices and limited demand pressure from the additives market, which resulted in ample material availability in the regional market affecting the market sentiments. The prices ranged at USD 1647/ton CFR Texas (USA) in the month of November as per ChemAnalyst Research Team Data.
Asia
The prices of Methyl Ethyl Ketone (MEK) plummeted in the Asian market during the fourth quarter of 2022, with costs ranging from USD 1348/ton FOB Qingdao (China) in October 2022, as per ChemAnalyst Research Team data. The demand from the downstream paints and coatings industry was stable to sluggish, which affected the market sentiments relieving the demand pressure from the prices of the product. The supply of Methyl Ethyl Ketone in the Asian market was high, with an increase in stockpiling of products. The majority of the more effective support in the MEK market comes from the reasonably manageable inventory on the supply side. MEK production cost decreased, and downstream demand remained weak. MEK prices slipped as recession concerns rise, with Covid -19 outbreaks in China sparking fears of the product demand outweighing supply worries. The drowning upstream Crude oil prices and the feedstock n-butene values have been another reason for the declining price trend of Methyl Ethyl Ketone prices.
Europe
MEK market moved down as domestic fundamentals were weak in Europe during the Q4 of 2022. Meanwhile, the polyester industry was heard to cut production owing to depressed market confidence. The crude oil prices went downwards, giving limited cost support. However, MEK market players held bearish sentiments as MEK margins remained negative. The demand for downstream paints, adhesives, and printing inks decreased in the regional market. Thus, declining values of upstream n-butene led to a decrease in Methyl Ethyl Ketone prices. The port congestion in Germany caused by the rerouting of ships from the UK affected the trade activities and weakened the purchase from the Netherlands. Additionally, a drop in the upstream Crude has been influencing the feedstock n-butene values, further resulting in the declining price trend of Methyl Ethyl Ketone. The Methyl Ethyl Ketone prices were hovering at USD 1867/ton FD Rotterdam (Netherlands) in December 2022.
For the Quarter Ending September 2022
North America
In the third quarter of 2022, the prices of Methyl Ethyl Ketone (MEK) have fluctuated in the US market. The prices fell and then escalated in the latter half of the third quarter. In September, Methyl Ethyl Ketone prices escalated in the USA due to the continuous fluctuation in energy prices. The demand for the product rose from the downstream sectors. Moreover, the tight product supply and the healthy purchasing from the domestic market further inflated the price of Methyl Ethyl Ketone. Consequently, Methyl Ethyl Ketone (MEK) CFR Texas prices averaged USD 1773 per ton at the end of the third quarter.
Asia Pacific
The prices of Methyl Ethyl Ketone have demonstrated mixed market sentiments in China's domestic market. In early Q3, the sinking upstream Crude prices and the feedstock n-butene values have been the major reason for the declining price trend of Methyl Ethyl Ketone prices. However, in September, the market values of Methyl Ethyl Ketone increased. The operating rates were low due to the shutdown of plants for maintenance. Hence, the tight product supply and the increased purchasing activities backed the Methyl Ethyl Ketone price rise. Also, the demand from the downstream market was based on spot procurement; hence, the cost of MEK settled at USD 1415/ MT FOB Qingdao.
Europe
The prices of Methyl Ethyl Ketone have retained their upward momentum throughout the third quarter of 2022. The MEK costs significantly escalated in the first half of the third quarter. The burgeoning energy costs have impacted the benchmark prices of MEK in the domestic region of the Netherlands. The limited availability of natural gas has resulted in production cuts across the European region. However, the port congestion in Germany caused by the rerouting of ships from the UK affected the trade activities and weakened the purchase from the Netherlands in the second half of the third quarter. Therefore, Methyl Ethyl Ketone FD Rotterdam concluded at USD 2484 per ton in Q3-end.
For the Quarter Ending June 2022
North America
In the second quarter of 2022, the price of the Methyl Ethyl Ketone market showcased a mixed sentiment. At the beginning of the quarter, the limited supply of raw materials after continuous sanctions on Russian imports inflated the Methyl Ethyl Ketone pricing. The increasing demand from the regional and domestic markets was another reason for the Methyl Ethyl Ketone price hike. Further, during the mid and end of the second quarter, the commodity's price fell gradually in the domestic market due to the reduction in the raw material values. High inventories in the previous months and the low demand from the end-use automotive, textile, and chemical sectors caused the Methyl Ethyl Ketone price to drop.
APAC
Methyl Ethyl Ketone prices dropped during the second quarter of 2022 in India. The MEK values fell due to increased import activity and poor domestic consumer sentiment. Thus, the high importation of MEK resulted in the product's wide availability. Moreover, the sinking Methyl Ethyl Ketone price trend was supported by the weak demand from makers of downstream products such as paints, rubber, coatings, and adhesives. Despite the rising upstream crude prices, the MEK market dropped continuously owing to the weak demand and ample product availability provoking the stockholders to negotiate with the existing product. As a result, the price of Methyl Ethyl Ketone settled at USD 1946/ tonne CFR JNPT in the quarter ending June 2022.
Europe
The European region witnessed a fluctuation in the Cumene price trend. Initially, the upstream crude prices increased significantly due to inflation and also a tight supply of the products. The sanctions on Russian imports have also added fuel to the previously mentioned reasons. Later, the prices started dropping as a result of narrowed demand from the paint & coating, automotive and textile sectors. Moreover, during the quarter ending June 2022, the fear of recession triggered by the US interest rate hikes resulted in the downtrend of the commodity's values. In addition, the price quoted by the manufacturers were also low, ushering in the downfall of the Methyl Ethyl Ketone market.
For the Quarter Ending March 2022
North America
Methyl Ethyl Ketone prices observed an upward trend in North America during the first quarter of 2022. Rise in upstream crude in the aftermath of Russia's invasion on Ukraine turned out as a primary factor behind the prise rise. Since the US imports MEK from Europe, the geopolitical tension has caused the disruption in trade and delay in supplies, which had led to the rise in MEK prices. Substantial rise in the demand for paints from the construction and automotive industries has also positively impacted the MEK market trend in Q1. MEK prices witnessed a rise by nearly USD 200-300/MT in Q1 2022. In addition, US sanctions on Russian oil and gas led to an energy crisis, further influencing the MEK market.
Asia Pacific
During the first quarter of 2022, Methyl Ethyl Ketone (MEK) prices showcased a mixed sentiment. In February, the price dropped due to dull market sentiments amidst the Lunar holidays. The cost of MEK in India settled at USD 1791 per MT CFR JNPT by the end of February. Later in March, the MEK market rose due to the soaring upstream crude prices because of the disruption caused by geopolitical tension. In addition, the rise in the demand for solvents from paints & coating industry further led to the inclination in MEK values by around 16.9%.
Europe
In Europe, MEK prices showcased an upward trajectory during the first quarter of 2022, supported by the favourable buying momentum in the regional market. Further, Russia's invasion of Ukraine resulted in upstream crude and feedstock price hike, which positively impacted the MEK market. Besides, the growing construction industry and rapid urbanization increased the demand for downstream paints & coatings, impacting the price of MEK. In March, the cost of MEK in the Netherlands surged to USD 2670 per MT FD Rotterdam.
For the Quarter Ending December 2021
North America
In North America, Methyl Ethyl Ketone (MEK) market showcased mixed sentiments during the third quarter of 2021. At the beginning of the quarter, MEK prices rose due to limited availability of the material amid its substantial demand. In November, normalcy in the operating rates of industry eased the supply situation which directly impacted its prices. In the US, MEK prices witnessed significant ease in December due to the drop in raw material prices as well as seasonal slowdown in consumption. Consistent ease in freight rates throughout Q4 also assisted in taking down MEK prices in North America. FOB MEK prices in the USA were assessed at USD 1470 per MT in December.
Asia Pacific
In Q4, the market outlook of MEK in Asia remained mixed due to fluctuation in demand pattern. In October, MEK prices in the regional market skyrocketed due to several combined factors including limited production in China and high demand due to the festive season in India. Traders ran out of stocks, as imports got expensive week over week in the regional market. However, post festive season, peaked prices reached normalcy across Indian market, as stock availability gradually improved. Traders revealed that, improved imports from China levelled up their inventories level, that opportune them to ease their product cost. Methyl Ethyl Ketone (MEK) prices continued to throughout December as the demand for solvents in paint and coating industry went down due to the seasonal factor. Amidst the ample availability of MEK and slow buying momentum, CFR MEK prices for India dropped down to USD 1715 per MT in the month of December.
Europe
In Europe, MEK market experienced marginal uptrend in early Q4 due to unprecedented rise in energy values. MEK prices surged in the beginning of the quarter backed by limited supplies from the overseas amidst favourable buying momentum. In December, MEK prices observed a significant drop following the decline in seasonal demand from the paints and coatings industry. Ease in freight rates also assisted in pulling down MEK prices in Europe. MEK FD prices averaged at USD 1470 per MT in December.
For the Quarter Ending September 2021
North America
In North America, the Methyl Ethyl Ketone (MEK) market witnessed an upward rally as its demand remained strong throughout the third quarter owing to a steadily recovering economy. The demand from the paints & coatings, textiles and plastics industries remained the key drivers. However, the supply was constrained due to soaring prices of catalyst (Cu/Zn) during this timeframe. Ahead of the hurricane season the prices of MEK witnessed a slight dip as suppliers looked to avoid increased costs of transportation by offloading their stocks at a discount. But in the latter part of the quarter The prices recovered during the post hurricane season and will likely follow the trend going into the 4th quarter.
Asia Pacific
In Asia, the prices of MEK experienced an exponential rise owing to the robust demand from the downstream sectors after the resurgence in the industrial and economical activities. In addition, the spiraling price of feedstock Butanol also contributed to the inflation in the values of MEK in the region. In India, Methyl Ethyl Ketone (MEK) price rally kept its upward momentum backed by delayed imports from China due to the congestion on several ports and shortage of shipping containers. Moreover, a firm demand pattern from the domestic market was seen throughout the quarter. In addition, some domestic manufacturers had submitted application suggesting antidumping duty on imports of MEK from China, which might be another reason behind this steep rise. However, Indian authorities did not take any further step regarding the same, but the price escalation continued during this timeframe. Hence, Methyl Ethyl Ketone (MEK) CFR Jnpt prices accessed at USD 1617.99 per MT in September showcased a significant hike since July.
Europe
In the European region, the Methyl Ethyl Ketone market traced an exponential rise in its demand from Paint and Coatings sector with the revival in industrial and market activities during the third quarter of 2021. Hinderance in the imports from the US due to the arrival of Ida hurricane that made landfall in the gulf coast of US on 29th August led to scarcity of the product and consequently led to the rise in the MEK prices. Moreover, high freight charges further sent ripples to the values of MEK in this quarter.
For the Quarter Ending June 2021
North America
Offtakes of Methyl Ethyl Ketone (MEK) from the paints and coating industries witnessed a seasonal hike to cope up with the improved enquiries from the building and construction sector. Whereas the supply outlook observed a drastic change in the North American region owing to restoration of the industrial infrastructure at several major producers. Transportation and logistic delays continued to impact the regional availability despite an increase in the supplies from Asia and Europe. The pricing trend in the North American market stabilized in the second quarter after reporting strong gains amidst easiness supplies with FOB Texas discussion settled at USD 2140 per tonne in June.
Asia Pacific
Methyl Ethyl Ketone supplies in the Asia pacific region improved during the second quarter of 2021, however the demand outlook in the South Asian region was subdued due to the impact of second COVID wave in India. Hence, enquiries from the Indian buyers were limited in the first half of the quarter. Although, situation improved as the vaccination programmes picked up pace in India, the demand recovered proportionally. The pricing trend in India witnessed mixed results with FOB Mumbai discussions assessed at USD 1440 per tonne in June. Whereas the overall MEK market outlook in China remained balanced as the offtakes were consistent from the paints industries to fulfil the enquiries from the construction, automotive and renovation sector.
Europe
During the second quarter of 2021, the Methyl Ethyl Ketone market in the European region eased proportionally with EU being the key exporter in the previous quarter to major importer in this quarter for the North American region. Furthermore, improved operating rates at several producing plants post winter season supported the market outlook in the European region. Demand witnessed the seasonal hike from the paints and coating industries as the construction activities picked up pace and the offtakes were consistent from the automotive and renovation sector.
For the Quarter Ending March 2021
North America
MEK supplies in the region were tight during the first quarter of 2021, due to the collapse of the industrial infrastructure as the several key feedstock plants shut their production in mid-February amid the extreme freeze weather conditions in the Texas and nearby Gulf region, creating global supply shortage. Demand took a leap after production hiccups ended in late March and consumption from the downstream construction and paint and coating sector surged. The FOB Texas prices witnessed a multifold surge in the first quarter showing an average hike of +USD 775/MT from January to USD 2085/MT for April deliveries.
Asia-Pacific
Asian MEK market was balanced during the first quarter of 2021, as the export segment took an uptrend due to supply shortages occurring in the western regions. However, some constraints were witnessed during the Chinese lunar new year holidays which led to the shortage of key feedstocks in the northeastern Asian region. After the holidays, the situation balanced out as MEK plants operated at maximum efficiencies. Demand was stable due to constant consumption from the downstream solvent sector. Prices in the southeastern region took a downtrend with CFR JNPT prices in India assessed at USD 850/MT in March. In China, FOB prices surged by +USD 60/MT during the quarter.
Europe
The European market was sluggish as the supplies were balanced to tight during the first quarter of 2021, owing to reduced imports from the USA amid bad weather conditions, followed by the regional transportation hinderance in the Amsterdam-Rotterdam-Antwerp route. However, situation balanced out as a producer in the region struggled to manage their inventory levels ahead of turnaround period in the next quarter. Demand improved in the region as the offtakes from the automotive and construction sector surged, with the significant growth seen in exports.
For the Quarter Ending September 2020
Asia
Several large-scale manufacturers of MEK maintained relatively low operating rates in July-September quarter against the backdrop of subdued domestic demand. Few of the manufacturers were heard adopting a wait and see approach in the second half of the quarter as majority of downstream industries were either shut or were running at reduced rates under the fears of demand uncertainty as a repercussion of coronavirus outbreak. In September, demand for MEK witnessed a marginal rebound in China as the government carried out several initiatives to uplift the sunken economy. However, it was not enough to sustain the market for a good amount of time and compelled China to again long for exports. In India, the revival of automotive industry by the end of September showcased much-needed hopes towards stability of MEK market in the near future. CFR prices for MEK in India were assessed around USD 1135 per MT, witnessing a decline by USD 25 per MT from the previous quarter.
Europe
Ample imports of MEK from Asia during Q3 of 2020 directed excess supply to the European market, leading to a sharp drag in its market fundamentals. Resumption in operations of the automotive industry did not provide the expected push to the MEK demand as the overall offtakes were still quite low as compared to pre-lockdown levels. In addition, feeble demand from paints and coatings applications due to limited construction activities further delayed the rebound of MEK market in Europe. However, consumption of MEK viably increased for furniture-related to adhesives in comparison to its other segments.
