For the Quarter Ending March 2024
North America
In Q1 2024, the North American market for Methyl Isobutyl Ketone (MIBK) witnessed a significant decrease in prices when compared with the previous quarter. Several factors contributed to weak market trend. Firstly, there was a decline in overall demand for MIBK from downstream industries, particularly in the paint and coating sector.
Nevertheless, there was gradual growth in the price trend for MIBK but was not adequate to surpass the previous hike achieved during the last quarter. This weak demand resulted in a decrease in market prices. Additionally, the MIBK market was influenced by global factors such as the drop in Acetone prices, which further contributed to the decline in MIBK prices.
Within the North American market, the USA experienced the maximum price changes. The overall trend for MIBK prices in the USA was negative, with prices decreased throughout the quarter. The price change from the same quarter last year was -19%, reflecting a significant drop in prices compared to the previous year. The quarter-on-quarter change in prices for Q1 2024 was -2%, indicating a slight decrease in prices compared to the previous quarter. Furthermore, there was a notable price difference between the first and second half of the quarter, with prices decreasing by 11%. In March 2024, the price of MIBK in the USA was USD 1523/MT FOB Texas. This price reflects the overall negative sentiment in the pricing environment for MIBK in the USA during Q1 2024.
APAC
The first quarter of 2024 has been challenging for the Methyl Isobutyl Ketone (MIBK) market in the APAC region, with prices experiencing a significant decrease. Several factors have influenced market prices during this period. One of the key factors is the overall decrease in demand from downstream industries, especially the solvent industry, which has led to a decline in trading activities and weak market fundamentals. Additionally, high product inventories and limited market purchases have contributed to the downward trend in prices. China, in particular, has seen the maximum price changes in the MIBK market. The prices have been on a downward trajectory throughout the quarter, reflecting the sluggish demand and weak market fundamentals in the region. Compared to the same quarter last year, prices have decreased by 7%, indicating a negative trend in the market. Moreover, the prices have also declined by 11% from the previous quarter in 2024, further highlighting the decreasing sentiment. During March 2024, the price for MIBK in China stands at USD 2029/MT FOB-Qingdao. Overall, the pricing environment for MIBK in the APAC region during the first quarter of 2024 has been negative, with prices experiencing a consistent decrease. Weak demand, high inventories, and limited market purchases have contributed to the downward trend in prices, creating a challenging market situation for suppliers and traders.
Europe
In the first quarter of 2024, the European market for Methyl Iso-Butyl Ketone (MIBK) witnessed a sluggish trend, characterized by subdued pricing dynamics. This sluggishness was primarily driven by a notable decline in demand from downstream industries, particularly within the adhesive and coating sectors. As a result of this lackluster demand, suppliers found themselves grappling with subdued bidding activities, further contributing to the weakened pricing environment. Despite efforts to stimulate purchasing activities through incentives such as discounts on market purchases, the overall sentiment remained subdued. Additionally, although there was an uptick in the feedstock Acetone market during this period, it failed to translate into significant shifts in MIBK market sentiment. Consequently, suppliers opted to reduce their offers in response to the prevailing market conditions, as increased purchasing failed to materialize. Overall, the first quarter of 2024 saw the European MIBK market facing challenges stemming from sluggish demand and weakened pricing dynamics, highlighting the need for adaptive strategies to navigate such market conditions.
For the Quarter Ending December 2023
North America
In Q4 2023, plunging demand fundamentals from the downstream enterprises and continuous decline in the market trades from the North American to the overseas market resulted in low market purchases for the fresh stocks. In Dec 2023, the price of MIBK in the USA declined to USD 1362/ton FOB Texas. Flat feedstock Ketone values and declining production cost among the enterprises resulted in feeble price trend.
Impacted demand fundamentals continue to weigh on MIBK markets, as do proceeded with regional economic concerns, which remain uncertain. Purchasers remain hesitant to make enormous buys, and the overall slack demand furnishes buyers with leverage to push for lower costs.
Additionally, the drop in spot levels comes as producers stay constrained to clear out stocks as storage costs rise. Weak demand and deterrent market factors affected the downstream paint and coating sector's utilization of MIBK. Due to adequate supplies in the area, the MIBK sector remained constant in the US, but manufacturers are still hesitant to raise prices much further.
Asia Pacific
In Q4 2023, the price trend of MIBK in the Asia Pacific region witnessed a sluggish market trend in the wake of slow market offtakes and deteriorating demand for fresh stocks from the suppliers to buyers. In China, MIBK's prospects are bleak, and manufacturing companies are re modelling their facilities to accommodate lower bids, which has led to a decline in price. Because of the region's ample inventories and plentiful supply, the producer was forced to lower the price of MIBK. In an attempt to discourage hoarding, several manufacturing companies often reduce their ex-factory estimates when it comes to cost help. In China, the price of MIBK declined to USD 1882/ton FOB Qingdao. From a demand standpoint, modest orders were the main reason for downtrend of MIBK. The downstream antioxidant industry's operating rate decreased when the market moved into the off-season. Slow market offtakes have contributed to the market's more pessimistic outlook. Big businesses operate under specific contracts and cautiously entered the market, which has led to a lack of constructive support for the industrial chain.
Europe
Methyl Isobutyl Ketone (MIBK) pricing in the European region during Q4 2023 witnessed bearish market sentiments due to weak demand and ample supply. The market remained sluggish throughout the quarter, and no substantial disruptions were observed in the supply/demand fundamentals, which led to low trading volumes. The European MIBK market witnessed a supply overhang resulting from suppressed demand in the region, coupled with limited cost support from the upstream isobutylene market. The MIBK market was affected by high inventories and bearish demand from end-user industries along with the slow market offtakes. The quarter witnessed no plant shutdowns. The trading market of Germany for MIBK market remain thin with lower bidding for the fresh stock. Germany has seen low offers this quarter because of demand disruption and weak Purchasing activities from the downstream industries. India to China trading gap further widened as market trade activities remain thin. The demand of MIBK in Europe from downstream Automobile industry remains deterred due to stockpiling of product among the manufacturing units.
For the Quarter Ending September 2023
North America
In Q3 2023, the price trend of MIBK witnessed a sluggish price trend in the wake of deteriorating market fundamentals along with low inventory levels among the major enterprises. MIBK's price fell due to a bearish market trading conversation in the USA. Discounts from key MIBK suppliers in the United States resulted from increased output and lower demand from downstream enterprises. Due to massive stocks in the region and ample supply, producers were forced to cut the product's price. In order to minimize hoarding, several manufacturing businesses reduce their ex-factory quotations. MIBK commodity futures remain bearish, and production businesses' installations are being altered to accommodate reduced bids, resulting in falling prices. The market saw low demand as a result of changes in demand and supply dynamics, which resulted in low pricing. This quarter, demand for MIBK from the downstream solvent industries remained low, with supply surpassing demand. In Sept 2023, the price of MIBK in the USA declined to USD 1658/ton FOB Texas.
Asia Pacific
With the start of this quarter, the market fundamentals for MIBK remain bearish as the region was well-supplied with an adequate inventory level and limited demand for fresh stocks. The cost of MIBK in the region stays low due to rising production rates among major producers, resulting in oversupply. Frail market factors and bearish offering for new cargo bids plummet the price trend for MIBK. However, in Sept, remarkable growth was observed in the price trend of MIBK, with an increase of 21% when compared with Aug 2023, due to limited product availability and higher bids and offers from the suppliers to the buyers. Trading activity grew as a result of the substantial manufacturing units utilizing existing stockpiles owing to high production costs, strengthening the price. In terms of feedstock, the Acetone market is also supported by the continued utilization of product stocks, which helps to sustain MIBK pricing. Cost support remained favorable due to strong demand from the downstream sector.
Europe
In Q3 2023, the market purchasing activities for MIBK remain sluggish, with feeble trading fundamentals and limited demand from the downstream Paint and coating industries. The demand for MIBK from the Chemical Intermediate and solvent industries also remains affected, with the supply exceeding the demand, resulting in a price slump. A weak purchasing sentiment and deteriorating demand outlook contributed to further declines in European MIBK prices. There was a slump in the market for feedstock Acetone and weak market sentiments, making the purchasing activity not quite active. There was apprehension among traders about buying higher volumes or at low prices, and the market fell with limited market fundamentals. Spot prices remain dull on top of lackluster purchasing activities in the regional market. With surplus product availability and lower demand for new stock, producers feel pressured to clear their stock. As the MIBK market in the European region continued to reel under a subdued demand undertone, discussions concerning the MIBK trades market were heard to be under considerable pressure.
For the Quarter Ending June 2023
North America
In Q2 2023, the MIBK market mainly witnessed deteriorating demand and high inventory levels among the significant manufacturing units. In April 2023, the price of MIBK in the US was observed to be USD 1971/ton FOB Texas. MIBK producers in the USA have been running their plants at significantly lower rates for the past few weeks amidst global demand collapse in the aftermath of the oversupplies among the significant manufacturing units. Because of insufficient cost support brought on by diminishing downstream sectors' demand, the MIBK market was seen to be on the lower end. In addition to declining energy prices and excessive stockpiles among the main producers, the market for feedstock Acetone also experienced a slump. In June 2023, the price of MIBK in the USA declined to USD 1819/ton FOB Texas. The pricing trend deteriorated due to higher product inventories and weaker demand from downstream Paint and Rubber sectors. Profits were pinched, trading activity remained minimal, and the manufacturing rate was lowered.
Asia Pacific
In Q2 2023, the purchasing fundamentals of MIBK among the significant manufacturers slumped in the wake of a feeble market outlook and low trading environment. Even though the flow of MIBK has increased significantly, there have been several groups of offers with exceptionally attractive prices that have caught the attention of buyers. These deals are perceived as too good to miss out on, prompting buyers to make immediate purchases. Rising inventories of the feedstock Acetone with the traders and the merchants further declined the production cost of MIBK. The demand for the product fell, and the supply exceeded the requirement in the regional market. This fall in demand elevated the stocks of finished downstream products like adhesives and paints. In June, the price of MIBK in China declined to USD 1883/ton FOB Qingdao. The decrease in demand for MIBK due to a decline in the manufacturing sector, as per noted in the regional market, and lower consumption of downstream product gums and resins, then the price of MIBK plummeted.
Europe
Recession fear and low purchasing activities had hampered the market fundamentals with the revision in the price trend. In the second quarter of 2023, European MIBK prices fell sharply due to weak purchasing activity and weak price dynamics. Retailers exported goods earlier than expected, resulting in overstocking and impacting market fundamentals. Declining netbacks, feeble production costs, and lackluster demand reduced profit margins and sales for major manufacturers. The MIBK market is trending downward as the spark of activity subsides due to oversupply and low demand for solvents in the paints and coatings sector. Market participants show limited interest in exported materials due to sufficient product availability and subdued trade activity. Major MIBK-producing companies had declined their product prices in the face of weak demand and lower product bidding from the suppliers. The downstream laminate industry had also declined this quarter, and adequate product availability. The spread between feedstock Acetone and end product MIBK also shrinks in this quarter which narrows the profit margin and sales of the ventures.
For the Quarter Ending March 2023
North America
The price of MIBK elevated in the North American market, with costs ranging at USD 1931/ton FOB Texas during the first quarter of 2023. The terminal operating rate of MIBK escalated with rising consumption of raw materials Acetone and Isobutylene. Under the pressure of factory shipments, the prices of MIBK continued to escalate, and traders' offers also fell with the rising consumption rate. Under the pressure of factory shipments, the prices continued to rise, and traders' offers strengthened. It was getting easy for the MIBK market to get support due to rising demand. Due to higher procurement of MIBK for manufacturing paints, varnishes, and lacquers, the inventory of the product de-escalated.
Asia
The market value of MIBK elevated in the Asian market during Q1, 2023, with prices ranging at USD 2230/ton FOB Qingdao. The supply chain situation of MIBK was moderate, but the inventory level of the petrochemical de-escalated with the merchants in the regional market. The rising in freight costs was also likely significant to focus on, as quoted by the traders. The cost of raw materials used in the production of MIBK, such as Isobutylene and Acetone, impacted the production charges of MIBK. The prices of these raw materials remained strong, which caused the value of MIBK to rise in the Chinese market.
Europe
The market value of MIBK escalated in the European market, with prices ranging at USD 1958/ton FOB Texas. With a sharp rise in the prices of Phthalic Anhydride, which was being pushed higher due to continuous supply with tight product availability and higher spot prices. Market information and industry specialists point to decreased inventories of the acetone feedstock with traders and merchants. The product's demand increased, and the supply in the local market outpaced the demand. The stocks of completed downstream items like adhesives and paints decreased because of this elevation in demand. The supply chain was moderate, keeping the inventories of finished goods decreasing with the traders.
For the Quarter Ending December 2022
North America
The MIBK prices remained sluggish during the fourth quarter of 2022 in the regional market. The procurement of downstream Phthalic Anhydride declined to affect the market sentiments and thus contributed towards higher inventory levels with the traders. The raw material factory also repeatedly reduced its price, but there was still no indication that demand was improving. The average consumption and the plummeting crude oil prices have constrained the market growth of MIBK in the domestic region. The prices of MIBK were fluctuating in the regional market. The stockpiling of products plummeted in the USA market. Trading market sentiments slumped with declining demand from the domestic region's downstream paints and coatings sector.
Asia
During Q4 of 2022, the cost of MIBK moved in a see-saw direction in the Asian market. High supplies were generated by the MIBK producers and traders, and subsequently, their losses were generated within the regional market owing to weak demand. Due to the weaker consumer demand, the demand pressure on MIBK plummeted. Because there was an ample supply of goods in the domestic market and weak demand, the manufacturers decided to drop their offers. Fewer orders, according to purchasers, came from the downstream automation and construction industry. The trading environment in the domestic market was unfavorable, and the market was quiet.
Europe
The prices of MIBK fluctuated in the European market during the fourth quarter of 2022, with variations in the exports to the countries like India, Canada, Mexico, South Korea, China, and Belgium. Players in the downstream market were more circumspect when purchasing goods considering the current state of the global economy and adopted a wait-and-see strategy. The inventories of MIBK were steady, although in the regional market with the traders and the suppliers. The supply to the importing countries from the USA was moderate enough to meet the downstream requirements of the cosmetics and pharma industry.
For the Quarter Ending September 2022
North America
During the third quarter of 2022, the prices of MIBK were observed to be following mixed sentiments and were hovering at USD 2070/tonne FOB Texas in August, as per ChemAnalyst pricing team data. In terms of production, the operating rates were stable, and the inventories were sufficient in the domestic market. The rail and West coast port congestion resulted in a delay in the supply chain activities, and the products accumulated in the warehouses. The demand for the product from the downstream automotive and construction sectors varied throughout the quarter, whereas the paint & coating sector's demand has been improving. Also, the domestic markets' purchasing was steady.
Asia
The prices of MIBK were observed to be see-sawing in the third quarter of 2022 in India and showing a declining trend in the Chinese market, with prices around USD 1510/tonne FOB Qingdao. Moreover, the growing fear of recession and poor demand from China has pulled down Crude oil prices and further influenced the Methyl Isobutyl Ketone market. The slow purchase from the domestic market, coupled with the ample availability of the product, resulted in the declining price trend of Methyl Isobutyl Ketone. This downtrend in MIBK price was mainly caused by a drop in the market value of feedstock Acetone. As the value of Acetone was tumbling in the market, the manufacturing cost also plummeted, which led to a negative price trend for MIBK in the domestic market during the quarter.
Europe
The prices of MIBK followed an upward trend during the third quarter of 2022. Surging energy costs have affected MIBK prices in the Dutch domestic market. In the European region, production has been reduced as a result of the limited natural gas supply. The inventories were decreasing in the European region with rising consumption of the product and lowered stockpiling with the traders and the suppliers. Demand for the product was constant in the downstream construction and automotive industries but increasing in the paint & coating industry. The normalcy in the supply chain has lessened the order backlogs. Institute for Supply Management (ISM) has reported that the manufacturing purchasing managers' index, or PMI dropped to 50.9 in September.
For the Quarter Ending June 2022
North America
During the second quarter of 2022, Methyl Isobutyl Alcohol prices showcased a mixed sentiment. The prices rose significantly at the beginning of this quarter due to a supply shortage after the sanctions imposed on Russian imports. The increasing demand and the limited product availability have prompted the manufacturers to increase their offers. Additionally, the export charges have also inclined as a result of the escalating requirements from the regional markets. Eventually, in June, the prices observed a drop due to the rising fear of a recession caused by the high-interest rates. Furthermore, the purchasing activities eased in the domestic market, negatively affecting the Methyl Isobutyl Ketone pricing. In addition, the raw material prices also followed a downtrend, influencing the Methyl Isobutyl Ketone market.
APAC
The Methyl Isobutyl Ketone market dropped at the beginning of the second quarter of 2022. The price fall was supported by the decrease in upstream Crude due to the copious availability of the product. Hence, the feedstock Acetone is influenced by the decreasing upstream Crude, which results in the negative trend of Methyl Isobutyl Ketone. Also, the demand was poor from the downstream paint, rubber, and agrochemical sectors. In June, the prices showed a marginal uptrend due to the delay in product supply as the trading was hampered from South Korea. Owing to the South Korean trucker’s strike at the beginning of June, the export was delayed, increasing the Methyl Isobutyl Ketone market fell.
Europe
In the second quarter of 2022, the Methyl Isobutyl Ketone market increased in April and June. The high export charges and the significant demand from the paint, chemical and rubber manufacturers resulted in the inflating price trend of Methyl Isobutyl Ketone. In addition, the limited availability of upstream Crude and the escalating feedstock Acetone prices have pushed the Methyl Isobutyl Ketone pricing. Since early June, the price started dropping due to fear of a recession. In addition, the depriving value of the Euro has also affected the country’s economy. Moreover, the decline in raw material prices was another reason for the Methyl Isobutyl Ketone’s negative price trend.
For the Quarter Ending March 2022
North America
During the first quarter of 2022, prices of Methyl Isobutyl Ketone dropped in North America due to the bearish demand from the downstream regional market. Insufficient availability of raw materials made the manufacturers switch to another alternative which affected the MIBK market. In January, the FOB prices of Methyl Isobutyl Ketone dropped to USD 2260 per MT in the USA. Besides, dull buying demands from paint & coatings and rubber industries further worsened the market sentiments of MIBK. Moreover, high inventory levels were observed due to reduced exporting activities of the product has also affected the price.
Asia Pacific
Prices of Methyl Isobutyl Ketone (MIBK) showcased downward movement in the first quarter of 2022. The rising COVID cases in China have led to closures in the affected cities, which led to a production halt. The market closure led to a drop in demand and has slumped the buying sentiments in the domestic market, which influenced MIBK prices. Moreover, the port congestion in the Shanghai affected trade activities, further worsening the MIBK market trend. Prices of Methyl Isobutyl Ketone in India dropped to USD 1767 per MT CFR Dahej in March with a declination of 3.2%.
Europe
In Europe, prices of Methyl Isobutyl Ketone witnessed a fall owing to the drop in demand from the end-use sectors. Post-holiday break, resumption in operational activities improved the availability of the product in the regional market affecting the MIBK prices negatively. The disruption caused by the Russia and Ukraine war has impacted the trade by rerouting shipments influencing the MIBK price to drop. Moreover, the conflict resulted in halting of shipments from various countries and sanctions on Russia’s imports. The FOB prices of Methyl Isobutyl Ketone in the Netherland settled at USD 2120 per MT in January.
For the Quarter Ending December 2021
North America
In North America, MIBK market fluctuated in a stable to narrow range in Q4 2021. Supply of upstream, Acetone gradually increased by Q4 which eased the manufacturing cost of MIBK viably in the region. Demand for several segments remained sturdy while it declined from some of the segments like paints and coatings and varnishes due to the seasonal slowdown. Easing freight rates by mid-Q4 also assisted in lowering the cost of MIBK in the regional market. FOB prices of MIBK upstream Acetone dwindled down to USD 1320 per MT in December.
Asia Pacific
In Q4, the market outlook of MIBK in Asia fluctuated in a stable to narrow range following slow pickup in its offtakes. Aided by dull market sentiments, Methyl Isobutyl Ketone (MIBK) prices slumped in October. The fall in prices has been supported by improved export activities from South Korea. Due to abundant supply in India, demand for the raw material Acetone has been steadily dropping, due to reduced offtakes from paints and coating industry on low demand. Henceforth, MIBK prices followed a downward trajectory supported by consistent fall in feedstock values in the domestic market. Several traders were heard offering their cargoes at heavy negotiations to idle their inventory by December end, at times of dull demand from paints and coating and rubber industries. MIBK CFR prices in India were assessed at USD 1970 per MT in December.
Europe
In Europe, MIBK market continued to experience a downward trend in Q42021. MIBK prices dropped in early Q4 backed by the increment in the supplies of feedstock Acetone which considerably brought down its manufacturing cost. Several players even narrowed the production of MIBK due to uncertainty in the demand pattern. The slowdown in yearend demand also contributed to bring down its prices in the European region.
For the Quarter Ending September 2021
North America
In North America, MIBK market showcased mixed sentiments during the third quarter of 2021. At the beginning of the quarter, decline in the feedstock Acetone values led to the dip in the prices of MIBK. Additionally, in August traders offloaded their inventories as a prophylactic measure before the hurricane season that further brought down MIBK prices in this timeframe. However, in the US, MIBK prices soared in the aftermath of Ida hurricane as its impact on production levels disrupted the supply chains in the region. Hence, international logistic issues further worsened the market dynamics of MIBK in the US in this quarter.
Asia Pacific
In Q3, the market outlook of MIBK in Asia observed mixed sentiments. At the beginning of the quarter, an improvement in the production levels was witnessed after the resurgence of industrial operation that led to the ample supply of the product. In India, MIBK prices witnessed a plunge followed by the dull market sentiments and the dwindling prices of feedstock Acetone during this quarter. However, in September an unprecedented rise in the values of MIBK was witnessed backed by high energy prices in the international market and adverse logistic challenge in China. In September, EX-Mumbai Methyl Isobutyl Ketone prices settled at USD 2739.12 per MT witnessed a significant hike by USD 265.92 since July.
Europe
In Europe, MIBK market experienced a downward trend during Q3 of 2021. MIBK prices dropped in the beginning of the quarter backed by the increment in the supplies from the overseas and dull buying momentum. However, in the later part of the quarter, supplies in the European region declined as imports from the US were impacted as a repercussion of the Ida hurricane. Thus, in September, marginal hike in the values of MIBK was observed due to the improvement in the demand from the downstream industries.
For the Quarter Ending June 2021
North America
The resumption of refineries and crackers in the US Gulf region after the restoration of industrial infrastructure eased the MIBK supply outlook in the North America as the region recovered from the devastating impact of the winter storm Uri. Upstream Acetone availability was ample to keep the production of MIBK in line and a much-needed ease in Acetone rates in the second half of Q2 maintained better operational margins. Enquiries from the domestic and overseas market surged, and the region observed seasonal hike from the paints and coatings & rubber industries to cope up with the rising demand from the building and construction sector. The prices of MIBK observed a downtrend in Q2 with FOB Texas offers settling at USD 2680 per tonne in June.
Asia Pacific
MIBK supplies in the Asia Pacific region were balanced as several manufacturers stocked up enough of Acetone which kept the production of MIBK at optimum efficiency in the second quarter of 2021. Due to the impact of second COVID wave in India, the government imposed partial lockdown to contain the spread which further limited the industrial and commercial activities in the first half of the quarter. Demand observed some rebound in the second quarter as lockdown eased in India and offtakes picked up from the paints and coating industries. Chinese supplies remained ample amid dampened domestic sales. MIBK pricing trend eased in Asia with the quarterly average standing at USD 1260 per tonne FOB Shanghai in Q2.
Europe
Supplies in the European region were surged as operating rates at several major manufacturers ramped up with better availability of upstream Acetone. Further improved imports from the US supported the availability of MIBK in the regional market. Demand remained firm from the paints & coating and rubber industries with the revival in the construction segment whereas, offtakes were consistent from the automotive sector. Buyers pushed for better discounts keeping eyes on strong inflow of competitively priced MIBK imports.
For the Quarter Ending March 2021
North America
MIBK supplies in the region were tight during the first quarter of 2021, due to the limited availability of the key feedstock Acetone, followed by the production related hinderances caused by plant turnarounds amid sub-zero temperatures in the USA Gulf region in mid-February. Altivia Ketones raised the prices of MIBK for March deliveries by USD 100/MT in early February. Demand was bolstered amid short supplies, after enquiries surged from the downstream electronics and paint & coatings sector. FOB Texas MIBK prices witnessed a significant surge of USD 230/MT on month-on-month basis to reach USD 2625/MT for April MIBK deliveries. Exports to different regions are likely to stay hampered at least till April.
Asia-Pacific (APAC)
The Asian MIBK market was balanced-to-tight during the first quarter as the import volumes stood hampered due to material shortages occurring in the western regions, followed by the production hiccups as the downstream plant’s shutdown prior to the Chinese Lunar New Year holidays. However, several buyers sought to replenish their inventories after the holidays sensing increment in demand from the paints and coating sector. FOB prices for the MIBK April deliveries were settled at USD 1272/MT in March-end.
Europe
The European market was sluggish as the supplies were tight during the first quarter of 2021 owing to curtailed production amid bad weather conditions and container shortages causing raw material Acetone to shorten in supply. Extreme weather conditions led to reduced operating rate of the plants in the northwestern European region. Demand remained balanced in the region as the offtakes from the automotive and construction sector surged towards the end.
For the Quarter Ending September 2020
Asia
The Asian MIBK market witnessed consistent demand from almost all the end-use sectors, majorly rubber tyre producers and the paints & coatings sector by the end of third quarter. Due to COVID-19 pandemic, the majority of production plants which became non-operational in Q2 resumed their operations near to the end Q3. China’s Ningbo Zhenyang started its 15,000 tonnes/year plant by the closing of Q3. Supply remained impacted as several leading players delayed resumption in their production lines. PetroChina Jilin delayed the restart of its 15,000 tonnes/year plant till October, from the earlier scheduled September. This triggered a marked shortage in the supply of MIBK in the region. Firming crude supported by nagging production helped in pushing the prices upward since the August end.
North America
The North American MIBK demand in the US and other American countries was noted to be constant during the third quarter. Strong pick-up in the upstream Propylene and crude oil further further rendered an inclining trend to the regional MIBK prices. Lack of movement across the region in Q2 dure to trade related restrictions was seen easing by the mid of Q3. Slowdown in the downstream construction and paints & coating sector in the US significantly reduced the overall MIBK consumption which however is anticipated to trace back to pre-COVID era towards the year-end.
Europe
Shortage in the product supply was reported in Q3 on account of halted imports from the Asian countries like China which was heard dedicatedly ramping up feedstock exports over derivatives. Plant turnarounds amid surging COVID-19 cases exacerbated the supply shortage in the region during Q2 and Q3. However, increasing demand and recovering dynamics in the downstream paints & coatings and automotive sectors bolstered the overall producer run rates towards the end of Q3.
