For the Quarter Ending June 2023
North America
Lower spot and contract prices in Q2 2023, on top of muted fundamentals such as soft demand, ample supply, and feedstock Ketone prices, slow the prices of Methyl N-Propyl Ketone (MPK) in the US market. The weakness in the downstream solvent industry in the production of flavors and fragrances, as a cleaning agent in the electronics industry, contributed to weaker forecasts and deterred earnings in Q2 2023. Buyers' interest in bulk purchasing remained thin, and sluggish upstream crude prices further supported the downward trend. MPK prices slipped due to deteriorating demand and limited trading volume from the significant producing units. Traders further expected the prices to decline further with the stockpiling of inventories in the region. The cost of MPK dropped further, where low interest, adequate stock, and a feeble downstream market stay the driving variables. Downstream interest stayed impacted because of low buys and cautiously operating assembling units as indicated by consumers' needs. The demand for MPK from the overseas market remained feeble, with limited demand for fresh stocks.
Asia Pacific
In Q2 2023, the demand fundamentals for MPK started with healthy demand fundamentals and limited product supply. However, during May and June 2023, the adequate supply of products and deteriorating product demand impacted the price trend. MPK demand in the Asian market remains impacted by weak spot and contract price discussions. The cost of MPK drops further, where low interest, adequate stock, and a feeble downstream market stay the driving variables. Inflows of cargo from the overseas market to the Asian port remain sluggish with lower market fundamentals. The demand for MPK from the downstream solvent remains weak, with cautiously operating significant ventures. MPK manufacturers in Asia had a low willingness to import more shipments from overseas. In the Asian market, the demand for MPK plunged, and trading activities remained feeble, which forced the producers to lower the price trend—tepid market sentiments alongside the usage of existing inventories brought about such a weak cost pattern. The Asian market has seen low US offers this quarter because of demand disruption. Demand is a real concern in the Asian market, keeping the MPK viewpoint bearish. However, significant producers have been cutting production rates in trying to offset this drop in demand.
Europe
In Q2 2023, the price of MPK showcased a bearish price trajectory in the wake of limited purchasing orders and low purchasing activities. As trading activities were limited with low market interest, producers rushed to clear their MPK inventories. This quarter, the price of European MPK slipped as the supply was sufficient, and the demand performance was mainly flat. Feeble market trading and lower bidding of the product slumped the regional prices. Exports from Germany to the global market also decreased, and suppliers remained reluctant to buy the product in bulk. The demand for MPK from downstream has waned with oversupplies and weak market fundamentals. Traders said that the requirement for MPK has been slowing down and hit market dynamics coupled with uncertainty in regional economic growth. In terms of feedstock, Ketone prices slumped with slow market offtakes for the trading. Purchasing activity remains limited as buyers purchase the stocks according to their needs and hope to see additional drops. Despite run rate cuts, overall supply levels are sufficient to fulfill the product requirement from the downstream solvent market.
For the Quarter Ending March 2023
North America
Throughout the USA, the price of Methyl N Propyl ketone (MPK) has been fluctuating throughout the first quarter of 2023. Due to sluggish orders from the construction, paints & coatings, and other solvent sectors, the price leveled out in January. Following the flattening of the price trend, the product's demand marginally increased, and the makers reported a high price trend in the US market. Participants in the market claim that the US market has seen a decline in new orders and that demand from the downstream construction sector (paints and coatings) has been poor to stable.
Asia
The cost of MPK showed a declining trend for the first two months before slightly increasing in the final month. The traders claimed that little cargo was imported for the Indian market and that there was a lot of inventory from other Asian nations. According to market players in the domestic market, demand has been stable to poor, and there have been few instances of fresh orders being requested by end users, which has led to a negative attitude toward pricing. Due to growth in the printing and downstream ink industries in March, prices began to move upward. The March PMI figures showed an improvement in overall operational conditions for the twenty-first consecutive month. India's manufacturing activities achieved record highs thanks to higher growth in new orders.
Europe
The price of Methyl N Propyl Ketone (MPK) fell in Europe throughout the first quarter of 2023 due to consistent supply and sufficient availability in the market. The construction, coating, and other solvent industries had little demand for MPK, and the majority of the downstream procurement was based on demand. High-interest rates and other relevant factors hampered the downstream solvent industries in the European region. The global economy's sluggish performance dampens German exports, and high inflation rates dampen consumer spending and construction activity by reducing purchasing power and significantly increasing financing costs.
The Methyl N-Propyl Ketone (MPK) market in the United States experienced a downward trend during the fourth quarter of 2022. In this quarter, the global market remained stagnant, and the product was stockpiled as a result of declining orders from the overseas and US regional markets. Inflation and high-interest rates in the United States are to blame for the low demand in the downstream paints & coatings and construction industries. According to market participants, the majority of purchases were based on demand. The approaching holiday in the final month of Q4 further reduced buyer demand and orders. In addition, domestic consumers tended to wait and buy in the face of inflation.
The price of Methyl N Propyl Ketone (MPK) decreased in the Asia market during the fourth quarter of 2022. The downstream industry showed little interest, and the abundant stockpile of the item in the field decreased the cost of MPK. Due to poor market sentiment, the end-use paints and coatings sector demonstrated MPK's weak demand in the Asian market. During the fourth quarter, China's government imposed a zero COVID restriction, affecting domestic and international market trading. In order to clear space on the market for the material, traders sold the product at an offer price due by the end of the year.
During the fourth quarter of 2022, the price trend of Methyl N Propyl Ketone (MPK) decreased in Europe as a result of negative market sentiment. End-use industries saw little demand due to high inflation and a declining buying trend in the European market. Due to the ample gas storage in major EU nations, the price of natural gas on the market decreased and lowered production costs. Several businesses slowed down their production rates due to low demand from end-use industries, but the product was readily available. Producers offered to destock their products at a low price at the end of the quarter as the holidays got closer.
