In February 2025, methyl ethyl ketotone (MEK) prices fell in Asia due to market pressure from sluggish export activity, large supply, and low demand in important industries like paints and coatings. But after months of falling prices, Europe saw a resurgence, helped by rising energy prices and increased demand for adhesives and coatings.

At the same time, Anhui Zhonghuifa's production expansion and Huizhou Yuxin's stable operations added more supply, keeping profit margins low for domestic manufacturers. Finally, once production resumed after the Lunar New Year, supply pressure increased, further lowering prices. China's MEK demand remained low due to slow growth in chemical intermediates, coatings, and adhesives. Construction and industrial production slowed, which decreased solvent-based uses. Bulk purchases were also restricted by conservative procurement practices and economic uncertainty.

MEK consumption in Asia and the Middle East is anticipated to decrease as Ramadan approaches, further pressure on the petrochemical industries including MEK. Due to reduced trading activity and shortened working hours during the fasting month, procurement will be impacted in a number of downstream industries. This seasonal slowdown, combined with existing weak demand and excess inventory, is expected to cap any potential price recovery.

Following months of decrease, MEK prices in Europe rose due to rising energy costs and growing demand from adhesives and coatings. With the need for office space increasing by 20.9% annually, the Dutch construction industry appeared to be stabilizing, which supported the use of paint and coatings.

Despite some positive signs in other areas, the ongoing slump in residential construction is holding back overall growth. Then, adding to the uncertainty, the U.S. president's proposal of a 25% tariff on European chemical imports on February 26, 2025, has thrown a wrench into the works. Given that the U.S. sources MEK from both Asia and the Netherlands, these tariffs could significantly reshape the market. European MEK exports might take a hit, while Asian suppliers could gain a competitive edge. This potential shift could lead to major changes in trade flows and, consequently, alter future MEK pricing.

Due to energy prices that are around four times higher than those in the US, the European chemical industry continues to suffer high manufacturing costs. Although MEK supply remained steady, longer-term pricing trends were impacted by supply chain uncertainty brought on by trade conflicts with important partners like the USA and customers' cautious inventory management and low procurement activity, which prevented more substantial price increases.

Looking ahead, MEK prices are likely to face continued downward pressure due to oversupply and weak exports. In Asia, the approaching Ramadan period will further dampen trading activity, while in Europe, high production costs and moderate demand will support the price.