The global Methyl Ethyl Ketone (MEK) market showed mixed trends during mid-January 2025, with prices rising in the APAC region while remaining under pressure in North America and Europe. Market dynamics were shaped by variations in demand, export trends, and feedstock availability.

In China, MEK prices continued their upward trend, supported by robust export activity and tight domestic supply. Major manufacturers reported lows inventory levels as pre-sales dominated January, leaving limited stock for immediate market demand. At present, MEK prices are running at relatively high levels, with domestic market activity slowing. Downstream factories have become more cautious, with many postponing purchases until after the Spring Festival holidays. This hesitation has contributed to muted trading activity, as most operators are not optimistic about February’s market performance. Additionally, high domestic MEK prices are beginning to affect export orders, with fewer shipments expected in February.

Domestic MEK production remained stable, driven by steady feedstock costs. However, the rapid price increases in December 2024 and January 2025 have eroded China's price advantage in export markets. MEK export volumes surged in late 2024, with key destinations including South Korea, Indonesia, Vietnam, and India. Still, the high domestic prices are now impacting export competitiveness, with fewer orders anticipated in February. Additionally, planned factory maintenance in mid-February is expected to ease supply pressures.

The construction slowdown further pressured demand, especially in northern China, where low temperatures stalled most projects. While southern regions saw some activity, it was insufficient to offset the overall decline. Paint and coatings industries, key MEK consumers, faced lower sales volumes due to seasonal and economic challenges. Traders reported limited willingness to stock inventory before the holiday period, contributing to a cautious market outlook.

In India, MEK demand showed moderate improvement, driven by steady activity in premium residential real estate and high-value construction projects. However, winter weather in northern regions curtailed broader construction activity, leading to mixed trends. Manufacturers maintained steady production, but ample inventories and competitive import prices limited price momentum. Stocking ahead of the Lunar New Year provided temporary support, although long-term demand remained uncertain.

In Europe, MEK prices in the Netherlands remained under pressure due to weak demand from adhesives, coatings, and paint industries. High energy costs, economic uncertainties, and competitive imports from Asia exacerbated challenges for domestic producers. Seasonal slowdowns and a cautious procurement strategy among buyers further contributed to the stagnant market environment.

Similarly, the U.S. MEK market faced subdued demand as severe winter conditions disrupted construction-related activities. Downstream consumption remained weak, with holiday season inactivity compounding the market's challenges. Buyers focused on immediate requirements, avoiding large-scale inventory builds.

As per ChemAnalyst, MEK prices are likely to remain under pressure in North America and Europe in the coming weeks. In APAC, Lunar New Year holidays are expected to lower procurement activity, and ample supply may limit further price increases in February.