The Methoxy Propyl Acetate (MPA) market in India and China is projected to show positive momentum in January 2025, supported by rising feedstock acetic acid prices and improving demand from international markets. After facing a challenging end to 2024 with price declines due to MPA oversupply, reduced production, and subdued downstream activity, the outlook for early 2025 reflects a shift toward recovery driven by strengthening global demand and stable domestic operations.

In India, MPA production remained stable despite a manufacturing sector slowdown in late 2024, as producers aligned output with steady domestic demand. The country’s manufacturing activities showed resilience, signalling robust industrial activity and a promising recovery potential. However, MPA high input costs, slower new order growth, and inflationary pressures remained key challenges.

China’s construction sector, a significant consumer of MPA for paints and coatings, experienced slower growth in December 2024 but is expected to rebound in 2025 due to regulatory optimism and increased investments in residential and infrastructure projects. Rising demand from international markets further enhances growth prospects, providing opportunities for exporters to capitalize on strengthening global trade conditions. MPA Manufacturers are optimistic about output expansion despite ongoing competition and pricing pressures, underpinned by sustained employment growth and a positive outlook for industrial chemicals.

However, MPA prices remained on the lower side due to weak demand from the property sector. The property sector remains burdened by the debt overhang of distressed developers, while household and business confidence are subdued. The manufacturing PMI, which edged down to 50.1 (December 2024) from 50.3 in November (as per the data released by NBS China), highlights the fragile nature of the recovery, with export orders, employment, and factory prices still in negative territory. Analysts warn that sustained support is crucial, as the economy faces risks from potential U.S. tariffs and structural imbalances in the property sector.

In major parts of Asia, MPA market faced oversupply and cautious downstream demand in Q4 2024, with high inventory levels and limited buyer activity pressuring prices. However, phased production adjustments and robust export growth in late 2024 helped stabilize the market. Planned expansions in downstream capacities, such as acetate esters and coatings, are expected to provide additional support to domestic demand.

The Chinese construction sector, though subdued in late 2024, is forecasted to gain momentum in 2025 as infrastructure investments and government stimulus measures begin to take effect. Rising international demand is expected to act as a key driver for export-oriented MPA producers, further bolstering market recovery.

As per ChemAnalyst analysis, with improving global demand, rising feedstock acetic acid prices, and strengthening downstream industries, the MPA market in India and China is poised for a positive start to 2025. While challenges like high production costs and competition persist, strong international market activity and planned capacity expansions offer a solid foundation for sustained growth.