For the Quarter Ending December 2024
North America
In Q4 2024, the North American MEK market experienced a consistent decline. October saw prices continue downward due to weak demand and increased Asian competition. Improving supply and decreasing import prices, influenced by lower freight costs, further pressured prices. Reduced new orders contributed to subdued market conditions.
September's U.S. manufacturing downturn, with falling production, exacerbated the situation. Weak MEK demand persisted due to reduced consumption in downstream sectors, including paints, coatings, adhesives, and construction. By late October, prices had declined due to reduced import costs. In November, prices continued to fall, influenced by weak cost support, import pressure, and lackluster downstream demand. Increased global MEK supply following Golden Week in China furthered the supply-demand imbalance.
In December, prices continued to decline due to import pressure and weak domestic demand. While seasonal shipping activity increased, high inventories and cautious procurement suppressed market sentiment. Economic challenges, including high mortgage rates and housing market disruptions, hindered recovery. In Q4 2024, the North American MEK market witnessed a significant declining trend, culminating in a quarter-ending price of USD 1370/MT CFR Texas, reflecting weak demand, ample supply, and decreasing production costs.
APAC
Throughout Q4 2024, the Methyl Ethyl Ketone (MEK) market in the Asia-Pacific (APAC) region experienced mixed price trends. Prices stabilized in October as the market attempted to recover from months of declines, but weak demand and oversupply persisted. In November, prices declined further due to subdued downstream activity in paints, coatings, and adhesives, as well as sluggish construction activities. However, in December, prices rebounded, driven by strong export demand, and tightening supply. By November, the market saw a price drop, as post-Golden Week restocking faded, and supply increased while demand stayed weak. High inventory levels and conservative purchasing strategies among end-users further contributed to the decline.
December marked a significant improvement in MEK prices. Strong export activity to key trading partners such as South Korea, India and Indonesia bolstered market sentiment. Increased pre-Lunar New Year stocking and competitive pricing in China attracted international buyers, absorbing domestic output and tightening local supply. By the end of the quarter, MEK prices in China settled at USD 1,073/MT FOB Qingdao, reflecting a bullish sentiment driven by robust exports and gradual downstream recovery.
Europe
In Q4 2024, the European Methyl Ethyl Ketone (MEK) market experienced a pronounced downward price trend. This decline stemmed from a combination of weakening demand, increased supply, and falling feedstock costs, further compounded by a slowdown in the construction sector. October began with some price stability due to demand from the Dutch paint and coatings industry, but prices soon began to fall as supply improved and demand softened. This downward momentum continued into November, exacerbated by high inventory levels and reduced demand from key importing regions. Feedstock price drops further lowered MEK production costs, adding to the downward pressure. December saw a brief price stabilization before further declines, driven by persistent weak demand, limited feedstock support, and competition from Asian imports. The eurozone’s economic contraction and reduced construction output further dampened MEK demand. As the year concluded, producers offered discounts to manage excess inventories. In Q4 2024, MEK pricing landscape in Europe witnessed a significant downward trend, culminating in a quarter-ending price of USD 1415/MT FD Rotterdam, reflecting weak demand, ample supply, and decreasing production costs.
For the Quarter Ending September 2024
North America
In Q3 2024, the Methyl Ethyl Ketone (MEK) market in North America witnessed a substantial increase in prices, with notable factors driving this upward trend. Various elements contributed to this surge, including robust demand from downstream industries, limited supply availability, and escalating production costs. The heightened procurement activities ahead of the upcoming holiday season bolstered market dynamics, while lower inventory levels exerted upward pressure on prices.
Additionally, high feedstock prices and energy costs further pushed MEK prices upwards. In the USA specifically, the market experienced the most significant price changes, with a 26% increase from the same quarter last year. The quarter-on-quarter increase of 5.8% underscored the consistent upward trajectory of prices. Moreover, the price comparison between the first and second half of the quarter also saw a significant rise, reflecting the strengthening pricing environment.
Ending the quarter, the price for MEK in the USA was recorded at USD 1569/MT CFR Texas, exhibited a consistent positive sentiment characterized by robust demand, supply constraints, and production challenges.
APAC
In Q3 2024, the methyl ethyl ketone (MEK) market displayed a mixed trend. Compared to the same quarter in 2023, prices saw a 9.7% decline, reflecting weak demand and reduced cost support from feedstock butanol, which lowered production costs. However, compared to Q2 2024, there was a modest recovery, with prices increasing by 3.9%, indicating some stabilization in the market. Despite this, overall demand remained sluggish, particularly from the paints and coatings sectors, which impacted MEK consumption. Factors influencing these price declines included weak demand from downstream sectors, such as paint and coating, and high inventory levels, exerting downward pressure on prices. Seasonal factors, like heavy rainfall impacting construction activities, further dampened demand, contributing to the negative sentiment in the market. Japan, experiencing the most significant price changes, saw a significant shift between the first and second half of the quarter, emphasizing the deteriorating pricing environment. Ending the quarter, the price for MEK in the Japan was recorded at USD 1068/MT FOB Osaka.
Europe
In Q3 2024, the Methyl Ethyl Ketone (MEK) pricing landscape in Europe witnessed a notable uptrend, driven by a confluence of factors that shaped market dynamics. Tightening supply conditions across the region, compounded by logistical challenges and recent flooding in central and eastern Europe, exerted upward pressure on prices. As the market transitioned from the holiday season, procurement activities surged, fueling anticipation for heightened market activity post-summer. Low stock levels added to the price momentum, while disruptions in the distribution network due to flooding kept energy firms on alert, further impacting supply chains. Netherlands, experiencing the most significant price changes, reflected the overall trend in Europe. The quarter showcased a 31.8% increase from the same period last year, underlining the substantial price escalation. Moreover, the 1% increase from the previous quarter. Culminating in the latest quarter-ending price of USD 1693/MT of MEK FD Rotterdam, the pricing environment in the region exhibited a consistent positive sentiment characterized by robust demand, supply constraints, and production challenges.
For the Quarter Ending June 2024
North America
In Q2 2024, the Methyl Ethyl Ketone (MEK) market in North America experienced a pronounced upward trajectory in prices, primarily driven by several converging factors. A notable surge in upstream crude oil prices, influenced by geopolitical tensions and supply disruptions, significantly elevated MEK production costs. Concurrently, a robust demand from the downstream paint and coating industries, particularly within the construction and automotive sectors, compounded the upward pressure on prices.
Seasonal procurement behaviors also played a critical role, with heightened activity observed as industries ramped up for summer operations. Inventory management strategies further contributed to the rising prices, as market participants anticipated continued demand growth, opting to secure supplies in advance.
Focusing on the USA, which witnessed the most substantial price shifts, the MEK market mirrored global trends but with amplified effects. A striking 5.1% increase from the same quarter last year underscored a persistent bullish sentiment, driven by steady economic recovery and infrastructural investments. However, contrasted against the previous quarter in 2024, there was a 7% decrease, indicative of periodic market corrections amidst the broader upward trend. Ultimately, the quarter concluded with MEK prices at USD 1451/MT CFR Texas, reflecting the complex interplay of driving forces.
APAC
In Q2 2024, the Methyl Ethyl Ketone (MEK) market in the APAC region faced a tumultuous period marked by notable price fluctuations. This quarter was heavily influenced by several key factors, including supply-demand imbalances, feedstock cost dynamics, and geopolitical tensions. The supply chain disruptions, driven by maintenance shutdowns and adverse weather conditions, significantly tightened the market. Concurrently, heightened procurement activities, coupled with escalating crude oil prices, further exacerbated production costs, applying additional upward pressure on MEK prices. Despite these adversities, downstream demand from sectors such as construction and automotive industries remained consistent, providing a semblance of stability to the market. Focusing on Japan, the region experienced the most pronounced price volatility due to these aggregated factors. The overall trend in Japan exhibited a bearish sentiment, exacerbated by subdued demand and reduced manufacturing output. Seasonality played a pivotal role, with lower-than-anticipated activity in the construction sector during the hotter months. The pricing environment for MEK in Japan reflected a stark 12.3% decline compared to the same quarter last year. Additionally, prices witnessed a 17.3% drop from the previous quarter of 2024, reflecting ongoing market softness. Overall, the pricing environment for MEK in the APAC region during Q2 2024 has been predominantly negative, driven by a confluence of supply chain disruptions and subdued demand, despite consistent downstream consumption. Finally, the quarter-ending price for methyl ethyl ketone in Japan was recorded at USD 1003/MT FOB Osaka.
Europe
In Q2 2024, the Methyl Ethyl Ketone (MEK) market in Europe experienced a distinctly negative pricing environment, with numerous factors contributing to a notable decrease in market prices. The primary influencers of this downturn included reduced costs of feedstock butanol and energy prices, which exerted substantial downward pressure on MEK prices. Normalization of supply conditions, post the lifting of force majeure by a major manufacturer on oxo-alcohols, led to a stability in supply in the market, further depressing prices. Weak demand from the downstream paint, coating and plasticizer industry coupled with sluggish procurement activities, as buyers anticipated further declines, exacerbated the bearish sentiment. The Netherlands observed significant price fluctuations within this quarter. The overall trend revealed a pronounced correlation between market supply dynamics and seasonal demand patterns, which typically improve in summer but remained suppressed this year. Comparing trends, the price of MEK in this quarter decreased by 6.1% from the previous quarter. Concluding the quarter, the price of MEK in the Netherlands stood at USD 1536/MT FD Rotterdam. This persistent decline throughout Q2 2024 indicates a predominantly negative pricing environment, influenced by oversupply, reduced feedstock costs, and weakened downstream demand.
For the Quarter Ending March 2024
North America
During Q1 2024, the pricing landscape for Methyl Ethyl Ketone (MEK) in North America region exhibited a diverse trend, marked by a mix of positive and negative sentiments. Various factors influenced prices across the region, leading to fluctuations in different directions. USA experienced notable price shifts during this period. One of the main drivers behind the price surge in January and February was the supply chain disruptions caused by various incidents globally. These disruptions, such as the drought in the Panama Canal and security concerns in the Red Sea, led to delays and higher shipping costs for MEK imports. Additionally, plant shutdowns globally further tightened supply, exacerbating the upward pressure on prices.
Additionally, heightened production costs in the exporting nations stemmed from increased upstream crude oil prices due to geopolitical tensions in the Middle East, alongside high freight costs. The elevated feedstock butanol prices further compounded production expenses during this period. However, MEK prices saw a decline in March due to due weaknesses in U.S. construction spending observed, as reported by the Commerce Department that led to low demand of MEK in paint and coating. Nevertheless, MEK prices in the USA witnessed a significant increase compared to the previous quarter, driven by supply chain disruptions and escalating tensions in the Middle East since October.
Finally, the quarter-ending price for methyl ethyl ketone in USA was recorded at USD 1510/MT CFR Texas, reflecting the mixed sentiments observed during the first quarter.
APAC
During Q1 2024, the pricing landscape for Methyl Ethyl Ketone (MEK) in APAC exhibited a diverse trend, marked by a mix of positive and negative sentiments. Various factors influenced prices across the region, leading to fluctuations in different directions. Japan experienced notable price shifts during this period.
One of the main drivers behind the price surge in January and February was the moderate demand for MEK in the downstream paint and coating industries, fueled by growth in the automobile sector. Additionally, the high production costs resulted from increased upstream crude oil prices due to geopolitical tensions in the Middle East contributed to this increase. Furthermore, the elevated feedstock butanol prices further escalated production costs during January and February. Active procurement and positive market sentiments bolstered prices, with stocking before the lunar year providing additional support. However, MEK prices experienced a decline in March due to reduced demand observed in the construction sector, coupled with weakened feedstock prices during that month. Nevertheless, MEK prices in Japan saw a significant decrease of 18% compared to the same quarter last year and recorded a 13% decrease from the previous quarter in 2024.
Finally, the quarter-ending price for Methyl ethyl ketone in Japan was recorded at USD 1097/MT FOB Osaka, reflecting the mixed sentiments observed during the first quarter.
Europe
During Q1 2024, the pricing landscape for Methyl Ethyl Ketone (MEK) in European region exhibited a diverse trend, marked by a mix of positive and negative sentiments. Various factors influenced prices across the region, leading to fluctuations in different directions. Netherlands experienced notable price shifts during this period.
One of the main drivers behind the price surge in January and February was the moderate demand for MEK in the downstream paint and coating industries, fueled by growth in the automobile sector and construction sector in Netherlands. Additionally, heightened production costs stemmed from increased upstream crude oil prices due to geopolitical tensions in the Middle East, alongside high freight costs. The elevated feedstock butanol prices further compounded production expenses during this period. Active procurement activities in the housing market fueled demand for MEK in the downstream sectors, while temporary shutdowns of MEK units globally during the lunar year added upward pressure on prices. However, MEK prices saw a decline in March due to reduced demand in construction and weakened feedstock prices. Nevertheless, MEK prices in the Netherlands witnessed a significant increase compared to the previous quarter, driven by supply chain disruptions and escalating tensions in the Middle East since October.
Finally, the quarter-ending price for methyl ethyl ketone in Netherland was recorded at USD 1720/MT FD Rotterdam, reflecting the mixed sentiments observed during the first quarter.
