For the Quarter Ending March 2025
North America
In Q1 2025, the North American Methyl N-Propyl Ketone (MPK) market has experienced price decline, heavily influenced by weak performance in key downstream sectors such as paints and chemicals. The paints and coatings industry in the U.S. faced notable headwinds amid a slowdown in the housing market, rising mortgage rates, and cautious consumer sentiment.
Major players like Sherwin-Williams and PPG Industries reported lower-than-expected earnings, driven by weak demand in architectural, automotive, and aerospace coatings. This subdued consumption directly impacted the solvent sector, including MPK, which is extensively used in coatings formulations. Additionally, the chemical industry witnessed softened activity as manufacturers limited procurement to manage costs and navigate uncertain macroeconomic conditions. Inventory levels remained high across the value chain, further reducing the need for fresh orders.
The combined effect of cautious buying behaviour, underwhelming demand from core solvent-consuming sectors, and oversupply in the domestic market continued to suppress MPK prices throughout the quarter, reinforcing bearish sentiment across North America.
APAC
During Q1 2025, the Methyl N-Propyl Ketone (MPK) market in the APAC region witnessed a sharp price decline of 5% from the previous quarter, primarily driven by oversupply and weak downstream demand. Despite steady performance in the coatings sector and seasonal factors such as the Lunar New Year, market participants faced significant headwinds. The polymer industry, a major downstream consumer, operated below capacity due to weak end-use demand and colder weather disruptions, especially in China and India. Converters limited their procurement to immediate production needs, resulting in high warehouse stock and reduced market liquidity. Meanwhile, construction activity remained uneven across the region, with limited new project starts and cautious investment amid ongoing macroeconomic uncertainty. Buyers in both polymer and construction sectors adopted conservative procurement strategies, contributing to minimal trading activity. Ample inventories, stable feedstock costs, and muted global demand further suppressed prices. This cautious approach and lack of robust downstream consumption ensured that any potential for a rebound was outweighed by persistent bearish market sentiment.
EUROPE
In Q1 2025, the Methyl N-Propyl Ketone (MPK) market in the European region witnessed a decline in comparison to previous quarter. The European paints and coatings sector is navigating a complex landscape marked by both challenges and opportunities. Economic slowdowns and stringent environmental regulations have impacted market dynamics. For instance, PPG Industries reported a 5% decline in net sales, attributing it to reduced demand in industrial and architectural coatings, influenced by higher mortgage rates and weakened factory activity in the U.S. and Europe.
Despite these hurdles, the market is witnessing a shift towards sustainable solutions. The demand for eco-friendly and low-VOC coatings is rising, driven by environmental regulations and consumer. Technological advancements, such as the development of bio-based resins and waterborne technologies, are gaining traction. Companies like Arkema are introducing innovative products, a waterborne alkyd resin made from 97% bio-based raw materials. In summary, while economic and regulatory challenges persist, the European paints and coatings industry is adapting through innovation and a focus on sustainability, positioning itself for gradual recovery and growth.
For the Quarter Ending December 2024
North America
In Q4 2024, the Methyl N-Propyl Ketone (MPK) market in North America experienced a sustained decline, largely due to several key factors impacting both supply and demand. A reduction in feedstock costs, including Propylene and Acetone, led to decreased production costs, yet this did little to stimulate demand for MPK. The primary downstream sectors, such as Coatings and Construction, showed limited activity, keeping consumption at subdued levels.
This was further exacerbated by the availability of ample inventory of the commodity, which helped meet any existing demand but prevented significant market movements. In addition, the hurricane season caused widespread disruptions in production and supply chains, leading to delays and operational halts in certain facilities, which further contributed to the bearish market sentiment.
Despite efforts to stabilize supply and moderate production, the combination of low demand for the product, oversupply in storage, and logistical challenges created a challenging market environment. As a result, the MPK market in North America continued its downward trajectory.
APAC
In Q4 2024, the Methyl N-Propyl Ketone (MPK) market in India experienced fluctuating trends, with prices initially declining due to falling feedstock costs and subdued demand from key sectors. The reduction in Propylene prices and ample inventory levels led to a bearish market sentiment. Despite steady growth in downstream industries such as Coating and Construction, the oversupply of MPK caused by excessive stockpiles led to lower buyer activity and reduced new orders. The market continued to face pressure, and cautious procurement practices dominated the market. In November, the market experienced another decline driven by weak demand and inventory surpluses, although some sectors showed growth. By December, the MPK market rebounded slightly, with an increase in demand from the Coating and Construction sectors, particularly the Paints and Coating segment. Supply chain disruptions from China added to the tightening of supply, which contributed to the rise in prices. Despite the mixed performance of downstream sectors, overall demand picked up as import costs and inventory management played a significant role in shaping market dynamics.
Europe
In Q4 2024, the Methyl N-Propyl Ketone (MPK) market in Europe followed a bearish trend, primarily driven by lower production costs and weak demand from sectors like Coating and Construction. The drop in feedstock Propylene prices helped reduce manufacturing expenses. Although the construction sector showed a slight improvement in its contraction rate, it still struggled with a significant decline in new orders and increasing pessimism, leading to job cuts and reduced demand for construction materials. To manage excess inventory, market participants offered discounts, but low consumer confidence and tight financial conditions continued to dampen demand. Additional challenges, including labor shortages, heightened market uncertainty, and rising costs, worsened the market sentiment. With new orders remaining low and existing inventory levels adequate to meet limited demand, external issues like rail freight disruptions and a negative economic outlook added further pressure. Despite attempts by the European Central Bank to curb inflation through interest rate cuts, the overall market sentiment for MPK in Europe remained cautious and bearish.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American Methyl N-propyl ketone (MPK) market witnessed a marked decline in prices, driven by a range of supply-demand factors. A primary contributor to this downtrend was the reduced demand from critical downstream sectors, notably the Coating and Construction industries. These sectors faced slower activity during the quarter, which softened demand for MPK, a commonly used solvent in these applications. The resulting demand drop led to surplus inventory levels, creating an imbalance that further pressured market prices downward.
Additionally, the cost of production for MPK decreased due to a drop in feedstock prices, especially in Propylene and Acetone, both crucial raw materials for MPK synthesis. Lower feedstock prices eased production costs, allowing manufacturers to adjust their pricing lower in response to the softer market demand. This decline in feedstock costs further compounded the negative pricing trend for MPK throughout the quarter.
As supply chain adjustments lagged behind demand patterns, the high inventory levels persisted, making it challenging for the market to absorb excess MPK. Consequently, the market experienced consistent downward price adjustments throughout Q3 2024, as the combined effects of surplus supply, reduced demand, and decreased production costs maintained a bearish sentiment across North America’s MPK market.
APAC
In Q3 2024, the APAC region witnessed a notable surge in Methyl N-propyl ketone (MPK) prices, with India experiencing the most significant price changes. The market dynamics were influenced by several key factors. Increased demand from downstream sectors, particularly the construction and coatings industries, played a pivotal role in driving prices upwards. Supply chain disruptions further exacerbated supply constraints, intensifying market bullishness. Additionally, fluctuations in the production costs due to fluctuations in the feedstock prices, where Propylene showcased fluctuations whereas acetone witnessed a declining trend. India, in particular, demonstrated a strong correlation between demand spikes and price increases, showcasing a positive pricing environment. The quarter recorded a 2% price increase from the previous quarter, with a 1% price difference between the first and second half of the quarter. This upward trend culminated in the quarter-ending price of USD 9074/MT of Methyl Propyl Ketone Ex-Mumbai in India, reflecting a consistently increasing sentiment in the pricing landscape.
Europe
In Q3 2024, the European Methyl N-propyl ketone (MPK) market encountered significant pricing challenges, marked by a pronounced decline attributed to several interrelated factors. Demand from key downstream sectors, particularly Coating and Construction, remained weak as economic uncertainties loomed large, affecting consumer confidence and spending power. These uncertainties curtailed investment in construction projects and reduced consumer purchases of coated goods, leading to decreased MPK consumption levels across these sectors. Consequently, this subdued demand created a supply-demand imbalance that exerted downward pressure on MPK prices throughout the region. In tandem with declining demand, production costs also witnessed a downturn, primarily influenced by fluctuations in feedstock prices. While Propylene prices exhibited notable volatility, with occasional spikes, Acetone demonstrated a consistent downward trend. This decline in Acetone prices significantly reduced the overall costs associated with MPK production, enabling manufacturers to lower their selling prices. The resultant price adjustments further contributed to the prevailing bearish sentiment in the market. As producers reacted to the changing landscape, the combination of weaker demand, reduced production costs, and broader economic pressures sustained a steady or downward trajectory for MPK prices during the quarter. Market participants faced a challenging environment characterized by an oversupply of MPK and limited buyer interest, compelling them to navigate this complex landscape with caution. Ultimately, these dynamics not only impacted pricing but also raised concerns about profitability and market stability for stakeholders across the European MPK sector.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, the Methyl N-Propyl Ketone (MPK) market in the USA experienced a mixed price trend. This was primarily influenced by supply chain disruptions due to adverse weather conditions earlier in the year. Despite these challenges, the demand for MPK remained moderate, indicating a stable market environment. The supply of MPK in the US was also moderate, which, coupled with the stable demand, suggested a balanced market scenario. The disruptions in supply were exacerbated by logistical issues, including the temporary closure of Port Houston’s terminals due to icy conditions. Additionally, global shipping routes faced challenges due to conflicts and climate change, further impacting the supply chain.
The demand for MPK in the US was driven by its use in various industries, including paints, coatings, adhesives, and pharmaceuticals. The moderate demand reflected a consistent need for these products in the market. However, the market’s stability was maintained by the balanced supply-demand dynamics, despite the external disruptions.
Overall, the second quarter of 2024 for the MPK market in the USA was characterized by a stable demand and moderate supply, with price trends influenced by external factors such as weather and global shipping challenges. Stakeholders in the MPK industry need to stay vigilant and adaptable to maintain a competitive edge in this balanced yet dynamic market environment
APAC
In Q2 2024, the Methyl N-Propyl Ketone (MPK) market in the APAC region experienced a consistent decline in prices, driven by several significant factors. The primary reasons included subdued demand from key downstream sectors such as paints and coatings, along with economic slowdowns that further dampened market activities. Additionally, the accumulation of high inventories and sluggish trade activities exacerbated the bearish market sentiment. The oversupply of MPK due to extensive production capacities and import hesitations compounded the pricing pressures. Supply chain disruptions, particularly those affecting logistical routes like the Red Sea conflict, added further complexity to the market dynamics. Focusing on India, which witnessed the most pronounced price changes, the overall trend remained negative throughout the quarter. Seasonality played a critical role, with demand typically lower in this period. The percentage change from the previous quarter recorded a decline of -1%. The first half of the quarter saw higher prices compared to the second half, reflecting a -3% drop. Despite operational issues such as the unexpected loss reported by a leading chemicals producer in India, there were no major plant shutdowns reported during this period. The quarter ended with a decidedly negative pricing environment throughout Q2 2024.
Europe
In the second quarter of 2024, the European market for methyl N-propyl ketone (MPK) experienced a period of relative stability. Despite moderate demand, the supply of MPK remained sufficient to meet market needs, preventing significant supply constraints. This balance between supply and demand contributed to a downward pressure on prices. The primary factors influencing MPK prices included the cost of raw materials, particularly acetone and n-propyl alcohol. Acetone, a by-product of phenol production, played a significant role in determining production costs for MPK. The stable supply of these raw materials helped maintain a steady production rate for MPK, ensuring that market demands were met without major disruptions. In terms of end-user industries, the paints and coatings sector continued to be the largest consumer of MPK in Europe. This sector accounted for a substantial portion of the market share, driven by the solvent’s effectiveness in dissolving resins, polymers, and pigments. The pharmaceutical and adhesives industries also contributed to the demand for MPK, albeit to a lesser extent. Overall, the European MPK market in Q2 2024 was characterized by stable supply, moderate demand, and downward price pressure. The market dynamics were influenced by the cost of raw materials and the steady consumption by key end-user industries, particularly paints and coatings.
