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.
For the Quarter Ending March 2024
North America
In the US market, Methyl N Propyl Ketone (MPK) has experienced a mixed price trend, influenced by various factors including supply chain disruptions due to rough weather at the start of the year. Despite these challenges, the demand for MPK remains moderate, indicating a stable market environment. The moderate demand suggests a steady consumption of MPK in these sectors, reflecting a consistent need for these products in the market.
The supply of MPK in the US is also moderate, which, coupled with the stable demand, indicates a balanced market scenario. As a precautionary measure due to icy roads, Port Houston's terminals were closed for the time being. The United Nations trade body has issued a warning about the escalating assaults on ships in the Red Sea, exacerbating challenges for shipping routes already affected by conflicts and climate change. Additionally, the cold weather has also contributed to disruptions in the supply of materials.
Overall, the mixed price trend, moderate demand, and supply levels, along with the impact of weather-related disruptions, underscore the need for stakeholders in the MPK industry to stay vigilant and adaptable to maintain a competitive edge in the market.
APAC
In Q1 2024, the pricing dynamics of Methyl N-Propyl Ketone (MPK) in the APAC region were influenced by various factors beyond the conventional top three. Overall, the market situation in India played a significant role in the pronounced price fluctuations observed during this period. The demand for MPK in India showed signs of improvement, particularly from the downstream paint and coating industries. This demand was driven by factors such as the extended festive season and growth in the automotive sector. Additionally, the market saw limited availability of MPK due to low inventories and cautious operating conditions among downstream ventures. The supply-demand equilibrium was further disrupted by heightened buying activity and increased trading fundamentals. These factors contributed to an upward price trend for MPK in India. When comparing the prices in Q1 2024 to the same quarter last year, there was a significant increase in MPK prices. This can be attributed to the improved market conditions and the recovery of demand from the paint and coating industries. In conclusion, the final price for Methyl Propyl Ketone (MPK) CFR JNPT in India for Q1 2024 was USD 7831/MT. The pricing dynamics during this quarter were influenced by factors such as increased demand from the downstream industries, limited product availability, and the appreciation of the Indian Rupee. Overall, the market situation in India played a significant role in the pricing fluctuations observed in the APAC region during this period.
Europe
In the European market, Methyl N Propyl Ketone (MPK) has seen a notable decrease in prices, primarily due to the subdued demand across downstream sectors such as paints, coatings, and solvents. This decline in demand could be influenced by several factors, including sluggish economic conditions, regulatory changes impacting the use of MPK, or evolving consumer preferences toward alternative products. Despite the low demand, the supply of MPK in Europe has remained moderate, indicating that producers are capable of meeting current demand levels without encountering significant supply constraints. This balance between supply and demand has contributed to the downward pressure on prices for MPK in the region. The market situation in the Netherlands, where price fluctuations were most pronounced, played a significant role in shaping the pricing dynamics. The construction sector in the Netherlands faced challenges, with a lack of new projects and a decline in demand for building materials. Market participants in the MPK industry are raising apprehensions regarding the potential repercussions of Red Sea diversions, which could affect imports and lead to increased global ocean freight rates within the Eurozone.
For the Quarter Ending December 2023
North America
In Q4 2023, MPK prices in North America remain firmer due to a lack of supply from the regional market. Strong market fundamentals, along with a robust regional consumption rate, aided the price in gaining a foothold. MPK demand from the downstream sector was strong, supporting the price trend. With rising trading emotions around the ports, MPK prices began to move northward.
Prices surged dramatically as regional suppliers increased their offers to local and North American suppliers due to restricted product supply in the region. The MPK market is experiencing tepid demand from the downstream Paint and coating industries, leading to a continuous utilization of inventories, and subsequently boosting prices.
In the North American market, MPK prices have rebounded, driven by suppliers expressing interest in bulk purchases. Regional players have indicated that they have received any new proposals from their suppliers. The contract price of MPK increased due to robust demand and traders' optimistic purchasing appetite. When compared with the previous quarter, the MPK market in North America elevated when compared with the previous quarter.
APAC
Since MPK's inventory level constantly gets utilized, the demand fundamentals for new stocks in Q4 2023 are still high. Some businesses showed resiliency by seeing a minor increase in earnings during the last quarter of the year, but others had a larger increase in net profit. Higher levels of purchasing activity and robust market fundamentals also affected trade. The rise in demand fundamentals from the downstream enterprises witnessed a surge in the market trade along with an increase in market purchases. In India, the price of MPK in Dec 2023 surged to USD 7411/ton CFR JNPT. The player pointed out that traders have raised their prices for import cargo to cover the rising costs. The soaring costs of import MPK and its downstream enterprises add inflationary pressures to markets to cope with the end-user requirement. In terms of feedstock market, the cost support from the upstream Acetone market was also strong, raising the production cost. Due to the high operating rates of the production units and the increased demand for MPK from downstream adhesive and chemical intermediates, an attempt was made to fulfill the supply of the product, but the demand exceeded the demand.
Europe
The price of MPK experienced an upward trajectory in line with rising Ketone prices. The surge in purchasing enthusiasm and robust trading fundamentals exerted a notable influence on the price trend. Increased trading activities in the European region provided producers with an opportunity to raise their quotations for the area. Scarce product availability and escalating market fundamentals further bolstered the upward price movement. The sustained demand fundamentals for MPK at higher price levels play a pivotal role in the current pricing dynamics. Simultaneously, MPK stockpiles dwindled amid a robust trading stance in European countries. Domestic pricing by regional MPK producers was raised, and the upswing in market demand from downstream enterprises reinforced the overall price trend. The trade of MPK from Germany to other European markets witnessed an uptick, alongside growing interest in bulk purchases. Transactions involving MPK in the Netherlands also saw an increase, coupled with a rise in product stockpiles, contributing to the overall upward price trend. Trading activities developed favorably, characterized by bullish trends driven by increases in market trading fundamentals, alleviating stock pressure, and fostering expectations for lively replenishment activity.
For the Quarter Ending September 2023
North America
Throughout the third quarter of 2023, prices of Methyl Propyl Ketone (MPK) in the North American region exhibited consistent increases, driven by a combination of factors. In July, prices went up due to limited domestic interest and improving global economic conditions. However, MPK demand continued to be affected by a shortage of the product in the region. Moving into August, MPK prices in the United States rose again, primarily due to restricted product supplies and inadequate stock levels in the American market, impacting trade conditions. The trade market also saw price increases during this period due to strong market fundamentals and increased purchasing volumes. In September, manufacturers were compelled to further raise MPK prices due to robust trade fundamentals and limited product availability. Leading companies experienced improved profit margins and revenues, driven by high market demand and active trading. The upward price trend was influenced by rising costs in the feedstock market, particularly from upstream products like Acetone and n-propanol in the market. These cost increases impacted operational expenses and contributed to the overall trend of higher import prices.
APAC
During the third quarter of 2023, Methyl Propyl Ketone (MPK) prices in the Asia-Pacific region experienced consistent surges, driven by a combination of factors. In July, prices rose due to subdued domestic interest and improving global fundamentals. However, MPK demand remained affected by limited product availability in the region. India's Manufacturing Purchasing Managers' Index (PMI) decreased slightly from 57.8 in June to 57.7 in July but still indicated the 25th consecutive month of factory activity growth. August saw MPK prices in India rise once again, primarily due to constrained product supplies and inadequate stock levels in the Indian market, affecting trading conditions. The trade market also witnessed price surges during this period, driven by strong market fundamentals and increased purchasing volumes. India's Manufacturing PMI rebounded to 58.6 in August, surpassing market estimates of 57.5 and marking the 26th straight month of factory activity growth. In September, manufacturers were compelled to further increase MPK prices due to robust trade fundamentals and limited product availability. Top corporations enjoyed enhanced profit margins and revenues, backed by a high market demand and active trading. The upward price trend was influenced by rising costs in the feedstock market, particularly from upstream products like Acetone and n-propanol in the Chinese market. These cost increases impacted operational expenses and contributed to the overall trend of higher import prices.
Europe
Throughout the third quarter of 2023, prices for Methyl Propyl Ketone (MPK) in the European region followed a consistent upward trajectory, influenced by a combination of factors. In July, prices experienced an uptick due to limited local interest and the improving global economic climate. However, MPK demand continued to be hampered by a regional product shortage. Moving into August, MPK prices in Europe saw another increase, primarily driven by constrained product supplies and insufficient stock levels in the European market, impacting trade conditions. The trade market also witnessed price hikes during this period due to strong market fundamentals and increased purchasing activities. In September, manufacturers were compelled to further raise MPK prices due to robust trade fundamentals and limited product availability. Prominent companies enjoyed enhanced profit margins and revenues, thanks to high market demand and active trading. The upward price trend was influenced by rising costs in the feedstock market, particularly stemming from upstream products like Acetone and n-propanol in the European market.
For the Quarter Ending June 2023
North America
Lower spot and contract prices in Q2 2023, on top of muted fundamentals such as soft demand, ample supply, and feedstock Ketone prices, slow the prices of Methyl N-Propyl Ketone (MPK) in the US market. The weakness in the downstream solvent industry in the production of flavors and fragrances, as a cleaning agent in the electronics industry, contributed to weaker forecasts and deterred earnings in Q2 2023. Buyers' interest in bulk purchasing remained thin, and sluggish upstream crude prices further supported the downward trend. MPK prices slipped due to deteriorating demand and limited trading volume from the significant producing units. Traders further expected the prices to decline further with the stockpiling of inventories in the region. The cost of MPK dropped further, where low interest, adequate stock, and a feeble downstream market stay the driving variables. Downstream interest stayed impacted because of low buys and cautiously operating assembling units as indicated by consumers' needs. The demand for MPK from the overseas market remained feeble, with limited demand for fresh stocks.
Asia Pacific
In Q2 2023, the demand fundamentals for MPK started with healthy demand fundamentals and limited product supply. However, during May and June 2023, the adequate supply of products and deteriorating product demand impacted the price trend. MPK demand in the Asian market remains impacted by weak spot and contract price discussions. The cost of MPK drops further, where low interest, adequate stock, and a feeble downstream market stay the driving variables. Inflows of cargo from the overseas market to the Asian port remain sluggish with lower market fundamentals. The demand for MPK from the downstream solvent remains weak, with cautiously operating significant ventures. MPK manufacturers in Asia had a low willingness to import more shipments from overseas. In the Asian market, the demand for MPK plunged, and trading activities remained feeble, which forced the producers to lower the price trend—tepid market sentiments alongside the usage of existing inventories brought about such a weak cost pattern. The Asian market has seen low US offers this quarter because of demand disruption. Demand is a real concern in the Asian market, keeping the MPK viewpoint bearish. However, significant producers have been cutting production rates in trying to offset this drop in demand.
Europe
In Q2 2023, the price of MPK showcased a bearish price trajectory in the wake of limited purchasing orders and low purchasing activities. As trading activities were limited with low market interest, producers rushed to clear their MPK inventories. This quarter, the price of European MPK slipped as the supply was sufficient, and the demand performance was mainly flat. Feeble market trading and lower bidding of the product slumped the regional prices. Exports from Germany to the global market also decreased, and suppliers remained reluctant to buy the product in bulk. The demand for MPK from downstream has waned with oversupplies and weak market fundamentals. Traders said that the requirement for MPK has been slowing down and hit market dynamics coupled with uncertainty in regional economic growth. In terms of feedstock, Ketone prices slumped with slow market offtakes for the trading. Purchasing activity remains limited as buyers purchase the stocks according to their needs and hope to see additional drops. Despite run rate cuts, overall supply levels are sufficient to fulfill the product requirement from the downstream solvent market.
For the Quarter Ending March 2023
North America
Throughout the USA, the price of Methyl N Propyl ketone (MPK) has been fluctuating throughout the first quarter of 2023. Due to sluggish orders from the construction, paints & coatings, and other solvent sectors, the price leveled out in January. Following the flattening of the price trend, the product's demand marginally increased, and the makers reported a high price trend in the US market. Participants in the market claim that the US market has seen a decline in new orders and that demand from the downstream construction sector (paints and coatings) has been poor to stable.
Asia
The cost of MPK showed a declining trend for the first two months before slightly increasing in the final month. The traders claimed that little cargo was imported for the Indian market and that there was a lot of inventory from other Asian nations. According to market players in the domestic market, demand has been stable to poor, and there have been few instances of fresh orders being requested by end users, which has led to a negative attitude toward pricing. Due to growth in the printing and downstream ink industries in March, prices began to move upward. The March PMI figures showed an improvement in overall operational conditions for the twenty-first consecutive month. India's manufacturing activities achieved record highs thanks to higher growth in new orders.
Europe
The price of Methyl N Propyl Ketone (MPK) fell in Europe throughout the first quarter of 2023 due to consistent supply and sufficient availability in the market. The construction, coating, and other solvent industries had little demand for MPK, and the majority of the downstream procurement was based on demand. High-interest rates and other relevant factors hampered the downstream solvent industries in the European region. The global economy's sluggish performance dampens German exports, and high inflation rates dampen consumer spending and construction activity by reducing purchasing power and significantly increasing financing costs.
For the Quarter Ending December 2022
North America
The Methyl N-Propyl Ketone (MPK) market in the United States experienced a downward trend during the fourth quarter of 2022. In this quarter, the global market remained stagnant, and the product was stockpiled as a result of declining orders from the overseas and US regional markets. Inflation and high-interest rates in the United States are to blame for the low demand in the downstream paints & coatings and construction industries. According to market participants, the majority of purchases were based on demand. The approaching holiday in the final month of Q4 further reduced buyer demand and orders. In addition, domestic consumers tended to wait and buy in the face of inflation.
APAC
The price of Methyl N Propyl Ketone (MPK) decreased in the Asia market during the fourth quarter of 2022. The downstream industry showed little interest, and the abundant stockpile of the item in the field decreased the cost of MPK. Due to poor market sentiment, the end-use paints and coatings sector demonstrated MPK's weak demand in the Asian market. During the fourth quarter, China's government imposed a zero COVID restriction, affecting domestic and international market trading. In order to clear space on the market for the material, traders sold the product at an offer price due by the end of the year.
Europe
During the fourth quarter of 2022, the price trend of Methyl N Propyl Ketone (MPK) decreased in Europe as a result of negative market sentiment. End-use industries saw little demand due to high inflation and a declining buying trend in the European market. Due to the ample gas storage in major EU nations, the price of natural gas on the market decreased and lowered production costs. Several businesses slowed down their production rates due to low demand from end-use industries, but the product was readily available. Producers offered to destock their products at a low price at the end of the quarter as the holidays got closer.
For the Quarter Ending September 2022
North America
The price of Methyl N Propyl Ketone witnessed a decline in the North American region throughout the Q3 of 2022. The weak demand from the downstream industries like coating and other key driving sectors further reduced the price of Methyl N Propyl Ketone. The high rate of inflation has dampened demand from the MPK industries. At the same time, orders from the overseas market remained weak due to consumer sentiment uncertainty. The supply chain was disrupted because some US ports have congested and delayed delivering the product.
APAC
Methyl N Propyl Ketone's price gradually decreased in the Asian market throughout Q3 2022. The weak demand from the downstream solvent industries and cheap imported cargo have declined the price of MPK in the region. The inventory level from the exporting countries was high, and a sufficient supply of the product also contributed negative price trend in the market. The traders have quoted lower prices because the buying trend decreased from end users in the market. The cost of Methyl N Propyl Ketone settled at USD 6893/MT on a CFR JNPT basis during the quarter ending of 2022.
Europe
During the third quarter of 2022, the price of Methyl N Propyl Ketone observed a downward trajectory in the European market. The weak demand from the coating industries and poor customer purchasing orders decreased the price of the MPK in Europe. Due to high natural gas prices in the Eurozone, customers were reluctant to buy a product in the region. The overall markets in Europe were in weaker sentiments, and several circumstances disrupted trading activities. Additionally, the manufacturing PMI decreased month over month during the third quarter, supporting this pricing dynamics in the country.
For the Quarter Ending June 2022
North America
The price of Methyl n Propyl ketone increased in the North American region during the second quarter of 2022, owing to the limited supply of raw materials in the regional market. The high demand from downstream industries, automotive, coating industry, and other sectors increased the price of Methyl propyl ketone. The cost pressure from upstream raw materials accelerated, and the price of the downstream derivatives climbed in the region. The United States is one of the exporters of Methyl N Propyl Ketone to the Asian region. The production cost soared due to increased crude and natural gas prices.
Asia Pacific
In the second quarter of 2022, the price of Methyl Propyl Ketone witnessed an upward trajectory throughout the quarter. The upstream calcium acetate price increased in April, suddenly fell in May, and then rose again in June. The upstream price fluctuated in the Indian market, ultimately impacted on the downstream Methyl N Propyl Ketone. The moderate demand from the end-user industries like paints, coatings, and solvents supports the price rise in the regional market. The percentage of Methyl N Propyl Ketone in India has been recorded at an inclination of 1.6% on a CFR JNPT basis during the second quarter.
Europe
The market value of Methyl N Propyl ketone in Europe has witnessed an upward trajectory throughout the second quarter of2022. The feedstock supply in the European market was constrained, leading to the upstream price increase; consequently, Methyl n Propyl ketone rose. The supply restriction and the energy prices soared due to the war in Eastern Europe. The high freight charges and growing energy cost increased the product's price. The cost pressure from upstream raw materials strengthened. The insufficient supply and demand from the downstream industries like paints and coating, automotive, and other key driving sectors prompted the product's price in the regional market.
