Bearish Sentiment Drives MEK Price Reductions, Paints Sector Awaits Seasonal Recovery
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Importers have lowered Methyl Ethyl Ketone (MEK) prices by INR 2/kg, bringing the current price to INR 96/kg (Ex-Kandla) on 60-day credit terms. Authorized dealers of domestic producer Cetex Petrochemicals Ltd. are offering MEK at INR 90-91/kg (Ex-Chennai) for advance payments, and at INR 93/kg on 60-day credit terms.
Chemical Price
- Importers have lowered Methyl Ethyl Ketone (MEK) prices by INR 2/kg, bringing the current price to INR 96/kg (Ex-Kandla) on 60-day credit terms.
- Authorized dealers of domestic producer Cetex Petrochemicals Ltd. are offering MEK at INR 90-91/kg (Ex-Chennai) for advance payments, and at INR 93/kg on 60-day credit terms.
- Traders are quoting INR 94/kg (Ex-Kandla) on advance payment terms for immediate dispatch.
- The price reduction is attributed to weak market sentiment, largely influenced by lower import costs and declining feedstock acetone prices.
Chemical Demand and Supply
- MEK is mainly consumed by industries such as printing inks, packaging, paints, coatings, adhesives, and pharmaceuticals. In August, demand from the pharmaceutical, printing inks, and packaging sectors remained robust, though demand from the paints and coatings segment fell short of expectations, mainly due to seasonal factors.
- Inventory levels at Indian ports are moderate, supported by regular vessel arrivals.
- Price corrections in upstream natural gas have also added to the bearish sentiment. However, MEK prices are expected to recover after October, with the demand from the paints and coatings sector likely to pick up as the season resumes in November.
- India’s monthly MEK demand stands at approximately 2,500 metric tons. Cetex Petrochemicals Ltd., the only domestic producer, has a production capacity of 1,600 metric tons per month, while the remaining 1,000 metric tons are met through imports.
Chemical News
- In the global market, the upstream crude oil benchmark WTI prices showed a marginal decline of 0.10%, settling at $67.60 per barrel. Feedstock natural gas prices also fell by 0.36%, now at $2.74/MMBtu.
- For downstream MEK, CIF India offers from China for end-October arrivals are quoted between $990 and $1,025 per metric ton.
- Meanwhile, Jinling Huntsman, a leading propylene oxide manufacturer based in Nanjing, Jiangsu province, China, which went for annual maintenance in August, resumed operations in the second half of September.
Expert Opinion
Market trends indicate that MEK prices are likely to remain mixed in the short term, with surplus inventory at ports and overall bearish market sentiment. However, strong demand from the printing inks and packaging sectors is expected to provide some upward support for MEK prices in the near future.
Daily Market Report
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