Price Correction Hits Indian MEK Market; Seasonal Recovery Expected Post-April

Key Highlights

• Price Update: Imported MEK assessed at ₹88.50/kg (Ex-Kandla, May liftings); domestic offers at ₹90–92/kg (Ex-Chennai).
• Demand Shift: Weaker buying from paints and coatings; steady from printing inks, packaging, and pharma sectors.
• Supply Scenario: Moderate port inventories supported by continuous vessel arrivals; India’s monthly demand ~2,500 MT.
• Market Outlook: MEK prices may stay mixed, with cautious bulk buying and potential seasonal demand recovery.

MEK Prices Decline on Cautious Market Sentiment

• Importers have revised down their offers for Methyl Ethyl Ketone (MEK) by INR 3/kg, with current prices assessed at INR 88.50/kg (Ex-Kandla) on a 30-day credit basis for bulk lifting scheduled in May 2025.
• Meanwhile, authorized distributors of domestic producer Cetex Petrochemicals Ltd. are quoting MEK at INR 90/kg (Ex-Chennai) for advance payments and INR 92/kg for transactions on 60-day credit terms.
• Traders’ spot offers were heard ranging between INR 92-94/kg (Ex-Kandla) for immediate dispatch with 60-day payment terms.
• The recent downward price adjustment is largely driven by sluggish market sentiment, as buyers remain cautious amid subdued downstream demand and the availability of lower-priced imports.

Downstream Demand: Inks and Packaging Hold Steady, Paints Weaken

• MEK finds major application across sectors such as printing inks, packaging, paints, coatings, adhesives, and pharmaceuticals. While demand during March from the pharmaceutical, printing inks, and packaging industries remained steady, buying interest from the paints and coatings sector has notably weakened this month, weighed down by the ongoing price softening.
• Inventory positions at Indian ports remain at moderate levels, supported by regular vessel inflows. Market participants anticipate that MEK prices could witness a recovery post-April 2025, in line with expected seasonal improvement in paints and coatings demand.
• However, bulk buyers are holding out for potential further price declines, given the consistently high inventory levels resulting from continuous vessel arrivals.
• India’s monthly MEK requirement is estimated at approximately 2,500 metric tons. Cetex Petrochemicals Ltd., the only domestic manufacturer, supplies around 1,600 metric tons per month, with the remaining 1,000 metric tons supplemented via imports.

Inventory Trends and Supply Dynamics at Indian Ports

• Internationally, upstream crude oil markets recorded a slight downturn, with WTI futures settling lower by 0.53% at $61.71 per barrel. 
• Feedstock natural gas prices also edged down by 0.35%, closing at $3.33/MMBtu. 
• Concurrently, CIF India offers for MEK cargoes originating from China for mid-May 2025 arrivals were reported in the range of $935–950 per metric ton.

Expert Opinion: Mixed Price Outlook Expected for MEK

Market indicators suggest that MEK prices are expected to exhibit a mixed trend in the near term, pressured by cheaper replacement costs, abundant port inventories, and weak overall sentiment. Nevertheless, sustained demand from the printing inks and packaging industries could lend some support to MEK pricing going forward.