The domestic market price of methyl ethyl ketone (MEK) is showing a trend of regional convergence, with current prices at a low level for the year, reflecting that the market has not yet formed a clear directional trend amid the supply-demand game between supply and demand.
Since June, major domestic suppliers such as the large plant in Huizhou, Guangdong, the large plant in Anhui, and the large plant in Zibo, Shandong, have collectively reduced production, leading to a sharp decline in supply. Changes in their operating rates have a significant impact on the market’s supply-demand balance.
Downstream industries of MEK, including pulp, leather, and adhesive sectors, are in their traditional low consumption season. Major pulp plants are maintaining production at planned volumes, while small and medium-sized factories are operating at low levels, keeping inventories at medium to low levels and primarily engaging in just-in-time replenishment. In mid-to-early June, after MEK prices fell to near cost levels, downstream users and traders entered the market to buy at low prices. Coupled with a concentrated release of overseas demand before the deadline for the U.S.’s global reciprocal tariffs, export orders for leading enterprises increased, alleviating supply pressure. However, after July 8, changes in tariff policies made it difficult for the strong export momentum to continue.
Overall, the MEK market is at a critical juncture in the supply-demand tug-of-war, with prices fluctuating. Production reductions and maintenance on the supply side provide short-term support, but weak domestic demand and declining export competitiveness pose long-term pressures. Moving forward, it is essential to closely monitor the operating dynamics of leading enterprises, changes in raw material costs, and the pace of policy-driven favorable developments. The market is likely to continue its oscillating pattern amid the interplay of “weak realities and strong expectations.”
